went down. The students then check to see whether their ated random numbers. The

Question

went down. The students then check to see whether their ated random numbers. The stocks were from a Journal in whichexa stock picks rose or fell the next day and report their proportion of successes Complete parts (a) through (dy bokow a) The students use computer-generated random numbers to choose 25 stocks each use the 68 Rule to describe the sampling distribution model About 68% should have proportions between and about 95% between and and about 99,7% between and Type integers or decimals.) b) Confirm that you can use a Normal model here. A Normal model be used here because np and nq Type integers or decimals.) c) They increase the number of stocks picked to 49 each Draw and label the appropriate sampling distribution model. Choose the comectsampling distributon model below 07 08 04 05 02 0.2 0.3 0.4 05 0.6 0.7 0.8 Click to select your answer(s). a Ask me anything acer

Explanation / Answer

Here n = 25 and proportion (p) is also given.

If np and nq > 10 then we use normal model.

About 68% should have proportions between mu-sigma and mu+sigma and 95% between mu-2sigma and mu+2sigma and 99.7% between mu-3sigma and mu+3sigma.

where mu = np

sigma = sqrt[(p*q)/n]

where q = 1-p

Here numbe rof stocks picked = 49

That is n is increased.

As n increases the distribution tends to normal.

Here first option is correct.

Conditions to check :

Samples are random and stock movements are independent. Both np and nq are greator than or equalto 10

Hence fourth option is correct.

The sampling distribution becomes wider as the number of stocks picked increases.

First option is correct.

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