Scenario: Suppose a financial institution holds a well diversified$35,500,000 position in stocks. The variance of this position inrelation to the overall S&P is equal to 1.95. Over the past yearthe average daily variation of the S&P is 160 basis points with astandard deviátion of 80 basis points. The z-score is 1.96.What is the stock value change that corresponds to a 95%probability that no stock changes will exceed this value?O 162.574 basis pointsO 465.76 basis pointsO 132 basis pointsQ 292 basis pointsScenario: Suppose a financial institution holds a well diversified$35,500,000 position in stocks. The variance of this position inrelation to thé overall S&P is equal to 1.95. Over the past yearthe average daily variation of the S&P is 160 basis points with astandard deviation of 80 basis points. The z-score is 1.96.What is the daily earnings at risk with 95% confidence?O $692,250O $284,000O $1,653,448O $568,000

Answered: Image /qna-images/answer/7142d48b-1dfe-44b0-8e2a-a6b3311514e3.jpg

Answered: O 162.574 basis points O 465.76 basis…

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...

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Q.4 Calculate the Variance and standard deviation from the following data Daily wages (Rs.) No. of workers 400-450 450-500 500-550 550-600 600-650 650-700 20 30 50 25 20 5
Suppose a car's city miles per gallon rating can be determined by the car's weight. The means and standard deviations of these variables and the correlation coefficient between them are reported in the following table: What proportion of the variability in cars' miles per gallon ratings is explained by the least squares line with weight?
A queueing system has an arrival rate of 37 visitors per day (standard deviation of 32) and a service rate of 42 visitors per day (standard deviation of 25). (Round your answer to three decimal places.) What is the coefficient of variation of the arrival rate?
Times for a surgical procedure are normally distributed. There are two methods. Method A has a mean of 21 minutes and a standard deviation of 5 minutes, while method B has a mean of 25 minutes and a standard deviation of 25 minutes. (a) Which procedure is preferred if the procedure must be completed within 23 minutes? O Method A O Method B O Either Method (b) Which procedure is preferred if the procedure must be completed within 32.0 minutes? O Method A O Method B O Either Method (c) Which procedure is preferred if the procedure must be completed within 29 minutes? OMethod A O Method B O Either Method Next Prey 19 of 19 here to search op t9 144 14 ou ts 47 47 to 40 16 is 券

Compute mean, variance, and standard deviation
13. STATEMENTS FIRST: CORRELATION CAN BE USED TO DETERMINE THE DEGREE OF RELATIONSHIP BETWEEN VARIABLES SECOND: COEFFICIENT CORRELATION RANGES FROM 0-1A. IF BOTH STATEMENTS ARE TRUEB. IF BOTH STATEMENTS ARE FALSEC. IF THE FIRST IS TRUE AND THE SECOND IS FALSED. IF THE FIRST IS FALSE AND THE SECOND IS TRUE 14. STATEMENTS FIRST; STANDARD DEVIATION IS THE SQUARE ROOT OF THE VARIANCE SECOND: DISPERSION GIVES US THE IDEA OF THE DEGREE OF SCATTERING OF THE DATA IN THE DISTRIBUTION A. IF BOTH STATEMENTS ARE TRUEB. IF BOTH STATEMENTS ARE FALSEC. IF THE FIRST IS TRUE AND THE SECOND IS FALSED. IF THE FIRST IS FALSE AND THE SECOND IS TRUE 15. CHARACTERISTICS OF THE NORMAL CURVEI. CURVE IS ASYMMETRICAL ABOUT MEANII. TAILS OF THE NORMAL CURVE ARE ASYMPTOTIC RELATIVE TO THE HORIZONTAL LINEIII. TOTAL AREA UNDER THE NORMAL CURVE IS EQUAL TO 1IV. NORMAL CURVE ARE SUBDIVIDED INTO THE THREE STANDARD DEVIATION A. I, II, AND III ONLYB. II, III, AND IV ONLYC. I, II, III, AND IVD. I, II, AND IV ONLYE. I,…
Two chemical companies can supply a raw material. The concentration of a particular element in this material is important. The mean concentration for both suppliers is the same, but you suspect that the variability in concentration may differ for the two companies. The standard deviation of concentration in a random sample of n₁ = 10 batches produced by company 1 is s₁ = 4.7 grams per liter, and for company 2, a random sample of n₂ = 16 batches yield s₂ = 5.8 grams per liter. Is there sufficient evidence to conclude that the two populations variances differ? Use a = 0.05. a. Because 0.321 < 0.657 <3.77, fail to reject the null hypothesis b. Because 0.265 < 0.657 <3.12, fail to reject the null hypothesis c. Because 0.386 < 0.657 <3.01, fail to reject the null hypothesis d. None among the choices
Part 1. .If b = 0.523, then for every 1 unit increase in the independent variable, there is a 0.523 unit increase in the dependent variable. True or false? 2. .If b = .704, then 70.4% of the variance in the dependent variable can be explained by the variance in the independent variable. In contrast, 29.6% of the variance in the dependent variable can be explained by outside factors. True or false? 3. .If r = 0.444, then for every 1 unit increase in the independent variable, there is a 0.444 unit increase in the dependent variable. True or false?
13
Colonial Funds claims to have a bond fund that has maintained a mean share price of $⁢10.00. They claim that the variance of the share price is 0.18. To test this claim, the investor randomly selects 29 days during the last year. He finds an average share price of $⁢9.80 with a standard deviation of 0.4006. Can the investor conclude that the share price of the bond fund varies from Colonial Funds claims at α=0.05? Step 1 of 5 : State of the hypotheses in terms of the standard deviation. Round the standard deviation to four decimal places when necessary Step 2 of 5 : Determine the critical value(s) of the test statistic. If the test is two-tailed, separate the values with a comma. Round your answer to three decimal places. Step 3 of 5 : Determine the value of the test statistic. Round your answer to three decimal places. Step 4 of 5 : Make the decision. Step 5 of 5 : What is the conclusion?
What is the value of n (the number of observations)? What is the value of Se (standard error for the model) (2 decimals)? What is the average of the x variable (2 decimals)? What is the variance of the x variable (1 decimal)?
P and A are independent, random variables. mean of P is 5 and its standard deviation is 3. mean of A is -2 and standard deviation is 6. what is mean of T= - 3P + 20 ? what is the mean of W= A - P? what is variance of D= P - 2A ?

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