During a 5-week period in 2007, the stock of an insurance company and the stock of a
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Question:
During a 5-week period in 2007, the stock of an insurance company and the stock of a small tech company showed the following weekly percentage changes.
| Company | Weekly Price Change (%) | ||||
| Insurance Stock | 1.6 | -1.2 | -1.2 | -0.1 | 0.2 |
| Tech Stock | -2.8 | -4.3 | -2.6 | 1.8 | 2.6 |
Find the variance of the weekly price changes of each. (Round your answers to four decimal places.)
| insurance stock | ||
| tech stock |
Relate the two variances found to the riskiness of the two stocks.
1) The tech stock is riskier.No statement about the riskiness of these stocks can be made. The two stocks have the same riskiness.The insurance stock is riskier.
2) A probability distribution has a mean of 50 and a standard deviation of 10. Use Chebyshev's inequality to find the minimum probability that an outcome is between -10 and 110. (Round your answer to four decimal places.)
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