Mean MonthlyReturn (%)Time PeriodVariance of ReturnsBefore October 19871201.41622.367After October 19871201.43615.795A. Formulate null and alternative hypotheses consistent with the verbal description ofthe research goal.B. Identify the test statistic for conducting a test of the hypotheses in Part A.C. Determine whether or not to reject the null hypothesis at the 0.05 level ofsignificance. (Use the F-tables in the back of this volume.) 10. You are investigating whether the population variance of returns on the S&P 500/BARRA Growth Index changed subsequent to the October 1987 market crash. Yougather the following data for 120 months of returns before October 1987 and for 120months of returns after October 1987. You have specified a 0.05 level of significance.

Given : Claim : The population variance of returns on the S&P 500/ BARRA Growth Index changed…

Answered: 10. You are investigating whether the…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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You've observed the following returns on Mary Ann Data Corporation's stock over the past five years: 38.50 percent, 20.50 percent, 23.50 percent, -25.50 percent, and 12.50 percent. a. What was the arithmetic average return on Mary Ann's stock over this five-year period? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Arithmetic average return b-1. What was the variance of Mary Ann's returns over this period? (Do not round intermediate calculations. Round the final answer to 6 decimal places.) Variance b-2. What was the standard deviation? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Standard deviation %
7.
Use the data from the following four stocks to answer the questions below: Yields Year TLS DI PFE WMT 20x5 12.00% 4.50% 5.80% 11.30% 20x6 13.30% 5.30% 5.70% 9.00% 20x7 10.20% 3.10% 5.90% 13.90% 20x8 9.30% 2.70% 4.50% 14.80% 20x9 8.60% 1.90% 6.30% 15.00% a. Classify the correlations between each pair of stocks as positive correlation (PC), perfectly positive correlation (PPC), negative correlation (NC), perfectly negative correlation (PNC), and no correlation (NC): TLS – DI ___________ DI – PFE __________ TLS – PFE __________ DI – WMT _________ TLS – WMT _________ PFE – WMT _________
Under what circumstances would the trendline be significantly deviated by an outlier?
Suppose your expectations regarding the stock price are as detailed in the table below. Compute the mean and standard deviation of the holding period returns on stocks. State of the Market Probability Ending Price HPR (including dividends)Boom 0.23 $140 52.0%Normal growth 0.24 $110 19.0% Recession 0.53 $80 −11.5%
1. The data in Table 7–6 were collected in a clinical trial to evaluate a new compound designed to improve wound healing in trauma patients. The new compound was com- pared against a placebo. After treatment for 5 days with the new compound or placebo, the extent of wound healing was measured. Is there a difference in the extent of wound healing between the treatments? (Hint: Are treatment and the percent wound healing independent?) Run the appropriate test at a 5% level of significance. Use the data in Problem 1. Pool the data across the treatments into one sample of size n = 250. Use the pooled data to test whether the distribution of the percent wound healing is approximately normal. Specifically, use the following distribution 30%, 40%, 20%, and 10% and a = 0.05 to run the appropriate test. Percent Wound Healing Treatment 0-25% 26-50% 51-75% 76-100% New compound (n=125) 15 37 32 41 Placebo (n=125) 36 45 34 10

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