Socially conscious investors screen out stocks of alcohol and tobacco makers, firms with poor environmental records, and companies with poor labor practices. Someexamples of "good," socially conscious companies are Johnson and Johnson, Dell Computers, Bank of America, and Home Depot. The question is, are such stocksoverpriced? One measure of value is the P/E, or price-to-earnings ratio. High P/E ratios may indicate a stock is overpriced. For the S&P Stock Index of all major stocks,the mean P/E ratio is u 19.4. A random sample of 31 "socially conscious" stocks gave a P/E ratio sample mean of x 18.3, with sample standard deviation s = 4.2.At a 10% level of significance does this indicate that the mean P/E ratio of all socially conscious stocks is different (either way) from the mean P/E ratio of the S&P StockIndex?==What distribution will be used for this test? Student's tIs this test right-tailed, left-tailed, or two-tailed? two-tailedUsing the critical region method which curve represents this test: c(c) H₁: k(b) Η: μ > ΚRight-tailedTwo-tailed(a) H₁:

Given The data is as follows: μ=19.4 Sample size, n=31 Sample mean, x¯=18.3 Sample standard…

Answered: Socially conscious investors screen out…

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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Determine whether an observational or experimental study is appropriate to address the following statement. A general manager of a restaurant wants to study if her customer base is shrinking.
It is a 2 part question. How can we find normality?
Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2006, 9 of the 30 stocks making up the DJIA increased in price (The Wall Street Journal, February 1, 2006). On the basis of this fact, a financial analyst claims we can assume that 30% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day.A sample of 70 stocks traded on the NYSE that day showed that 17 went up.You are conducting a study to see if the proportion of stocks that went up is is significantly less than 0.3. You use a significance level of α=0.001α=0.001.What is the test statistic for this sample? (Report answer accurate to three decimal places.)test statistic = What is the p-value for this sample? (Report answer accurate to four decimal places.)p-value = The p-value is... less than (or equal to) αα greater than αα This test statistic and p-value lead to a decision to... reject the null accept…
Student Debt. The Association of American Universities published a report titled “Looking More Closely at Student Debt.” This report explores the issue about the cost of a college education and its impact on student loan debt. Using information from a credit reporting company, the following table provides a percentage distribution for the loan balance of outstanding student loans from individuals with graduate, professional, and undergraduate degree debt. Loan balance Percentage $1–$10,000 43.1 $10,001–$25,000 29.2 $25,001–$50,000 16.5 $50,001–$75,000 5.8 $75,001–$100,000 2.3 $100,001 or more 3.1 Suppose that one of these individuals is selected at random. a. Without using the general addition rule, determine the probability that the individual obtained has a loan balance either between $10,001 and $100,000, inclusive, or at most $75,000. b. Obtain the probability in part (a) by using the general addition rule. c. Which method…
Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2006, 9 of the 30 stocks making up the DJIA increased in price (The Wall Street Journal, February 1, 2006). On the basis of this fact, a financial analyst claims we can assume that 30% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day.A sample of 51 stocks traded on the NYSE that day showed that 8 went up.You are conducting a study to see if the proportion of stocks that went up is significantly less than 0.3. You use a significance level of α=0.001α=0.001.What is the test statistic for this sample? (Report answer accurate to three decimal places.)test statistic = What is the p-value for this sample? (Report answer accurate to four decimal places.)p-value = The p-value is... This test statistic leads to a decision to... As such, the final conclusion is that...
Profitability remains a challenge for banks and thrifts with less than $2 billion of assets. The business problem facing a bank analyst relates to the factors that affect return on assets (ROA), an indicator of how profitable a company is relative to its total assets. Data collected from a sample of 73 community banks include the ROA (%), the efficiency ratio (%), as a measure of bank productivity (the lower the efficiency ratio, the better), and total risk-based capital (%), as a measure of capital adequacy. Use the accompanying multiple linear regression results to complete parts (a) and (b) below. Variable Coefficient Standard Error 0.30408 0.00539 -0.24116 0.01953 0.04922 0.01517 Intercept Efficiency Ratio, X₁ Risk-Based Capital, X₂ t Statistic - 0.79 3.62 3.24 (Round to four decimal places as needed.) p-value 0.4304 0.0005 0.0018 C a. Construct a 95% confidence interval estimate of the population slope between ROA and efficiency ratio.
