7B

Question 1

Parameter

Answer 1

Any descriptive measure of a population charactertistic

Question 2

Sample Statistic

Answer 2

A measure from a sample used to estimate an unknown population paramenter

Question 3

Frequency Distribution

Answer 3

A tabular display of data summarized into a relatively small number of intervals, which cover all observations but each observation falls into its own interval

“The frequency distribution gives us a sense of not only where most of the observa- tions lie but also whether the distribution is evenly distributed, lopsided, or peaked.” Which is important because “Stock return data are frequently characterized by a few very large or small outcomes, info that is contained in the tails (extreme values) which “A portfolio manager or analyst may be equally interested in detailed information on the tails; “

“We can express the number of positive and negative outcomes as a percentage of the total to get a sense of the risk inherent in investing in the stock market. “

“We can also see that not many observations are greater than +12 percent or less than −12 percent. “ - which denotes where the tails of the distributions begin

Question 4

Absolute frequency (frequency)

Answer 4

The actual number of observations in a given interval