Question

A survey of 143 investment managers revealed the following:

a. Do the following statements provide descriptive or non descriptive statistics?

43% of managers classified themselves as bullish or very bullish on the stock market.

The average expected return over the next 12 months for equities was 11.1%.

21% selected health care as the sector most likely to lead the market in the next 12 months.

When asked to estimate how long it would take for technology and telecom stocks to resume sustainable growth, the managers’ average response was 3.5 years.

b. Make an inference about the population of all investment managers concerning the average return expected on equities over the next 12 months. Round your answer to 1 decimal place if necessary.

c. Make an inference about the length of time it will take for technology and telecom stocks to resume sustainable growth. Round your answer to 1 decimal place if necessary. years

Answer 1

Ans:

a)

descriptive statements are:

43% of managers classified themselves as bullish or very bullish on the stock market.

21% selected health care as the sector most likely to lead the market in the next 12 months.

b) the average return estimate over next 12 months for the equities is 11.1% for the population of investment managers.

c)

The length of the time it will take for technology and telecom stocks to resume sustainable growth is estimated to be about 3.5 years by the managers.