Solve the Problem. -The Ages (In Years) of the Four U.S. Vice Presidents

question 231

Essay

Solve the problem.
-The ages (in years) of the four U.S. vice presidents who assumed office after presidential assassinations are
56 (A. Johnson), 51 (C. Arthur), 42 (T. Roosevelt), and 55 (L.B. Johnson). (i) Assuming that 2 of the ages are
randomly selected with replacement, list the 16 different possible samples. (ii) Find the range of each of the 16
samples, then summarize the sampling distribution of the ranges in the format of a table representing the
probability distribution. (iii) Compare the population range to the mean of the sample ranges. (iv) Do the
sample ranges target the value of the population range? In general, do sample ranges make good estimators of
population ranges? Why or why not?

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Definitions:

Mean-Variance Efficient

Mean-Variance Efficient describes an investment portfolio which maximizes returns for a given amount of risk or minimizes risk for a given level of expected return.

Single-Index Structure

A model in finance that relates the return of an asset to a single market index, representing the asset's sensitivity to movements in the market.

Covariances

A measure of how two variables move together, indicating the degree to which they are related.

Regression Equation

An equation that represents the relationship between a dependent variable and one or more independent variables.