Exam 3: Numerical Descriptive Measures

In a marketing class of 60 students, the mean and the standard deviation of scores was 70 and 5, respectively. Use Chebyshev's theorem to determine the number of students who scored less than 60 or more than 80.

What is the difference between Chebyshev's Theorem and the Empirical Rule?

A portfolio manager generates a 5% return in Year 1, a 12% return in Year 2, a negative 6% return in Year 3, and a return of 2% in Year 4. The annualized return for the entire period is the closest to ________.

What does the covariance measure?

The Sharpe ratio measures the extra reward per unit of risk.

The following data represent motor vehicle theft rates per 100,000 people for the cities of Detroit, Michigan, Newark, New Jersey, St. Louis, Missouri; Oakland, California; Atlanta, Georgia; and Fresno, California. These six cities had the highest per-capita motor vehicle theft rates in the nation. (See the Excel Data File.) A) What is the mean and median per capita theft rates of the above cities? B) Given that the standard deviation of the per capita crime rate in Detroit is 200 thefts per 100,000, use the empirical rule to calculate the probability Detroit has more than 1,800 thefts per 100,000 next year?

The mean absolute deviation (MAD) is a less effective measure of variation when compared with the average deviation from the mean.

A college professor collected data on the number of hours spent by his 100 students over the weekend to prepare for Monday's Business Statistics exam. He processed the data by Excel and the following incomplete output is available. The median is most likely to be ________.

What is an advantage of the correlation coefficient over the covariance?

The price to earnings ratio, also called the P/E ratio of a stock, is a measure of the price of a share relative to the annual net income per share earned by the firm. Suppose the P/Es for a firm's common stock during the past four quarters are 10, 12, 15, and 11, respectively. The standard deviation of the P/E ratio over the four quarters is ________.

The mean grade of the 30 students in Section 1 is 80. The mean grade of the 40 students in Section 2 is 85. The mean grade of the 30 students in Section 3 is 80. What is the mean grade of all students from the three sections combined?

The following data represent monthly returns (in percent): (See the Excel Data File.) The geometric mean return is the closest to ________.

The variance and standard deviation are the most widely used measures of central location.

Professors at a local university earn an average salary of $80,000 with a standard deviation of $6,000. The salary distribution is approximately bell-shaped. Because of budget limitations, it has been decided that only those whose salaries are approximately in the bottom 2.5% would get a raise. What is the maximum current salary that qualifies for the raise?

The mode is defined as the ________.

The median is not always the 50^th percentile.

Which of the following statements is most accurate when defining percentiles?

The ________ identifies the number of standard deviations a particular value is from the mean of its distribution.

The advantage of using mean absolute deviation rather than variance as a measure of dispersion is that mean absolute deviation ________.

The following gives summary measures for Google and Apple for Year 1-5. = 66% = 20% = 89% = 60.5% A) Which fund had the higher arithmetic average return? B) Which fund was riskier over this time period? C) Given a risk-free rate of 1%, which fund has the higher Sharpe ratio? What does this imply?