The rule of thumb stated on page 434 indicated that we would expect the sampling distribution of
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a. Use the following set of computer or calculator commands to see what happens. Try n = 15 and p = 0.1(K1 = n and K2 = p) Do the distributions look normal? Explain what causes the “gaps.”Why do the histograms look alike? Try some different combinations of n (K1) and p (K2):
b. Try and n = 15 p = 0.01.
c. Try and n = 50 p = 0.03 .
d. Try and n = 20 p = 0.2 .
e. Try and n = 20 p = 0.8 .
f. What happens when the rule of thumb is not followed?
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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