Question

In a large Business Statistics class, the professor has each person select stocks by using computer-generated random numbers. The stocks were from a Journal in which exactly half the publicly traded stocks went up and half went down. The students then check to see whether their stock picks rose or fell the next day and report their proportion of "successes." Complete parts (a) through (d) below.

A) The students use computer-generated random numbers to choose 16 stocks each. Use the 68-95-99.7 Rule to describe the sampling distribution model. About 68% should have proportions between __________ and ___________, about 95% between _________ and __________and about 99.7% between (Type integers or decimals.Type integers or decimals.)

B) Confirm that you can use a Normal model here. A Normal model (can or cannot) Select one be used here because np = __________ and np = _____________ (Type integers or decimals.)

C) Explain how the sampling distribution model changes as the number of stocks picked increases. Choose the correct answer below.

a) The sampling distribution becomes wider (more spread around the center) as the number of stocks increases

b) The sampling distribution becomes narrower (less spread around the center) as the number of stocks increases

c) The sampling distribution does not change as the number of stocks picked increases

Answer 1