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Alja [10]
3 years ago
14

You observe a portfolio for five years and determine that its average annual return is 13% and the standard deviation of its ret

urns is 21%. Can you be 95% confident that this portfolio will not lose more than 30% of its value next year
Mathematics
1 answer:
horrorfan [7]3 years ago
6 0

Answer:

There is a 95% probability that the portfolio would not loose more than 30% of its value.

Step-by-step explanation:

The confidence interval for proportions (<em>p</em>) is:

CI=\hat p\pm z_{\alpha/2}\sqrt{\frac{\hat p(1-\hat p)}{n}}

The information provided is:

\hat p = 0.13\\\sqrt{\frac{\hat p(1-\hat p}{n}} =0.21

For 95% confidence level the critical value of <em>z</em> is:

z_{\alpha/2}=z_{0.05/2}=z_{0.025}=1.96

The 95% confidence interval for average annual return is:

CI=\hat p\pm z_{\alpha/2}\sqrt{\frac{\hat p(1-\hat p)}{n}}\\=0.13\pm 1.96\times0.21\\=0.13\pm 0.4116\\=(-0.2816, 0.5416)\\\approx(-28\%, 54\%)

The lower limit of the 95% confidence interval is -28%.

This implies that the portfolio would not loose more than 28% of its value.

Thus, there is a 95% probability that the portfolio would not loose more than 30% of its value.

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Is 4y=16x a Direct variation
gizmo_the_mogwai [7]

In the given equation, as the value of <em>y</em> increase, the value of <em>x</em> also

increases.

  • Yes, 4·y = 16·x is a direct variation

Reasons:

A direct variation is a relationship that exists between two variables. It is

also known as a direct proportion which can be expressed as; y = k·x

Where <em>k</em> is a number

The given equation is 4·y = 16·x

Dividing both sides by 4 gives;

\displaystyle \frac{4 \cdot y}{4}  = \frac{16 \cdot x}{4} = \frac{4 \times 4 \cdot x}{4}

Which gives;

y = 4·x

Comparing the above equation with the equation for a direct variation gives;

y = 4·x

y = k·x

Therefore;

k = 4

The equation, y = 4·x, and therefore, the equation from which it is derived, 4·y = 16·x, is a direct variation.

Learn more about direct variation here:

brainly.com/question/6499629

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2 years ago
Haylee opened her savings account with $440 in week 1. each week after this, she deposited $65 in her account. how much money wi
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The answer is 2000 dollars
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netineya [11]
B. The 3 is repeated in a function every x has exactly one y. Hope this helped !
7 0
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Please help<br> its really important
DENIUS [597]
See the attached image for the answers in figure 2 and figure 3. Figure 1 will be used to generate figure 2 and figure 3.

--------------------------------------------

Use the given table to compute the row and column totals. We simply add up values to get these totals. 

Boys: 108+23 = 131 meaning that there are 131 boys total so this value will go in row 1 of the "total" column attached to the right side of the given table. See figure 1.

Girls: 99+16 = 115 will go right under 131. 

Right-Handed: 108+99 = 207 will go under 99 in the "right handed" column in the "total" row.

Left-handed: 23+16 = 39 will go next to the 207 in the same total row as before

--------------------------------------------
We have the row and column totals computed. Now onto the next step.

Copy the entire table (with row and column totals) to another sheet of paper or just below the table you just wrote out. This new second table will be built upon and altered. First, erase the bottom "total" row. Now divide everything in row 1 by the total
108/131 = 0.82442748091603 which rounds to 0.82
23/131 = 0.17557251908397 which rounds to 0.18

So we'll have 0.82 and 0.18 fill in for the first row of the "Boys" row. See figure 2.

Do the same for the second row. Divide everything in this row by the total 115
99/115 = 0.8608695652174 which rounds to 0.86
16/115 = 0.1391304347826 which rounds to 0.14

The values 0.86 and 0.14 will go in the first two columns of row 2.

The totals will divide by each other to lead to 1
131/131 = 1
115/115 = 1
which explains why we have two '1's in the very right column. They represent 100%

Again, see figure 2 to see how the values are placed.
--------------------------------------------

We'll follow similar steps as before in the previous section. Copy the table from figure 1 but now erase the entire right-hand column marked "total". 

Divide everything in column 1 by the total 207
108/207 = 0.52173913043479 which rounds to 0.52
99/207 = 0.47826086956521 which rounds to 0.48
207/207 = 1

Divide everything in column 2 by the total 39
23/39 = 0.58974358974359 which rounds to 0.59
16/39 = 0.41025641025641 which rounds to 0.41
39/39 = 1

See figure 3 to see how the values are filled in. The values in red are the results we got in this section. The '1's have already been filled in by your teacher.
--------------------------------------------

Side Note: In figure 2, the red values in the "Boys" row add up to 1
0.82+0.18 = 1
The same can be said for the "girls" row too
0.86+0.14 = 1

In figure 3, the red values in the "right handed column" add to 1
0.52+0.48 = 1
And similarly for the "left-handed" column
0.59+0.41 = 1

These four facts are not coincidences. For instance, 82% of the boys are right-handed so that leaves 18% left-handed boys (see row1 of figure 2). So 82% + 18% = 100% which is represented by 0.82+0.18 = 1

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Orange is a reflection of green because they have the same points. The difference is one has all positive and the other has one negative.

Not actual points just an example:

Orange (5,5), (5,5), (5,5)

Green (-5,5), (-5,5), (-5,5)

They are the same shape but Orange is a reflection of green

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