TABLE 7-5 According to a Survey, Only 15% of Customers Who Visited

question 8

Short Answer

TABLE 7-5
According to a survey, only 15% of customers who visited the website of a major retail store made a purchase. Random samples of size 50 are selected.
-Referring to Table 7-5, what is the probability that a random sample of 50 will have at least 30% of customers who will make a purchase after visiting the website?

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Definitions:

Optimal Risky Portfolio

A portfolio that offers the highest expected return for a given level of risk, according to modern portfolio theory.

Risk Free Rate

The theoretical rate of return on an investment with no risk of financial loss, often represented by government bond yields.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, widely used in finance to gauge the volatility of an investment.

Probability Distribution

A statistical function that describes all the possible values and likelihoods that a random variable can take within a given range.