Section 1.1 identify the kind of sample described32) raffle fi
1. 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.
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.
Year
Stocks
Bills
Bonds
Year
Stocks
Bills
Bonds
1996
26.01
5.02
1.43
2006
16.29
4.68
1.96
1997
22.64
5.05
9.94
2007
4. −2.23
0.21
1.28
Source: Federal Reserve
a.
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?