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Question 3(a) The monthly stock return of IBM is normally distributed with a mean of 0.08 and a standard deviation of 0.04. (i) What is E(X)? What is Var(X)? What is CV(X)? (2 marks) (ii) What is the probability that the stock return is lower than 0.08? (iii) What is the probability that the stock return is between 0.04 and 0.07? (b) What are the five steps we need to follow when conducting hypothesis testing? (1 mark) (c) Based on a random sample of 16 customers, the mean amount spent on fast food by an individual per year equals $240. At the significance level α = 0.05, Helen would like to test if the population mean amount spent on fast food per year equals $311, as reported by an industry report. It is known that the amount spent on fast food per year is normally distributed with a standard deviation of $140. (Show all steps) (6 marks)

          Question 3(a) The monthly stock return of IBM is normally distributed with a mean of 0.08 and a standard deviation of 0.04.

(i) What is E(X)? What is Var(X)? What is CV(X)? (2 marks)

(ii) What is the probability that the stock return is lower than 0.08?

(iii) What is the probability that the stock return is between 0.04 and 0.07?

(b) What are the five steps we need to follow when conducting hypothesis testing? (1 mark)

(c) Based on a random sample of 16 customers, the mean amount spent on fast food by an individual per year equals $240. At the significance level α = 0.05, Helen would like to test if the population mean amount spent on fast food per year equals $311, as reported by an industry report. It is known that the amount spent on fast food per year is normally distributed with a standard deviation of $140. (Show all steps) (6 marks)

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