Assignment Two
Page 75, Problem 1.82
a) The deciles of the standard normal distribution are as follows: 1.28 is the point that
marks off the lowest 10% and 1.28 is the point that marks off the highest 10%. We found
these points by locating 10% and 90% in the Normal Tables and then we found the z
values that corresponded to these numbers.
The deciles of this distribution are as follows: 8.928 is the point that marks off the lowest
10% and 9.312 is the point that marks off the highest 10%.
Page 99, Problem 2.12
Stocks and Bonds
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The overall pattern shows that there is a negative relation between stocks and bonds
because most of the numbers lie in region 2 and region 4. The strength of the relationship
is very low, because the points do not follow a clear form.
Page 104, Problem 2.20
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a) The data shows a clear form, the points lie roughly in a straightline or a linear pattern.
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 Winter '08
 ZHANG
 Correlation, Normal Distribution, Scatter plot, standard normal distribution, Mean St. Dev, clear form

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