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The top 40 stocks on the over-the-counter (OTC) market,

Mathematical Statistics with Applications | 7th Edition | ISBN: 9780495110811 | Authors: Dennis Wackerly; William Mendenhall; Richard L. Scheaffer ISBN: 9780495110811 47

Solution for problem 4E Chapter 1

Mathematical Statistics with Applications | 7th Edition

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Mathematical Statistics with Applications | 7th Edition | ISBN: 9780495110811 | Authors: Dennis Wackerly; William Mendenhall; Richard L. Scheaffer

Mathematical Statistics with Applications | 7th Edition

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Problem 4E

Problem 4E

The top 40 stocks on the over-the-counter (OTC) market, ranked by percentage of outstanding shares traded on one day last year are as follows:

a Construct a relative frequency histogram to describe these data.

b What proportion of these top 40 stocks traded more than 4% of the outstanding shares?

c If one of the stocks is selected at random from the 40 for which the preceding data were taken, what is the probability that it will have traded fewer than5%of its outstanding shares?

Step-by-Step Solution:
Step 1 of 3

Solution 4E

Step1 of 4:

Let us consider a random variable X it presents the top stocks on the over the counter market, ranked by percentage of outstanding shares traded on one day last year are as follows:

x

11.8

6.27

5.49

4.81

4.4

3.78

3.44

3.11

2.88

2.68

7.99

6.07

5.26

4.79

4.05

3.69

3.36

3.03

2.74

2.63

7.15

5.98

5.07

4.55

3.94

3.62

3.26

2.99

2.74

2.62

7.13

5.91

4.94

4.43

3.93

3.48

3.2

2.89

2.69

2.61

Here our goal is:

a). We need to construct a relative frequency histogram to describe these data.

b). We need to find the proportion of these top 40 stocks traded more than 4% of the outstanding shares.

c). We need to find the probability that it will have traded fewer than 5% of its outstanding shares, when one of the stocks is selected at random from the 40 for which the preceding data were taken.


Step2 of 4:

a).

The given data can be rewrite in the form of Class interval

C.I.

X(Midpoint)

Frequency(f)

Relative frequency

2.61-3.93

3.27

20

0.5

3.93-5.25

4.59

10

0.25

5.25-6.57

5.91

6

0.15

6.57-7.89

7.23

2

0.05

7.89-9.21

8.55

1

0.025

9.21-10.53

9.87

0

0

10.53-11.85

11.19

0

0

11.85-13.17

12.51

1

       0.025

 

 

40

 

 

Where,

1). Midpoint(X) can be calculated by using C.I. that is:

      1

Step 2 of 3

Chapter 1, Problem 4E is Solved
Step 3 of 3

Textbook: Mathematical Statistics with Applications
Edition: 7
Author: Dennis Wackerly; William Mendenhall; Richard L. Scheaffer
ISBN: 9780495110811

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The top 40 stocks on the over-the-counter (OTC) market,