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An investment company knows that the rates of return on its portfolios have a mean of...

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Statistics

An investment company knows that the rates of return on itsportfolios have a mean of 7.45 percent, with a standard deviationof 3.82 percent. The company selects a sample of 144 portfolios toanalyze. Assume the company has tens of thousands of portfolios.(Careful- \"percent\" is just a unit here!) You do NOT need to checkCLT here.

A. What is the probability that the mean of the sample issmaller than 7 percent?

B. What is the probability that the mean of the sample is largerthan 7.3 percent?

C. What is the probability that the mean of the sample isbetween 7.5 and 8.2 percent?

Answer & Explanation Solved by verified expert
3.9 Ratings (475 Votes)
Part A X N 745 382 P X 7 Standardizing the value Z X n Z 7 745 382 144 Z 141 P X n 7 745 382    See Answer
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