Random Walk: Stocks Many economists and financial experts claim that the price level of a stock or bond is not random, but the price changes tend to follow a random sequence over time. The following data represent annual percentage returns on Vanguard Total Stock Index for a sequence of recent years. This fund represents nearly all publicly traded U.S. stocks. (Reference: Morningstar Mutual Fund Analysis.) 10.4 10.6 0.2 35.8 21.0 31.0 23.3 23.8 10.6 11.0 21.0 12.8 (i) Convert this sequence of numbers to a sequence of symbols A and B, where A indicates a value above the median and B a value below the median. (ii) Test the sequence for randomness about the median. Use a 0.05. 8.

Chapter 11 --- Means (Sampling Distribution, Confidence Intervals, Hypothesis Tests) Sampling Distribution of a Sample Mean Example 1: The Arm and Hammer Company wants to ensure that their laundry detergent actually contains 100 fluid ounces, as indicated on the label. Historical summaries from the filling process indicate the mean amount per container is 100 fluid ounces and the standard...