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Iteru [2.4K]
3 years ago
5

An online investment blogger advises investing in mutual funds that have performed badly the past year because 'regression to th

e mean tells us that they will do well next year.'
Is he correct?
Business
1 answer:
Kipish [7]3 years ago
7 0

Answer:

The correct answer is: No, he is not correct.

Explanation:

Regression to the mean is a statistical phrase that tries to explains that is something happened at the first attempt, it is likely to happen again at a second attempt and if it happens at the second attempt it is because it almost happened at the first attempt.

Then, following the concept of regression to the mean,<em> if a mutual fund performed badly on the last period, it is likely to perform even worse in the current period</em>. Thus, the online investment blogger is wrong.

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8 0
2 years ago
What does total number of allowances you are claiming mean.
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Answer:

mean the amount you are getting

Explanation:

Hope this help

3 0
2 years ago
Mr. Drucker uses a periodic review system to manage the inventory in his dry goods store. He likes to maintain 15 sacks of sugar
ElenaW [278]

yes

Explanation:

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7 0
3 years ago
Unlike product, promotion, or place, price is the only part of the marketing mix
mario62 [17]
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4 0
3 years ago
RGDP in the United States has grown at an average annual rate of 3% in the last couple of decades. If the RGDP annual growth rat
Natali [406]

Explanation:

i=interest rate

X=current rate

2X = double current rate

n = number of years

Calculate time it takes to double at 3%:

2X = X(1+i)^n

simplify by cancelling out X

(1+i)^n = 2

substitute i = 3%

(1.03)^n =2

take log

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Similarly, for growth rate of 7%,

n = log(2)/log(1.07) = 0.6931 / 0.06766 = 10.24 years

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3 0
3 years ago
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