## Related questions with answers

In a large Business Statistics class, the professor has each person select stocks by throwing 16 darts at pages of the Wall Street Journal. They then check to see whether their stock picks rose or fell the next day and report their proportion of "successes." As a lesson, the professor has selected pages of the Journal for which exactly half the publicly traded stocks went up and half went down. The professor then makes a histogram of the reported proportions.

d) Describe why a Normal model should not be used here.

Solution

VerifiedWe were given a situation where each person in a large Business Statistics class thew $n=16$ darts at the pages of the Wall Street Journal to select stocks. The pages are selected such that exactly half of publicly traded stocks went up and the other half went down. The students then report the proportion "successes" to the professor since they were asked to check if the stock pick rose or fell. A histogram was then made by the professor out of the reported proportions $\hat{p}$.

We were asked why a Normal model should not be used here.

## Create a free account to view solutions

## Create a free account to view solutions

## Recommended textbook solutions

#### Business Statistics: Communicating with Numbers

2nd Edition•ISBN: 9780078020551Alison Kelly, Sanjiv Jaggia#### Basic Business Statistics: Concepts and Applications

12th Edition•ISBN: 9780132168380 (2 more)David M. Levine, Mark L. Berenson, Timothy C. Krehbiel#### Basic Business Statistics: Concepts and Applications

13th Edition•ISBN: 9780321870025 (2 more)David M. Levine, Kathryn A. Szabat, Mark L. Berenson#### Business Statistics

3rd Edition•ISBN: 9780321925831 (2 more)Norean D. Sharpe, Paul Velleman, Richard D. De Veaux## More related questions

1/4

1/7