20 A following: survey of 13 l investment managersin Barron\'s Big Money poll re
ID: 3351268 • Letter: 2
Question
20 A following: survey of 13 l investment managersin Barron's Big Money poll revealed the 43% of anagers classified themselves as bullish or very bullish on the stock market. The average expected return over the next 12 months for equities was 11.2%, 21% sel to lead the market in the next 12 months. When asked ected healthcare as the sectormost likely to estimate how long it would take for technology and telecom stocks to resume sustainable growth the mana average response was 2,5 years. a. Cite two descriptive statistics the population of all investment managers concerning the Make an inference about average return expected on eques over of b. next 1 2 months c. Make an inference about the length of time it wj ogy and telecom stocks to resume sustainable growth.Explanation / Answer
a. Cite two descriptive statistics.
The word "descriptive" statistic applies to an estimate of a population parameter based upon a "sample" ...
1) 43% of managers classified themselves as bullish or very bullish on the stock market.
2) 21% selected health care as the sector most likely to lead the market in the next 12 months.
b. Make an inference about the population of all investment managers concerning the average return expected on equities over the next 12 months.
An inference is a "guess" about what is true about a population ...
The average expected return over the next 12 months for equities will be "greater than" 11.2%
c. Make an inference about the length of time it will take for technology and telecom stocks to resume sustainable growth.
It will take less than 2.5 years for technology and telecom stocks to resume sustainable growth.
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