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Q10.
Expert-verifiedStock market. Give an example of a continuous random variable that would be of interest to a stockbroker.
Example: The time taken by a stockbroker for the completion of the transactions of the stocks.
The continuous random variables are those variables that take infinite values for which it is very difficult to count by anyone. The values of continuous random variables can fluctuate a lot.
The time taken for the completion of the transaction of stocks between two market participants through a stockbroker varies a lot. The variation in time depends upon the situation and the momentum of change in the stock prices, which means that it can take infinite values.
The Apprentice contestants’ performance ratings. Referto the Significance (April 2015) study of contestants’ performanceson the United Kingdom’s version of the TVshow, The Apprentice, Exercise 2.9 (p. 73). Recall thatthe performance of each of 159 contestants was rated ona 20-point scale. Contestants were also divided into twogroups: those who played for a job and those who playedfor a businesspartnership. These data (simulated, based onstatistics reportedin the article) are saved in the accompanyingfile. Descriptive statistics for each of the two groupsof contestants are displayed in the accompanying Minitabprintout.
a. Determine whether the performance ratings of contestantswho played for a job are approximately normallydistributed.
b. Determine whether the performance ratings of contestantswho played for a business partnership are approximatelynormally distributed.
Descriptive Statistics: Rating
Variable Rating | Price | N | Mean | St.Dev | Minimum | Q 1 | median | Q3 | Maximum | IQ R |
| Job | 99 | 7.879 | 4.224 | 1 | 4 | 9 | 11 | 20 | 7 |
| Partner | 60 | 8.883 | 4.809 | 1 | 5 | 8 | 12 | 20 | 7 |
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