🎉 Announcing Numerade's $26M Series A, led by IDG Capital!Read how Numerade will revolutionize STEM Learning

Like

Report

Numerade Educator

Like

Report

Problem 10 Easy Difficulty

Business Week published information on 283 equity mutual funds (Business $W e e k,$ January
$26,2004 ) .$ A sample of 40 of those funds is contained in the data set Mutual Fund. Use the
data set to answer the following questions.
a. Develop a point estimate of the proportion of the Business Week equity funds that are load funds.
b. Develop a point estimate of the proportion of funds that are classified as high risk.
c. Develop a point estimate of the proportion of funds that have a below-average risk rating.

Answer

a. 0.45
b. 0.15
c. 0.45

Discussion

You must be signed in to discuss.
bm

Biniam M.

January 28, 2021

b

bm

Biniam M.

January 28, 2021

Video Transcript

All right, So this question gives the data set, and it wants us to compute various point estimators for the population proportion. So part eh wants us to find point estimate for the proportion that our load funds. So that is just the number of load over the number of total because we're dealing with proportions, which in this case it's just 18 divided by 40 which gives us point for five. Then Part B wants us to find appoint estimate for the number of high risk phones. So that's number that are high risk over the total, which this time is equal to six over 40 which is 0.15 then part see wants the proportion of below average. So we want the number of funds that are below average risk over the total, which is in this case, 18 divided by 40 which is point for five