Week1DiscussionQuestions.docx
Section 1.1: Identify the kind of Sample Described
32) Raffle: Five hundred people attend a charity event, and each buys a raffle ticket. The 500 ticket stubs are put in a drum and thoroughly mixed, and 10 of them are drawn. The 10 people whose tickets are drawn win a prize.
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Section 3.2: 42.A
42) Stocks or bonds? Following are the annual percentage returns for the years 1996–2015 for three categories of investment: stocks, Treasury bills, and Treasury bonds. Stocks are represented by the Dow Jones Industrial Average.
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Year
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Stocks
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Bills
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Bonds
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Year
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Stocks
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Bills
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Bonds
|
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1996
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26.01
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5.02
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1.43
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2006
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16.29
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4.68
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1.96
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1997
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22.64
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5.05
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9.94
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2007
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6.43
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4.64
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10.21
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1998
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16.10
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4.73
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14.92
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2008
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−33.84
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1.59
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20.10
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1999
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25.22
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4.51
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−8.25
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2009
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18.82
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0.14
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−11.12
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2000
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−6.18
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5.76
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16.66
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2010
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11.02
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0.13
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8.46
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2001
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−7.10
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3.67
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5.57
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2011
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5.53
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0.03
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16.04
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2002
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−16.76
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1.66
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15.12
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2012
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7.26
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0.05
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2.97
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2003
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25.32
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1.03
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0.38
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2013
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26.50
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0.07
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−9.10
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2004
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3.15
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1.23
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4.49
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2014
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7.52
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0.05
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10.75
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2005
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−0.61
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3.01
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2.87
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2015
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−2.23
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0.21
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1.28
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Source: Federal Reserve
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a.
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The standard deviation of the return is a measure of the risk of an investment. Compute the population standard deviation for each type of investment. Which is the riskiest? Which is least risky?
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Shuralove1444
