a) Interpret the numbers for a company that starts with a rating of Aab) Assume that the rating changes in successive time periods are independent; calculate the transition (sample) matrix for two years Consider the following one-year Ratings Transition (sample) matrix:InitialRating at Year-EndRatingAaABaaAaaAaa90.658.670.650.00Aa0.9589.448.950.54A0.062.5690.735.86Baa0.040.184.2090.27

Rating at the end of the year Initial Rating Aaa Aa A Baa Aaa 90.65 8.67 0.65 0 Aa…

a) Interpret the numbers for a company that starts with a rating of Aa b) Assume that the rating changes in successive time periods are independent; calculate the transition (sample) matrix for two years

a) Interpret the numbers for a company that starts with a rating of Aa b) Assume that the rating changes in successive time periods are independent; calculate the transition (sample) matrix for two years

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

See similar textbooks

Similar questions

signment%202.pdf - A Read aloud Draw 5. According to the Ameriprise Financial Money Across Generations study, 9 out of 10 parents with adult children ages 20 to 35 have helped their adult children with some type of financial assistance ranging from college, a car, rent, utilities, credit card debt, and/or down payments for houses. The following table with sample data consistent with the study 2|Page shows the number of times parents have given their adult children financial assistance to buy a car and to pay rent. Pay Rent Yes No Buy a car Yes 583 529 No 169 788 a. Develop a joint probability table and use it to answer the remaining questions. b. If parents did not provide financial assistance to buy a car, what it the probability that the parents assisted with paying rent? C. Is financial assistance to buy a car independent of financial assistance to pay rent? Use probabilities to justify your answer.
The following data shows the number of customers at a mall in Colorado. Year customers (in thousands) 2009 22,142 2010 23,983 2011 24,122 2012 25,708 2013 26,722 2014 26,955 2015 28,438 2016 29,786 2017 29,502 The mall security would like to predict the number of customers in the future. (***MUST USE EXCEL***) Use 2014-2017 as a hold out sample. Calculate the initial Level and Trend using all the data from 2009-2013. Utilize these as the starting point for updating based on seeing 2009 and carry it forward. Use Holt’s method (alpha=0.1,0.25; beta=0.1,0.25, total of four combinations) to forecast the demand for the hold out sample. Calculate the RMSE (square root of MSE), MAD, and TS for each forecast. Please round to the nearest 0.1. The RMSE for alpha = 0.1 and beta = 0.1 is _____. The MAD for alpha = 0.1 and beta = 0.25 is _____. The TS for alpha = 0.25 and beta = 0.25 in Year 2017 is _____.
According to the February 2008 Federal Trade Commission report on consumer fraud and identity theft, 23% of all complaints in 2007 were for identity theft. In that year, assume some state had 454 complaints of identity theft out of 1660 consumer complaints. Do these data provide enough evidence to show that the state had a higher proportion of identity theft than 23%? Test at the 10% level.
Is the Stock Market Independent?The Standard and Poor 500 (S&P 500) is a weighted average of the stocks for 500 large companies in the United States. It is commonly used as a measure of the overall performance of the US stock market. Between January 1, 2009 and January 1, 2012, the S&P 500 increased for 423 of the 756 days that the stock market was open. We will investigate whether changes to the S&P 500 are independent from day to day. This is important, because if changes are not independent, we should be able to use the performance on the current day to help predict performance on the next day. (a) What is the probability that the S&P 500 increased on a randomly selected market day between January 1, 2009 and January 1, 2012?Round your answer to four decimal places. (b) If we assume that daily changes to the S&P 500 are independent, what is the probability that the S&P 500 increases for two consecutive days?Round your answer to four decimal…
A manager wishes to build a 95%-level range chart for a process. The sample size of 10 samples is five, the mean of 16 sample means is 16.01, and the average range is 9. What are the UCL and LCL, respectively, for this range chart? O22.63 and 9.38 O 21.89 and 10.12 O 19.71 and 12.30 19.035 and 0. O 15.93 and 2.007
