## Question 622:

1. If the daily stock price, x, of United Technology is normally distributed with mean 6.56 and standard deviation 2.4, calculate the probability that in a randomly selected ay the price will be between $3.25 and $7.36. Hint: Review normal distribution2. An important measure of the risk associated with a stock is the standard deviation, or variance, of the stock\'s price movements. A financial analyst wants to test the hypothesis that stock A has a greater risk than stock B. A random sample of 25 daily prices of stock A gives the sample variance of, and a random sample of 22 daily prices of stock B gives a sample variance of . Carry out the F-test at 52.62=as47.32=Bsá = 0.01.

3) An industry is comparing its performance against an industry benchmark that no more than 30 percent of its product will be returned by its customers in a given month. A sample of 350 customers 113 of them returned the company product. At á = .025, does this sample prove that the rate of return exceeds the benchmark