Question
A consensus forecast is the average of a large number of individual analysts' forecasts. Suppose the...
A consensus forecast is the average of a large number of individual analysts' forecasts. Suppose the individual forecasts for a particular interest rate are normally distributed with a mean of 6 percent and a standard deviation of 1.3 percent. A single analyst is randomly selected. Find the probability that his/her forecast is
(a) At least 3.6 percent. (Round the z value to 2 decimal places. Round your answer to 4 decimal places.)
(b) At most 8 percent. (Round the z value to 2 decimal places. Round your answer to 4 decimal places.)
(c) Between 3.6 percent and 8 percent. (Round the z value to 2 decimal places. Round your answer to 4 decimal places.)
Homework Answers
Answer #1
Not the answer you're looking for?
Similar Questions
Financial analysts forecast Safeco Corp.’s (SAF) growth rate for the future to be 8 percent. Safeco’s...
Financial analysts forecast Safeco Corp.’s (SAF) growth rate for
the future to be 8 percent. Safeco’s recent dividend was $1.25.
What is the value of Safeco stock when the required return is 10
percent? (Round your answer to 2 decimal places.)
Use exponential smoothing, with alpha=0.2, to calculate the forecasts for percent utilization below. June's forecast was...
Use exponential smoothing, with alpha=0.2, to calculate the
forecasts for percent utilization below. June's forecast was 90%
utilization and actual usage was 94% utilization.
a.
Calculate the forecast of percent utilization for July.
(Round your final answer to 2 decimal places.)
Forecast for July
______percent of utilization
b.
If usage in July was 98 percent, calculate the forecast of
percent utilization for August. (Round your answer to 2
decimal places.)
Forecast for August
_____percent of capacity
Financial analysts forecast L Brands (LB) growth for the future to be 13.4 percent. LB's most...
Financial analysts forecast L Brands (LB) growth for the future
to be 13.4 percent. LB's most recent dividend was $2.20. What is
the fair present value of L Brands’s stock if the required rate of
return is 16.3 percent? (Do not round intermediate calculations.
Round your answer to 2 decimal places. (e.g., 32.16))
____
a. What is the duration of a two-year bond that pays an annual
coupon of 10.7 percent and has a current yield to maturity of 13.1...
Beer bottles are filled so that they contain an average of 455 ml of beer in...
Beer bottles are filled so that they contain an average of 455
ml of beer in each bottle. Suppose that the amount of beer in a
bottle is normally distributed with a standard deviation of 8 ml.
[You may find it useful to reference the z
table.]
a. What is the probability that a randomly
selected bottle will have less than 452 ml of beer? (Round
intermediate calculations to at least 4 decimal places,
“z” value to 2 decimal places,...
Beer bottles are filled so that they contain an average of 480 ml of beer in...
Beer bottles are filled so that they contain an average of 480
ml of beer in each bottle. Suppose that the amount of beer in a
bottle is normally distributed with a standard deviation of 8 ml.
[You may find it useful to reference the z
table.]
a. What is the probability that a randomly
selected bottle will have less than 474 ml of beer? (Round
intermediate calculations to at least 4 decimal places,
“z” value to 2 decimal places,...
(b) Develop the three-week moving average forecasts for this time series. (Round your answers to two...
(b)
Develop the three-week moving average forecasts for this time
series. (Round your answers to two decimal places.)
Week
Time Series
Value
Forecast
1
16
2
11
3
13
4
10
5
14
6
12
Compute MSE. (Round your answer to two decimal places.)
MSE =
What is the forecast for week 7?
(c)
Use α = 0.2 to compute the exponential smoothing
forecasts for the time series.
Week
Time Series
Value
Forecast
1
16
2
11
3
13
4...
Wildhorse Inc. has just paid a dividend of $3.80. An analyst forecasts annual dividend growth of...
Wildhorse Inc. has just paid a dividend of $3.80. An analyst
forecasts annual dividend growth of 9 percent for the next five
years; then dividends will decrease by 1 percent per year in
perpetuity. The required return is 12 percent (effective annual
return, EAR). What is the current value per share according to the
analyst? Round present value factor calculations to 5
decimal places, e.g. 1.54667 and other intermediate calculations to
3 decimal places, e.g.15.612. Round final answer to 2...
Suppose that the miles-per-gallon (mpg) rating of passenger cars is normally distributed with a mean and...
Suppose that the miles-per-gallon (mpg) rating of passenger cars
is normally distributed with a mean and a standard deviation of
33.4 and 3.4 mpg, respectively. [You may find it useful to
reference the z table.] a. What is the probability that a randomly
selected passenger car gets more than 34 mpg? (Round “z” value to 2
decimal places, and final answer to 4 decimal places.) b. What is
the probability that the average mpg of five randomly selected
passenger cars...
Suppose that the miles-per-gallon (mpg) rating of passenger cars is normally distributed with a mean and...
Suppose that the miles-per-gallon (mpg) rating of passenger cars
is normally distributed with a mean and a standard deviation of
36.5 and 4.4 mpg, respectively. [You may find it useful to
reference the z table.]
a. What is the probability that a randomly
selected passenger car gets more than 38 mpg? (Round
“z” value to 2 decimal places, and final answer to 4
decimal places.)
b. What is the probability that the average mpg
of three randomly selected passenger cars...
5. Suppose that the average number of Facebook friends users have is normally distributed with a...
5. Suppose that the average number of Facebook
friends users have is normally distributed with a mean of 125 and a
standard deviation of about 55. Assume fourteen individuals are
randomly chosen. Answer the following questions. Round all answers
to 4 decimal places where possible.
a. What is the distribution of x¯? x¯ ~ N( , ) ______
b. For the group of 14, find the probability that the average
number of friends is less than 107. ___
c. Find...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 27 minutes ago
asked 53 minutes ago
asked 53 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago