Statistics: Informed Decisions Using Data (4th Edition)

Published by Pearson
ISBN 10: 0321757270
ISBN 13: 978-0-32175-727-2

Chapter 8 - Section 8.1 - Assess Your Understanding - Applying the Concepts - Page 411: 23d

Answer

P(X > 0) = 0.8531. This implies that 85 out of 100 samples will have mean positive rate of return for a 36 month period.

Work Step by Step

Here we have n = 36 $σ_{x̅} = \frac{σ}{n} = \frac{0.04135 }{\sqrt 36} = 0.0011$ $z = \frac{x̅ - μ_{x̅}}{σ_{x̅}} = \frac{0 - 0.007233}{0.0011} = -1.05$ P(X > 0) = P(z > -1.05) = P(z < 1.05) = 0.8531
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