Calculate VaR and expected shortfall (Part 1): Suppose that each of two investments hasa 3% chance of a loss of $10 million, a 7% chance of a loss of $3 million, and a 90%chance of a profit of $2 million. They are independent of each other. What is the VaRand the expected shortfall for one of the investments when the confidence level is 95%?Select one:O a. VaR=$10 million; Expected shortfall-$10 millionO b. VaR=$3 million; Expected shortfall-$7.2 millionOc. VaR $6.5 million; Expected shortfall-$6.5 millionO d. VaR=$3 million; Expected shortfall-$6.5 millionOe. VaR=$2 million; Expected shortfall-$6 million

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Answered: Calculate VaR and expected shortfall…

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 plan to find a confidence interval for the percentage of children who have speech delays. A small pilot study finds that 6% of children have speech delays. If you want a 90% confidence interval with a margin of error of 3%, what is the minimum sample size you must take?
You are estimating how much population A's proportion of answering yes to a question exceeds population B's proportion who say yes to the same question by using a confidence interval. You have some ability to control the width of your interval. Which of the following would be most likely to ensure that the confidence interval is narrowed? O a. You increase both sample sizes and you decrease your confidence level. O b. You increase both sample sizes and you increase your confidence level. OC. You decrease both sample sizes and you increase your confidence level. O d. You decrease both sample sizes and you decrease your confidence level.
Example 8.11 For a class project, a political science student at a large university wants to estimate the percent of students who are registered voters. He surveys 500 students and finds that 300 are registered voters. Compute a 90% confidence interval for the true percent of students who are registered voters, and interpret the confidence interval.
A psychologist is interested in constructing a 99% confidence interval for the proportion of people who accept the theory that a person's spirit is no more than the complicated network of neurons in the brain. 60 of the 805 randomly selected people who were surveyed agreed with this theory. Round answers to 4 decimal places where possible. a. With 99% confidence the proportion of all people who accept the theory that a person's spirit is no more than the complicated network of neurons in the brain is betweenand . b. If many groups of 805 randomly selected people are surveyed, then a different confidence interval would be produced from each group. About percent of these confidence intervals will contain the true population proportion of all people who accept the theory that a person's spirit is no more than the complicated network of neurons in the brain and about percent will not contain the true population proportion.
A psychologist is interested in constructing a 99% confidence interval for the proportion of people who accept the theory that a person's spirit is no more than the complicated network of neurons in the brain. 56 of the 700 randomly selected people who were surveyed agreed with this theory. Round answers to 4 decimal places where possible. a. With 99% confidence the proportion of all people who accept the theory that a person's spirit is no more than the complicated network of neurons in the brain is between and . b. If many groups of 700 randomly selected people are surveyed, then a different confidence interval would be produced from each group. About percent of these confidence intervals will contain the true population proportion of all people who accept the theory that a person's spirit is no more than the complicated network of neurons in the brain and about percent will not contain the true population proportion.
How would a 90% interval compare with the others in width? A. A 90% interval would be narrower than the 95% confidence interval but wider than the 80% confidence because intervals get narrower with increasing confidence level. B. A 90% interval would be wider than the 95% confidence interval but narrower than the 80% confidence because intervals get narrower with increasing confidence level C. A 90% interval would be wider than the 95% confidence interval but narrower than the 80% confidence because intervals get wider with increasing confidence level. D. A 90% interval would be narrower than the 95% confidence interval but wider than the 80% confidence because intervals get wider with increasing confidence level.
You create a 95% confidence interval for the proportion of a population. The confidence interval does not contain 0.10. This means that Group of answer choices a.You have evidence to conclude that the population proportion is equal to 0.10. b.You do not have evidence to conclude that the population proportion is equal to 0.10. c.You have evidence to conclude that the population proportion is not equal to 0.10. d.You do not have evidence to conclude that the population proportion is not equal to 0.10. e.The answer cannot be determined with the information given.
Which is true about a 95% confidence interval for a population proportion based on a given sample? A There is a 95% chance that the true sample proportion is in the middle of our interval. There is a 5% chance that our Interval does not contain the population proportion. C The Interval Is wider than a 90% confidence Interval would be. none of these is true.
You have a big exam tomorrow. You were planning to study tonight, but your friend has ticketsto a concert and has invited you to join her. Youwould be willing to accept a B on the exam inorder to go to the concert. You estimate that if youdon’t study you have a 35 percent chance of scoring a 90, a 35 percent chance of scoring an 80 (thescore required to earn a B), a 25 percent chance ofearning a 75, and a 5 percent chance of earning a60. Will you go to the concert? Explain why or whynot.

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