Question

The S & P 500 is a collection of 500 stocks of publicly traded companies. Using...

The S & P 500 is a collection of 500 stocks of publicly traded companies. Using data obtained from Yahoo!Finance, the monthly rates of return of the S & P 500 from 1950 through 2015 are normally distributed. The mean rate of return is 0.007443 and the standard deviation is 0.04135.  

What is the probability that a randomly selected month has a positive rate of return? That is, what is P(X > 0)?

What is the probability that the mean monthly return for a five year period is positive? That is, for n = 60 months, what is P(the sample mean (x-bar) > 0)?

a.

0.16
b.

0.08
c.

0.50
d.

0.92
e.

0.84
Math   Statistics-And-Probability   
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