Profitability remains a challenge for banks and thrifts with less than $2 billion of assets. The business problem facing a bank analyst relates to the factors that affect return on assets (ROA), an indicator of how profitable a company is relative to its total assets. Data collected from a sample of 20 community banks include the ROA (%), the efficiency ratio (%), as a measure of bank productivity (the lower the efficiency ratio, the better), and total risk-based capital (%), as a measure of capital adequacy. Complete parts (a) through (g) below. Click the icon to view the data table. a. State the multiple regression equation. Let X₁, represent the efficiency ratio (%) and let X₂; represent the total risk-based capital (%). Ý TO DX DX = + + (Round the constant to two decimal places as needed. Round the coefficients to four decimal places as needed.) Distribution Costs ROA (%) 1.13 1.22 0.82 1.15 0.81 1.23 0.67 1.35 0.95 0.71 0.69 1.10 0.87 1.02 0.86 1.74 1.02 1.76 0.90 0.68 Efficiency…
Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2006, 9 of the 30 stocks making up the DJIA increased in price (The Wall Street Journal, February 1, 2006). On the basis of this fact, a financial analyst claims we can assume that 30% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day.A sample of 78 stocks traded on the NYSE that day showed that 26 went up.You are conducting a study to see if the proportion of stocks that went up is significantly more than 0.3. You use a significance level of α=0.01What is the test statistic for this sample? (Report answer accurate to three decimal places.)test statistic = What is the p-value for this sample? (Report answer accurate to four decimal places.)p-value = The p-value is... less than (or equal to) α greater than α This test statistic leads to a decision to... reject the null accept the null fail to reject…
An insurance company offers four different deductible levels-none, low, medium, and high-for its homeowner's policyholders and three different levels-low, medium, and high-for its automobile policyholders. The accompanying table gives proportions for the various categories of policyholders who have both types of insurance. For example, the proportion of individuals with both low homeowner's deductible and low auto deductible is 0.05 (5% of all such individuals). Homeowner's N L M н Auto L 0.04 0.05 0.05 0.02 M 0.07 0.11 0.20 0.11 0.02 0.03 0.15 0.15 Suppose an individual having both types of policies is randomly selected. (a) What is the probability that the individual has a medium auto deductible and a high homeowner's deductible? (b) What is the probability that the individual has a low auto deductible? A low homeowner's deductible? auto deductible homeowner's deductible (c) What is the probability that the individual is in the same category for both auto and homeowner's deductibles?…
4
An insurance company offers four different deductible levels—none, low, medium, and high—for its homeowner's policyholders and three different levels—low, medium, and high—for its automobile policyholders. The accompanying table gives proportions for the various categories of policyholders who have both types of insurance. For example, the proportion of individuals with both low homeowner's deductible and low auto deductible is 0.07 (7% of all such individuals). Homeowner's Auto N L M H L 0.04 0.07 0.05 0.01 M 0.07 0.08 0.20 0.13 H 0.02 0.03 0.15 0.15 Suppose an individual having both types of policies is randomly selected. (d) Based on your answer in part (c), what is the probability that the two categories are different?(e) What is the probability that the individual has at least one low deductible level?(f) Using the answer in part (e), what is the probability that neither deductible level is low?
An insurance company offers four different deductible levels-none, low, medium, and high-for its homeowner's policyholders and three different levels-low, medium, and high-for its automobile policyholders. The accompanying table gives proportions for the various categories of policyholders who have both types of insurance. For example, the proportion of individuals with both low homeowner's deductible and low auto deductible is 0.07 (7% of all such individuals). Auto L M H Homeowner's NLMH Suppose an individual having both types of policies is randomly selected. (a) What is the probability that the individual has a medium auto deductible and a high homeowner's deductible? 0.04 0.07 0.05 0.02 0.07 0.09 0.20 0.11 0.02 0.03 0.15 0.15 (b) What is the probability that the individual has a low auto deductible? A low homeowner's deductible? auto deductible homeowner's deductible (c) What is the probability that the individual is in the same category for both auto and homeowner's deductibles?…

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