# Sample Distribution - New York Stock Exchange

This question has to deal with the sampling distribution of the sample mean.

Please see attached file for full problem description.

Suppose that the percentage returns for a given year for all stocks listed on the New York Stock Exchange are approximately normally distributed with a mean of 12.4% and a standard deviation of 20.6%. Consider drawing a random sample of n=5 stocks from the population of all stocks and calculating the mean return, x, of the sampled stocks. Find the mean and the standard deviation of the sampling distribution of x, and find an interval containing 95.44% of all possible sample mean returns.

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#### Solution Summary

Suppose that the percentage returns for a given year for all stocks listed on the New York Stock Exchange are approximately normally distributed with a mean of 12.4% and a standard deviation of 20.6%. Consider drawing a random sample of n=5 stocks from the population of all stocks and calculating the mean return, x, of the sampled stocks. Find the mean and the standard deviation of the sampling distribution of x, and find an interval containing 95.44% of all possible sample mean returns.