Profit Margin An Investor Is Considering Two Types of Investment.She Is Quite

question 89

Essay

Profit Margin
An investor is considering two types of investment.She is quite satisfied that the expected profit margin on Investment 1 is higher than the expected profit margin on Investment 2.However,she is quite concerned that the risk associated with Investment 1 is higher than that of Investment 2.To help make her decision,she randomly selects seven monthly profit margins on investment 1 and ten monthly profit margins on investment 2.She finds that the sample variances of Investments 1 and 2 are 225 and 118,respectively. ​ ​
-{Profit Margin Narrative} Briefly describe what the interval estimate tells you.

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Definitions:

Rises

An increase, elevation, or improvement in position, level, or condition.

Falls

A decrease in a particular variable or measurement, often used in economic or financial contexts.

Total Cost

The complete cost of production that includes both fixed and variable costs.

Producing

The process of creating goods or services by combining various elements or resources.