The different interest rates charged by some financial institutions mayreflect how stringent their standards are for their loan appraisals: the lower the rate, thehigher the standards, and hence, the lower the default rate. The data below were collectedfrom a sample of eight financial companies selected at random.3 4 5 66.0 8.5 8.0 7.5 6.5457 87.047|2Financial companyInterest rate (in %) xDefault rate (in 1000 loans) y17.06.6485056584946al Find the least square regression line.b/ Perform the test Ho: Bi = 0, Ha: BI # 0 (using a = 0.05) to determine whether there isenough evidence to infer that a linear dependence exists between interest rate (x) anddefault rate (y).

Given: Sr. No. x y 1 7 48 2 6.6 50 3 6 45 4 8.5 56 5 8 58 6 7.5 49 7 6.5 46 8…

Answered: The different interest rates charged by…

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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4. Along with interest rates, life expectancy is a component in pricing financial annuities. Suppose that you know that last year average life expectancy was 77 years for your annuity holders. Now you want to know if your clients this year have a longer life expectancy, on average, so you randomly sample n=20 of your recently deceased annuity holders to see actual age at death. Using a 5% level of significance, test whether or not the new data shows evidence of your annuity holders now live longer than 77 years, on average. The data below are the sample data (in years of life): (78,75,83,81,81,77,78,79,79,81,76,79,77,76,79,81,73,74,78,79) a) Does this sample indicate that life expectancy has increased? Test an appropriate hypothesis and state your conclusion (use a 5% level of significance). Be sure to check the necessary assumptions and conditions before conducting your test. b) Construct A 90% confidence interval for the true average age of death for the population of your annuity…
(a) Use class intervals of $0 to <$3, $3 to <$6, $6 to <$9, etc., to create a relative frequency distribution for these data. (Round your answers for relative frequency to four decimal places.) Class Interval Frequency Relative Frequency $0 <$3 $3 <$6 $6 <$9 $9 <$12 $12- <$15 $15 <$18 $18 <$21 TOTAL (b) Construct a histogram. Frequency 14 12 10 8 6 4 Frequency 14 12 10 8 6 4 2 3 3 4 3 51 3 6 9 12 15 18 21 6 0.0588 9 0.0784 0.0588 12 15 18 21 Cost Cost Frequency 14 12 10 8 6 4 Frequency 15 10 5 3 6 9 3 6 9 12 15 18 21 12 15 18 Comment on its shape. O This is a unimodal distribution with a peak at the 0-3 class. The distribution is positively skewed. This is a bimodal distribution with peaks at the 12-15 and 18-21 classes. The distribution is negatively skewed. O This is a bimodal distribution with peaks at the 0-3 and 6-9 classes. The distribution is positively skewed. O This is a unimodal distribution with a peak at the 9-12 class. The distribution is reasonably symmetric. 21 Cost Cost…
Borrowing money may be necessary for business expansion. However, too much borrowed money can also mean trouble. Are developing countries tending to borrow more? A random sample of 20 developing countries gave the following information regarding foreign debt per capita (in U.S. dollars, inflation adjusted). (Reference: Handbook of International Economic Statistics, U.S. Government Documents.) Country 1 2 3 4 5 6 7 8 9 10 Modern Debt per Capita 175 152 125 124 95 83 34 29 21 89 Historic Debt per Capita 147 134 86 113 58 62 33 36 49 72 Country 11 12 13 14 15 16 17 18 19 20 Modern Debt per Capita 23 28 18 29 197 189 144 124 102 71 Historic Debt per Capita 24 12 12 29 106 156 145 119 118 76 Does this information indicate that foreign debt per capita is increasing in developing countries? Use a 0.01 level of significance. (a) What is the level of significance? Compute the sample test statistic. Find the P-value of the sample test statistic.