Security scans are often completed on computers in a particular college to assess the security risk from viruses etc. A sample of 120 computers which are considered at risk for viruses and other security issues are checked with a particular security scanner on a Monday and then monitored over the following week. The number of computers which broke down over the following week were recorded. The results are as follows: Security Scan (% Risk) Breakdown No Breakdown Low Risk (0 - 10%) 3 61 Slight/Moderate Risk (10 – 30%) 13 28 High Risk (>30%) 12 3 (i) Based on the above sample work out the probability that a computer in the college will breakdown. Input your answer correct to 4 decimal places here: (ii) Based on the above sample work out the probability that a computer has a low risk level OR doesn't breakdown. Input your answer correct to 4 decimal places here: (iii) Based on the above sample work out the probability that a computer has a high risk AND has a breakdown. Input your answer…
The most obese countries in the world have obesity rates that range from 11.4% to 74.6%. This data is summarized in the following table. Percent of Population Obese Number of Countries 11.4-20.45 29 20.45-29.45 14 29.45-38.45 38.45-47.45 47.45-56.45 2 56.45-65.45 65.45-74.45 1 74.45-83.45 1 (a) What is the best estimate of the average obesity percentage for these countries? (Round your answer to two decimal places.) 24.77 (b) The United States has an average obesity rate of 33.9%. Is this rate above average or below? (Round your answers to two decimal places.) Since the average for the United Sates is 33.9%, compared to the average obesity rate of 24.77 X %, the United States has an obesity rate 9.13 X % higher than average. (c) How does the United States compare to other countries? (Assume that the United States is included in the data. Assume the other countries in the range 29.45-38.45 have higher obesity than the United States.) O The United States has an obesity rate lower than…
Health care issues are receiving much attention in both academic and political arenas. A sociologist recently conducted a survey of citizens over 60 years of age whose net worth is too high to qualify for government health care but who have no private health insurance. The ages of 25 uninsured senior citizens were as follows:68,73,66,76,86,74,61,89,65,90,69,92,76,62,81,63,68,81,70,73,60,87,75,64,82 Suppose the mean and standard deviation are 74.0 and 9.7, respectively. If we assume that the distribution of ages is bell shaped, what percentage of the respondents will be between 64.3 and 93.4 years old? Group of answer choices
A city government administers a survey to voters regarding proposed legislation for local school funding. The results are shown in the relative frequency table. Voter Survey For Against Undecided Total Ages: 18-21 0.26 0.2 0.53 0.5 Ages: 22-32 0.15 0.11 0.11 0.04 Ages: 33-43 0.23 0.05 0.05 0.12 Ages: 44-54 0.18 0.48 0.18 0.14 Ages: Over 55 0.18 0.16 0.13 0.2 Total 1 1 1 1 The government wants to assure that the proposed legislation passes the public vote. In order to do this, the government wants to concentrate on the largest number of undecided voters. What age group should the government target? A. Ages: 18-21 B. Ages: 44-54 C. Ages: 22-32 D. Ages: 33-43
Mr. William Profit is studying companies going public for the first time. He is particularlyinterested in the relationship between the size of the offering and the price per share.A sample of 15 companies that recently went public revealed the following information.
company studied the number of lost-time accidents occurring at its Brownsville, Texas, plant. Historical records show that 8% of the employees suffered lost-time accidents last year. Management believes that a special safety program will reduce such accidents to 7% during the current year. In addition, it estimates that 15% of employees who had lost-time accidents last year will experience a lost-time accident during the current year. a. What percentage of the employees will experience lost-time accidents in both years (to 2 decimals)? % b. What percentage of the employees will suffer at least one lost-time accident over the two-year period (to 2 decimals)? %
The following table shows the assessed values and the selling prices of eight houses, constituting a random sam-ple of all the houses sold recently in a metropolitan area: Assessed value Selling price(thousands) (thousands)(of dollars) (of dollars)170.3 214.4202.0 269.3162.5 206.2174.8 225.0157.9 199.8181.6 232.1210.4 274.2188.0 243.5 (a) Fit a least squares line that will enable us to predictthe selling price of a house in that metropolitan area interms of its assessed value. (b) Test the null hypothesis β = 1.30 against the alterna-tive hypothesis β > 1.30 at the 0.05 level of significance.