Solved: The Empirical Rule The following data represent

Fundamentals of Statistics | 4th Edition | ISBN: 9780321838704 | Authors: Michael Sullivan III

Problem 23AYU Chapter Chapter 3.2

Fundamentals of Statistics | 4th Edition

  • 2901 Step-by-step solutions solved by professors and subject experts
  • Get 24/7 help from StudySoup virtual teaching assistants
Fundamentals of Statistics | 4th Edition | ISBN: 9780321838704 | Authors: Michael Sullivan III

Fundamentals of Statistics | 4th Edition

4 5 0 234 Reviews
12
5
Problem 23AYU

The Empirical Rule The following data represent the weights (in grams) of a random sample of 50 M&M plain candies.

0.87

0.88

0.82

0.90

0.90

0.84

0.84

0.91

0.94

0.86

0.86

0.86

0.88

0.87

0.89

0.91

0.86

0.87

0.93

0.88

0.83

0.95

0.87

0.93

0.91

0.85

0.91

0.91

0.86

0.89

0.87

0.84

0.88

0.88

0.89

0.79

0.82

0.83

0.90

0.88

0.84

0.93

0.81

0.90

0.88

0.92

0.85

0.84

0.84

0.86

(a) Determine the sample standard deviation weight. Express your answer rounded to three decimal places.

(b) On the basis of the histogram drawn in Section, Problem, comment on the appropriateness of using the Empirical Rule to make any general statements about the weights of M&Ms.

(c) Use the Empirical Rule to determine the percentage of M&Ms with weights between 0.803 and 0.947 gram. Hint:  = 0.875.

(d) Determine the actual percentage of M&Ms that weigh between 0.803 and 0.947 gram, inclusive.

(e) Use the Empirical Rule to determine the percentage of M&Ms with weights more than 0.911 gram.

(f ) Determine the actual percentage of M&Ms that weigh more than 0.911 gram.

Problem

Rates of Return of Stocks Stocks may be categorized by industry. The data on the following page represent the 5-year rates of return (in percent) for a sample of consumer goods stocks and energy stocks ending November 10, 2010.

(a) Determine the mean and the median rate of return for each industry. Which sector has the higher mean rate of return? Which sector has the higher median rate of return?

(b) Determine the standard deviation for each industry. In finance, the standard deviation rate of return is called risk. Typically, an investor “pays” for a higher return by accepting more risk. Is the investor paying for higher returns in this instance? Do you think the higher returns are worth the cost?

CONSUMER GOODS STOCKS

9.83

10.11

11.06

9.32

7.5

8.66

13.7

15.04

17.24

16.83

6.22

8.86

11.79

9.64

-14.12

16.83

14.85

15.24

34.17

-8.32

0.52

Step-by-Step Solution:

Answer :

Step 1</p>

a)

First we need to find mean.

 = 

 = 

 = 0.766

Here standard deviation is

= 0.0012

Then the sample variance is

s=

s =

s = 0.036

Hence the sample variance is s = 0.036 gram.

b)

The histogram is given below.

The histogram is approximately symmetric, so the Empirical Rule is applicable.

c)

95% of the M&Ms should weigh between 0.803 and 0.947 gram.

d)

96% of the M&Ms actually weigh between 0.803 and 0.947 gram.

e)

16% of the M&Ms should weigh more than 0.911 gram.

f)

  12% of the M&Ms actually weigh more than 0.911 gram.

Problem

Step 2 of 2

Chapter Chapter 3.2, Problem 23AYU is Solved
Textbook: Fundamentals of Statistics
Edition: 4
Author: Michael Sullivan III
ISBN: 9780321838704

Unlock Textbook Solution

Enter your email below to unlock your verified solution to:

Solved: The Empirical Rule The following data represent

×
Log in to StudySoup
Get Full Access to Fundamentals Of Statistics - 4 Edition - Chapter Chapter 3.2 - Problem 23ayu

Forgot password? Reset password here

Join StudySoup for FREE
Get Full Access to Fundamentals Of Statistics - 4 Edition - Chapter Chapter 3.2 - Problem 23ayu
Join with Email
Already have an account? Login here
Reset your password

I don't want to reset my password

Need help? Contact support

Need an Account? Is not associated with an account
Sign up
We're here to help

Having trouble accessing your account? Let us help you, contact support at +1(510) 944-1054 or support@studysoup.com

Got it, thanks!
Password Reset Request Sent An email has been sent to the email address associated to your account. Follow the link in the email to reset your password. If you're having trouble finding our email please check your spam folder
Got it, thanks!
Already have an Account? Is already in use
Log in
Incorrect Password The password used to log in with this account is incorrect
Try Again

Forgot password? Reset it here