Suppose price changes of a particular commodity are independent and identically distributed random variables with µ = 1.1 and variance σ2 = 0.16. You collect a sample of 36 such price changes. Use the Central Limit Theorem to compute the probability that the average price change of this sample is less than 1.0.

Answers

Answer 1

Answer:

0.0668 = 6.68% probability that the average price change of this sample is less than 1.0.

Step-by-step explanation:

Normal Probability Distribution:

Problems of normal distributions can be solved using the z-score formula.

In a set with mean [tex]\mu[/tex] and standard deviation [tex]\sigma[/tex], the z-score of a measure X is given by:

[tex]Z = \frac{X - \mu}{\sigma}[/tex]

The Z-score measures how many standard deviations the measure is from the mean. After finding the Z-score, we look at the z-score table and find the p-value associated with this z-score. This p-value is the probability that the value of the measure is smaller than X, that is, the percentile of X. Subtracting 1 by the p-value, we get the probability that the value of the measure is greater than X.

Central Limit Theorem

The Central Limit Theorem estabilishes that, for a normally distributed random variable X, with mean [tex]\mu[/tex] and standard deviation [tex]\sigma[/tex], the sampling distribution of the sample means with size n can be approximated to a normal distribution with mean [tex]\mu[/tex] and standard deviation [tex]s = \frac{\sigma}{\sqrt{n}}[/tex].

For a skewed variable, the Central Limit Theorem can also be applied, as long as n is at least 30.

Mean µ = 1.1 and variance σ2 = 0.16. You collect a sample of 36 such price changes.

So the standard deviation is:

[tex]\sigma = \sqrt{\sigma^2} = \sqrt{0.16} = 0.4[/tex]

Sample of 36:

This means that [tex]s = \frac{0.4}{\sqrt{36}} = 0.0667[/tex]

Probability that the average price change of this sample is less than 1.0.

This is the pvalue of Z when X = 1. So

[tex]Z = \frac{X - \mu}{\sigma}[/tex]

[tex]Z = \frac{1 - 1.1}{0.0667}[/tex]

[tex]Z = -1.5[/tex]

[tex]Z = -1.5[/tex] has a pvalue of 0.0668

0.0668 = 6.68% probability that the average price change of this sample is less than 1.0.


Related Questions

If a varies inversely with b, and a=20 when b=1/4, find the equation that relates a and b

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Answer:

Step-by-step explanation:

280ora

ZABC and ZQRS are supplementary angles.
If the measure of ZABC = 60°, what is the
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mZQRS = [?]°

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Answer: [tex]120^{\circ}[/tex]

Step-by-step explanation:

Supplementary angles add to 180 degrees.

3. A rectangular prism has dimensions of 1/2 , 2, and 7/2 in.
(a) Determine the edge length of the largest unit cube that you could use to pack the prism. Explain.
(b) What is the volume of the prism? Explain.
(c) How many cubes with the edge length from part (a) will fit into the prism? Explain.

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Answer:

A

Step-by-step explanation:

B.In

geometry, a prism is a polyhedron comprising an n-sided polygon base, a second base which is a translated copy of the first, and n other faces, necessarily all parallelograms, joining corresponding sides of the two bases. All cross-sections parallel to the bases are translations of the bases.

C.4 cubes is have

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Answers

Answer:

There are 64 cubes

The volume = L*W*H

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Answer: The triangles are congruent by the ASA similarity theorem.

Answer:

hi

Step-by-step explanation:

i think so,a)congruent

b)ASA

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have a nice day

If you have 10 tennis players in a round-robin tournament. How many games will they need to play before each player has played every other player?

Answers

Answer:

6

Step-by-step explanation:

i just had the same question :)

3.14(10)^(2)12

I cant figure this out

Answers

3.14(10)^2(12)

answer=3768

753.6 i think that is what i got.

NEED HELP FOR TEST!!!
Diego’s family car holds 14 gallons of fuel. Each day the car uses 0.6 gallons of fuel. A warning light comes on when the remaining fuel is 1.5 gallons or less. B. Starting from a full tank, can Diego’s family drive the car for 25 days without the warning light coming on?

