DiGiorno's frozen pizza has some of the most creative and likeable advertisements on television. USA Today's Ad Track claims that 20% of viewers like the ads "a lot"" (Theresa Howard, "DiGiorno Campaign Delivers Major Sales," www.usatoday.com, April 1, 2002). Suppose that a sample of 400 television viewers is shown the advertisements. What is the probability that the sample will have between:
a. 18% and 22% who like the ads "a lot"?
b. 16% and 24% who like the ads "a lot"?
c. 14% and 26% who like the ads "a lot"?
d. 12% and 28% who like the ads "a lot"?
Question 2 (Basic Business Statistics Tenth Edition, Q 7.55).
Mutual funds reported modest earnings in the first quarter of 2004. International funds, which are historically slightly more volatile than U.S. funds, had a mean return of 5.13% (Michael J. Martinez, "Mutual-fund Returns Minimal in First Quarter," Cincinnati.com, April 3, 2004). Assume that the returns of international funds were distributed as a normal random variable with a mean of 5.13 and a standard deviation of 6. If you select an individual fund from this population, what is the probability that it would have a return
a. less than 0, that is, a loss?
b. between 0 and 6?
c. greater than 10?
If you selected a random sample of 10 funds from this population, what is the probability that the sample would have a mean return
d. less than 0, that is, a loss?
e. between 0 and 6?
f. greater than 10?
g. Compare your results in parts (d) through (f) to (a) through (c).
See attached file for full problem description.
Determination of Critical value, Significance level, p value for Z test.