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Get Full Access to Mathematical Statistics With Applications - 7 Edition - Chapter 1 - Problem 4e
Get Full Access to Mathematical Statistics With Applications - 7 Edition - Chapter 1 - Problem 4e

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

ISBN: 9780495110811 47

Solution for problem 4E Chapter 1

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

Step 3 of 3

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