Answers

The inequality is
The maximum number of days that Diego's father can drive the car without the warning light coming on is 20 days
Step-by-step explanation:
14 gallons-1.5 gallons=12.5 gallons
we know that
If the remaining fuel is greater than 1.5 gallons Diego's father can drive the car without the warning light coming on
so
Let
x ----> the number of days
----> inequality that represent the situation
Solve for x


The maximum number of days that Diego's father can drive the car without the warning light coming on is 20 days

Mrs.Kenny teaches a ceramics class.She finds that she has 7/8 pounds of clay for a project. The project requires 1/6 of a pound.How many projects can Mrs.Kenny complete withought running out of clay


PLS FAST

Answers

7/8 = 21/24 1/6= 4/24 ——-> can go into 21/24 5 times. So the answer is 5.

what expression has a term with a base of 8

z^8
8^4
3xy+8
8m

Answers

8m is the correct answer

A number cube with the numbers 1 through 6 is rolled. How many total number of outcomes are there?
total number of outcomes

Answers

Answer:

6 outcomes

Step-by-step explanation:

If a number has the numbers 1-6, the sample space, or the number outcomes would be 6.I hope this helped! =)

URGENT PLZ HELP

find measure angle LMN

Answers

Answer:

(14.3/(2*bi*h)) * 360

Use the calculator

Step-by-step explanation:

Answer:

Step-by-step explanation:

Ф = s / r

Ф = 14.3 / 5

Ф = 2.86 radians

2.86 * 180 / [tex]\pi[/tex] = 163.865924 °

what is the missing value 4+9=9+?

Answers

Answer:

TᗩKᗴ Tᕼᗴ ᗰIՏՏIᑎᘜ ᐯᗩᒪᑌᗴ ᗩՏ ᙭

[tex]4 + 9 = 9 + x \\ 4 + 9 - 9 = x \\ 4 = x[/tex]

=> ᵗʰᵉ ᵐⁱˢˢⁱⁿᵍ ᵛᵃˡᵘᵉ ⁱˢ 4.

The missing Value is 4.

What is Commutative property?

According to the commutative property, the numbers on which we operate can be swapped out or moved without affecting the result. Subtraction and division are not supported by the property, but addition and multiplication are.

Given Expression

4 + 9 = 9 + ?

According to Commutative  property

A + B = B + A

for expression

4 + 9 = 9 + 4

or let missing number be x

4 + 9 = 9 + x

x = 4 + 9 - 9

x = 4

Hence the missing value is 4.

Learn more about Commutative property;

https://brainly.com/question/778086

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What is the decimal equivalent of the fraction 8/15?
0.53
_
0.53
Show work!!

Answers

9514 1404 393

Answer:

  0.533... (repeating)

Step-by-step explanation:

You will notice that the division problem repeats when the quotient digit is 3. The decimal equivalent is a repeating decimal with a 1-digit repeat. That digit is 3.

  [tex]\dfrac{8}{15}=0.5\overline{3}[/tex]

Answer:

0.5333333…. (3 repeated)

Step-by-step explanation:

8 goes on the inside of the house and 14 on the outside

*Not my handwriting. A friend wrote it and I did the math*

The product of 4 and triple the number 2

Answers

Answer:

32

Step-by-step explanation:

4 x 2 x 2 x 2 = 32

8. You sold 1000 shares of Ibex for $10.50 per share. Your broker charges you a
commission of $3.25 per thousand dollars of stock bought or sold. How much
money will be credited to your account when you sell? (Remember, commissions
are subtracted out of your transaction.)

