THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 85

Essay

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
Monthly rates of return on the shares of a particular common stock are independent of one another and normally distributed with a standard deviation of 1.8.A sample of 15 months is taken.
-Find the probability that the sample standard deviation is more than 1.2.

---

Definitions:

Equilibrium Price

The cost at which the amount of a product or service sought by buyers matches the amount offered by sellers, leading to a balanced market situation.

Average Total Cost

Average total cost is the total cost of production divided by the total quantity produced, representing the cost per unit of output.

Marginal Cost

The swell in aggregate expenditure tied to the creation of an extra unit of a product or service.

Average Variable Cost

The variable cost (cost that changes with production volume) per unit of output, calculated by dividing total variable costs by the number of units produced.