Suppose SAT Critical Reading scores are normally distributed with a mean of 404 and a standard deviation of 84. A university plans to recruit students whose scores are in the 90th    What is the minimum score required for recruitment?  Round your answer to the nearest whole number, if necessary.   Type your answer only in the box below.  Then show all work on your answer sheet.  If using a graphing calculator, the work shown on the answer sheet must show commands used.  Answers without work shown will result in the question being scored a 0.

Noise levels at 6 construction sites were measured in decibels yielding the following data: 135,125,124,135,121,168 Construct the 90% confidence interval for the mean noise level at such locations. Assume the population is approximately normal. You must show your work or explain your calculator speak.  Answers without one or the other will not be given full credit.   Provide answers to each of the following steps:Step 1. Calculate the sample mean for the given sample data. Round your answer to one decimal place.Answer: ____________________Step 2. Calculate the sample standard deviation for the given sample data. Round your answer to one decimal place.Answer: ____________________Step 3. Find the critical value that should be used in constructing the confidence interval. Round your answer to three decimal places.Answer: ____________________Step 4. Construct the 90% confidence interval. Round your answer to one decimal place.Answer: Lower endpoint: _______________ Upper endpoint: _______________ Type your answers only to these questions in the box below.  Then show all work on your answer sheet.  If using a graphing calculator, the work shown on the answer sheet must show commands used.  Answers without work shown will result in the question being scored a 0.

Suppose SAT Critical Reading scores are normally distributed with a mean of 404 and a standard deviation of 84.  A university plans to recruit students whose scores are in the 95th percentile.    What is the minimum score required for recruitment?  Round your answer to the nearest whole number, if necessary. Show all work.  Use the Type your answer only in the box below.  Then show all work on your answer sheet.  If using a graphing calculator, the work shown on the answer sheet must show commands used.  Answers without work shown will result in the question being scored a 0.

Suppose babies born in a large hospital have a mean weight of 4088 grams, and a variance of 55,696.If 128 babies are sampled at random from the hospital, what is the probability that the mean weight of the sample babies would be greater than 4132 grams? Round your answer to four decimal places. Type your answer only in the box below.  Then show all work on your answer sheet.  If using a graphing calculator, the work shown on the answer sheet must show commands used.  Answers without work shown will result in the question being scored a 0.

Susan has been on a bowling team for 14 years. After examining all of her scores over that period of time, she finds that they follow a normal distribution. Her average score is 225, with a standard deviation of 13.  If during a typical week Susan bowls 16 games, what is the probability that her average score for the week is between 220 and 228?  Type your answer only in the box below.  Then show all work on your answer sheet.  If using a graphing calculator, the work shown on the answer sheet must show commands used.  Answers without work shown will result in the question being scored a 0.

Stock A has an expected return of 11.4%, a beta of 1.2, and a standard deviation of 16%. Stock B has a beta of 1.0, expected return is 10% and its standard deviation is 20%. Portfolio AB has $300,000 invested in Stock A and $100,000 invested in Stock B. The correlation between the two stocks’ returns is zero (that is, rA,B = 0). Which of the following statements is CORRECT?

You have $80,000 invested in a mutual fund that closely replicates the S&P 500 Index.  Your new job offer has a $20,000 signing bonus that you will use to add to your investment portfolio.  All your bonus money will be invested in Johnson & Johnson (ticker: JNJ) which has a beta of 0.73.  Assume no other changes are made to your portfolio.   The risk free rate is 1.6% and the market risk premium is 8.84%.  How much will your required return increase or decrease if you make the investment in Johnson & Johnson?  

An investor can eliminate almost all market risk if he or she holds a very large and well diversified portfolio of stocks.

Jacob manages a $10.00 million mutual fund which has a beta of 1.05 and 9.50% required return. The risk-free rate is 4.20%. Jacob now receives another $5.00 million, which he invests in stocks with an average beta of 0.65. What is the portfolio’s beta after the additional investment is made?

Kuro’s stock price is currently $144.80 and its beta is 1.2.  It is widely accepted that the current risk-free rate is 3% and the market risk premium is 6%.  You believe that the stock price will be $157.70 in one year.  The company does not pay dividends.  Based on the given information, is Kuro’s stock currently undervalued?  Explain.