Answers

Answer:

Amount credit in account = $10,465.875

Step-by-step explanation:

Given:

Number of shares = 1,000

Selling price of each share = $10.50

Broker charges = $3.25 per 1,000 dollar

Find:

Amount credit in account

Computation:

Total sales value = Number of shares x Selling price of each share

Total sales value = 1,000 x 10.50

Total sales value = $10,500

Total broker charges = 10,500 [3.25/1000]

Total broker charges = $34.125

Amount credit in account = Total sales value - Total broker charges

Amount credit in account = 10,500 - 34.125

Amount credit in account = $10,465.875

James's T-shirt business uses the demand function P=-Q+ 31 and the
supply function P= Q- 17. According to these functions, what will the
equilibrium point (P, Q) be for James's T-shirt business?
A. (24,7)
B. (17, 31)
C. (31,73)
D. (7.24)

Answers

Answer:

7.24

Step-by-step explanation:

i did the quiz and have a great day

Rosa made a mosaic wall mural using 46 black tiles, 35 blue tiles and 19 red tiles.
Enter a percent to represent the number of red tiles in the mural.
The number of red tiles in the mural represents
%
What is the answer

Answers

Answer:

21%

Step-by-step explanation:

What’s 1000-7...? >:T

Answers

The answer is gonna be 993 :D

Answer:

9993

Step-by-step explanation:

literaly u just have to do this:

1000

-     7

--------

9993

320÷÷((11−9)32(11−9)32) x 8 =

Answers

320÷((11−9)32(11−9)32) x 8

320÷((352-288)(352-288) x 8

320÷(64 x 64) x 8

320÷4096 x 8

0.078125 x 8

0.625

Answer:0.625

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Answers

Answer:

12.5 sq. units

Step-by-step explanation:

Divide the blue triangle into two smaller triangles.

The length of their common base = 5 units

The height of the yellow triangle = 2 units

The height of the red triangle = 3 units

The area of the yellow triangle

= (5×2)÷2

= 5 sq. units

The area of the red triangle

= (5×3)÷2

= 7.5 sq. units

The total area

= 5+7.5

= 12.5 sq. units

Triangle UVW has a perimeter of 11.5 units. Solve for y.

Answers

Answer:

The answer for y is 4 units

Step-by-step explanation:

The obvious question to ask in this situation is, “how many miles does Joseph travel on Mondays”? To compute, we each distance: 3 + 6 + 6 = 15.

Joseph travels 15 miles on Mondays.

Another way to work with this situation is to draw a shape that represents Joseph’s travel route and is labeled with the distance from one spot to another.

Notice that the shape made by Joseph’s route is that of a closed geometric figure with three sides (a triangle) (see figure 2). What we can ask about this shape is, “what is the perimeter of the triangle”?

Perimeter means “distance around a closed figure or shape” and to compute we add each length: 3 + 6 + 6 = 15

Our conclusion is the same as above: Joseph travels 15 miles on Mondays.

However, what we did was model the situation with a geometric shape and then apply a specific geometric concept (perimeter) to computer how far Joseph traveled.

Answer:

4 units

Step-by-step explanation:

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Answers

Answer:

10 sides.

Step-by-step explanation:

In geometry, a decagon is a ten-sided polygon or 10-gon. The total sum of the interior angles of a simple decagon is 1440°. A self-intersecting regular decagon is known as a decagram.

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Answers

Answer:

square unit

Step-by-step explanation:

1 x 1 = 1

The answer would be a square unit

How many bananas are there in B?
With explanation!

Answers

Answer:

is it 35 bannas

Step-by-step explanation:

I hope the above link will be of help

What is 1+1+3x3x3x3x3x90+2

Get all my points

Answers

21874 21874 21874 it

Identify the cross section shown.




rectangle


triangle


circle


trapezoid

Answers

Rectangle!
If you need something, I will be here!

PLEASE ASNWER ILL GIVE YOU BRAINLIEST

Answers

Answer:

33 1/3%

Step-by-step explanation:

(672 - 600) / 4 = 72 / 4 = $18, which is 33 1/3%

Hope that helps! A Brainliest would be appreciated :)

Answer:

3%

Step-by-step explanation:

1) 672-600=72 = the simple interest

2) 72=600(4)r which equals 72=2400r

3) divide 72 by 2400 which get 0.03

4) 0.03 = 3%

What is the slope of a line perpendicular to y=-7/4x?
O A. - 4
O B. - 7
O c.
7
4
O D. 4

Answers

It would be the opposite of it so 4/7

Answer pls it’s due at 3

Answers

Answer:

24

Step-by-step explanation:

3*8 = 24

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