Suppose you want to build a diversified and risk-averse portfolio. However, there is one "dark horse"stock, which probability extent is difficult to predict. Some financial experts claim that the probabilityof this stock going up or down should be around 0.35 and others propose that potential decrease isdifferent from that value. Identify the potential Type Il error in this scenario.Oa.Falsely claiming that the stock would go down by 0.35, when, in fact, it differs from that valueO b. None of the aboveOc.Falsely claiming that the stock would go up by 0.35, when, in fact, it is lower than 0.35O d.Falsely claiming that the stock would decrease by the value different than 0.35, when, in fact,it is more than 0.35

Answered: Image /qna-images/answer/248e7207-5ae8-4479-98dc-0ec52d3ed4b6.jpg

Answered: Suppose you want to build a diversified…

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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An investment counselor calls with a hot stock dp. He beleves that if the economy remains strong, the Investment will result in a profit of $60,000. It the economy grows at a moderate pace, the Investment will result in a proft of $20,000. However, if the economy goes into recession, the investment will result in a loss of $00,000. You contact an economist who beleves there is a 20% probability the economy will remain strong, a 70% probability the economy will grow at a moderate pace, and a 106 probabilty the economy will slip into recession. What is the expected proftt from this investment? The expected proft is s (Type an integer or a decimal) Enter your answer in the answer box and then click Check Answer. All parts showing Clear All Check Anr can
In recent years research suggests that cell phone usage during social interactions leads to distractions, which undermines the benefits of social interaction. A recent report by greater good magazine reports that a survey shows that 82% of people report that the use of cell phones during a conversation decreases the quality and what they talk about. Assuming the greater good magazine report is accurate, and then a random sample of cell phone users during A recent conversation were sampled. You are interested in the probability that a specific number of the cell phones users would report that the use of cell phones during a conversation decreases the quality of what they talk about.
Organizers of an outdoor summer concert in Toronto are concerned about the weather conditions on the day of the concert. They will make a profit of $33,000 on a clear day and $15,000 on a cloudy day. They will make a loss of $7,000 if it rains. The weather channel has predicted a 52% chance of rain on the day of the concert. Calculate the expected profit from the concert if the likelihood is 11% that it will be sunny and 37% that it will be cloudy.
ANOTHER EXAMPLE• Consider the following information on returnsand probabilities: State Probability X ZBoom .25 15% 10%Normal .60 10% 9%Recession .15 5% 10% • What are the expected return and standarddeviation for a portfolio with an investmentof $6,000 in asset X and $4,000 in asset Z?
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A certain model phone costs $599. The probability of the phone breaking over the course of a year is .07. What is the maximum amount you could pay for phone replacement insurance and still have a non-negative expected value on the policy? In other words, for what price or below would it be worth it to get the insurance?
An airline is considering adding a route to the city of Buffalo, NY. Market research predicts that if the airline serves Buffalo, there is a 32% probability of making a $500,000 profit, a 22% chance of breaking even, and a 46% probability of losing $300,000. What is the expected value of adding a route to Buffalo?
In a recent year, the percentage of patients at a doctor's office who received a flu shot was 60%. A campaign by the doctors and nurses was designed to increase the percentage of patients who obtain a flu shot. The doctors and nurses believed there was an 80% chance that someone who received a shot in year 1 would obtain a shot in year 2. They also believed that there was a 40% chance that a person who did not receive a shot in year 1 would receive a shot in year 2. Complete parts (a) through (c) below. (a) Give the transition matrix for this situation. Set up the transition matrix P so that the first row and first column represent obtaining a flu shot and the second row and second column represent not obtaining a flu shot. P = (Type an integer or decimal for each matrix element.)
An investment counselor calls with a hot stock tip. He believes that if the economy remains strong, the investment will result in a profit of $40,000. If the economy grows at a moderate pace, the investment will result in a profit of $20,000. However, if the economy goes into recession, the investment will result in a loss of $40,000. You contact an economist who believes there is a 20% probability the economy will remain strong, a 70% probability the economy will grow at a moderate pace, and a 10% probability the economy will slip into recession. What is the expected profit from this investment?

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