The mean of a data set is observed to be very different from its median, representing a strong skewness. However, the 1.5 IQR rule reveals that there are no outliers. Which of the following is correct, if the sample size is 100? a. A normal quantile plot of the data follows a diagonal line, and the t-procedure is appropriate to use.
b. A normal quantile plot of the data does not follow a diagonal line, and the t- procedure is not appropriate to use.
c. A normal quantile plot of the data follows a diagonal line, and the t-procedure is not appropriate to use.
d. A normal quantile plot of the data does not follow a diagonal line, and the t- procedure is appropriate to use.

a. A normal quantile plot of the data follows a diagonal line, and the t-procedure is appropriate to use.

Step-by-step explanation:

Central Limit Theorem

The Central Limit Theorem establishes that, for a normally distributed random variable X, with mean and standard deviation , the sampling distribution of the sample means with size n can be approximated to a normal distribution with mean and standard deviation .

For a skewed variable, the Central Limit Theorem can also be applied, as long as n is at least 30.

For a proportion p in a sample of size n, the sampling distribution of the sample proportion will be approximately normal with mean and standard deviation

In this question:

Sample size of 100 > 30, which means that we use the Central Limit Theorem, and thus, the sampling distribution is approximately normal, following a diagonal line, and since the standard deviation of the population is not know, we use the t-procedure. Thus, the correct answer is given by option a.

a

step-by-step explanation:

required rate of return = 0.166 = 16.6%

step-by-step explanation:

under the capital asset pricing model (capm), the required or expected rate of return for a particular security or asset is given using the formula:

required rate of return = risk-free rate + beta*(market risk premium)

we are given that;

risk-free rate = 4% = 0.04

beta = 1.4

market risk premium = 9% = 0.09

we simply plug these values into the above formula;

required rate of return = 0.04 + 1.4*(0.09)

required rate of return = 0.04 + 0.126

required rate of return = 0.166 = 16.6%