$$\text { TABLE 3-7 }$$ Given Below Is the Frequency Distribution of the 12-Month Rate

question 92

Short Answer

$$\text { TABLE 3-7 }$$
Given below is the frequency distribution of the 12-month rate of return achieved by 30 stocks.

$\begin{array} { l l } \hline \text { 12- month Rate of Return} & \text { Number of Funds}\\\hline- 0.10 \text { but less than } 0.0 & 3 \\ 0.0 \text { but less than } 0.1 & 5 \\ 01 \text { but less than } 0.2 & 6 \\ 0.2 \text { but less than } 0.3 & 10 \\ 0.3 \text { but less than } 0.4 & 6\\\hline \end{array}$
-Referring to Table 3-7, what is the approximate variance?

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Definitions:

Heuristics

Mental shortcuts or rules of thumb that simplify decision making, not always perfect but useful for practical problem-solving.

Persuasive

The ability to convince others to agree with a viewpoint, idea, or course of action through reasoning and argumentation.

Availability

The state of being able to be used or obtained; readiness for use.

Representativeness

A cognitive bias in decision making where the likelihood of an occurrence is evaluated based on how similar it is to stereotypes or typical cases.