Standard deviation of the sampling distribution problem


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

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Basic Statistics: Standard deviation of the sampling distribution problem
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