A Normally Distributed Population with 200 Elements Has a Mean

question 16

Multiple Choice

A normally distributed population with 200 elements has a mean of 60 and a standard deviation of 10. The probability that the mean of a sample of 25 elements taken from this population will be smaller than 56 is:

• A) 0.0166 .
• B) 0.0228 .
• C) 0.3708 .
• D) 0.0394 .

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Definitions:

Fairly Priced

A term indicating that an asset's selling price is considered to be in line with its intrinsic value.

Homogeneous Expectations

An assumption in finance that all investors have the same expectations regarding the future rates of return, volatilities, and correlations of securities.

Economic View

A perspective or analysis based on economic indicators, trends, and policies to understand or predict economic outcomes.

CAPM

The Capital Asset Pricing Model, a theory that describes the relationship between the risk of an investment and its expected return.