The Manager of 45 Sales People Examined Their Monthly Expenditures

question 63

Essay

The manager of 45 sales people examined their monthly expenditures on entertaining clients.He found that the mean amount was $237.50 with a standard deviation of $27.40.Assuming the data is bell-shaped,would a claim for the amount of $300 be considered unlikely? Why or why not?

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Definitions:

Behavioral Finance

A field of study that examines psychological influences and biases on the financial behaviors of investors and financial markets.

Irrationality

A decision-making process that deviates from logic or reason.

Cumulative Breadth

A technical analysis tool that measures the advancing and declining stocks on an exchange to assess market direction.

Bullish

A descriptive term for investor sentiment that believes a particular security or market is heading for an increase in prices.