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Find the indicated probability and interpret the result From 1975 through 2020, the mean annual gain of the Dow Jones Industrial Average was 651 . A random sample of 35 years is selected from this population. What is the probability that the mean gain for the sample was between 500 and 700 ? Assume σ=1540. The probability is 0.2937 (Round to four decimal places as needed) Interpret the result Select the correct choice and fill in the answer box to complete your choice. (Round to two decimal places as needed)

A. About % of samples of 35 years will have an annual mean gain between 500 and 700 .
B. About % of samples of 35 years will have an annual mean gain between 651 and 700 .
C. About % of samples of 35 years will have an annual mean gain between 500 and 651 .
D. About % of samples of 46 years will have an annual mean gain between 500 and 700 .

User Tbert
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Final answer:

To find the probability that the mean gain for a random sample of 35 years was between 500 and 700, we need to standardize the values and use a standard normal distribution table or a calculator. The probability is 0.2936, which means that approximately 29.37% of samples of 35 years will have an annual mean gain between 500 and 700.

Step-by-step explanation:

To find the probability that the mean gain for a random sample of 35 years was between 500 and 700, we need to standardize the values using the formula z = (x - μ) / (σ / sqrt(n)). Here, x = 500, μ = 651, σ = 1540, and n = 35. Plugging in these values, we get z1 = (500 - 651) / (1540 / sqrt(35)) and z2 = (700 - 651) / (1540 / sqrt(35)). Using a standard normal distribution table or a calculator, we can find the probabilities associated with these z-values. The probability that the mean gain for the sample was between 500 and 700 is the difference between these two probabilities.

Using a standard normal distribution table or a calculator, we find that the z1-value corresponds to a probability of 0.1963 and the z2-value corresponds to a probability of 0.4899. Therefore, the probability that the mean gain for the sample was between 500 and 700 is 0.4899 - 0.1963 = 0.2936 (rounded to four decimal places).

The result can be interpreted as follows: Approximately 29.37% of samples of 35 years will have an annual mean gain between 500 and 700.

User Dotbit
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