a. Set up a contingency table on education (X) and job satisfaction (Y). If needed, round yourpercentages to one decimal place (e.g., 10.4%) .b. Analyze the table to explain if there is a relationship between education and job satisfaction. Inyour answers, be sure to compare the percentages in each row
The Bank of Canada is interested in studying the relationship between mortgage rates and median home prices. The data is provided below Year interest rate (%) Median home price 1988 10.30 $183,800 1989 10.30 $183,200 1990 10.10 $174,900 1991 9.30 $173,500 1992 8.40 $172,900 1993 7.30 $173,200 1994 8.40 $173,200 1995 7.90 $169,700 1996 7.60 $174,500 1997 7.60 $177,900 1998 6.90 $188,100 1999 7.40 $203,200 2000 8.10 $230,200 2001 7.00 $258,200 2002 6.50 $309,800 2003 5.80 $329,800 2004 5.80 $431,000 2005 5.80 $515,000 2006 6.40 $537,000 2007 6.30 $496,000 2008 6.00 $352,000 2009 5.00 $232,000 2010 4.70 $291,700 2011 4.40 $262,900 2012 3.60 $299,200 2013 4.00 $321,200 2014 4.10 $373,500 2015 3.80 $358,100 2016 3.60 $382,500 2017 4.00 $402,900…
An investor is looking at past trends for three plans comparing dividends paid per share. She collects sample data from each plan to compare the average dividends paid per share. Let ? = 0.05. Plan 1 Plan 2 Plan 3 1.28 1.00 0.35 1.55 1.19 1.15 1.86 1.25 0.15 1.95 3.17 1.00 0.75 1.46 0.30 2.68 0.60 0.61 2.03 1.31 1.04 Groups Count Average Variance Plan 1 7 1.728571 0.375514 Plan 2 7 1.425714 0.667762 Plan 3 7 0.657143 0.164724 Source of Variation Sum of Squares df Mean Squares F P F crit Between Groups 4.2709 2 2.1354 5.3033 0.0155 3.5546 Within Groups 7.2480 18 0.4027 Total 11.5189 20 (a) What is the next step in the one-way ANOVA? There is not enough information, so collect more data.Stop, the results were not significant. The Tukey-Kramer post hoc test is not needed. Stop, the results were significant. The Tukey-Kramer post hoc test is not needed.Continue to the Tukey-Kramer post hoc test, as the results were…
The following data were taken from Miller Company's balance sheet: Dec. 31, Year 2 Dec. 31, Year 1 Total liabilities $150,000 $105,000 Total stockholders' equity 75,000 60,000 a. Compute the ratio of liabilities to stockholders' equity. Round your answers to one decimal place. Liabilities toStockholders' Equity 12/31/Year 2: fill in the blank 1 12/31/Year 1: fill in the blank 2 b. Has the creditors' risk increased or decreased from December 31, Year 1, to December 31, Year 2?
The less correlated the securities in a portfolio, Select one: O a the higher the diversifiable risk. O b. the higher the portfolio risk. O c. the lower the portfolio risk. Od the lower the unsystematic risk.
The following table shows the average yearly tuition and required fees, in thousand ofdollars, charged by a certain private university in the school year beginning in the givenyear.Year Average tuition2005 $17.6.2007 $18.12009 $19.52011 $20.72013 $21.8What prediction does the formula modeling this data give for average yearly tuition andrequired fees for the university for the academic year beginning in 2019?a)$21,994b)$24,565c) $25,040d)$20, 280e) None of the above.
Statista reports that the average monthly lease payment for an automobile is falling in the United States, but does this apply to all classes of automobiles?+ Suppose you are interested in whether this trend is true for sport utility vehicles (SUVS). Consider the following hypothetical monthly lease payment data for 33 randomly selected SUVs in 2015 and 46 randomly selected SUVs in 2016. 2015 692 684 550 549 769 602 633 674 781 674 $ 2016 546 576 711 501 770 506 718 589 743 605 530 734 927 661 658 387 446 658 742 556 393 502 433 587 605 562 641 432 498 552 489 697 718 646 764 659 566 749 482 450 588 526 521 478 570 603 627 484 379 565 Interpret the point estimate. Using the price ---Select--- 615 756 394 487 610 421 587 602 628 537 348 587 495 528 614 618 564 558 493 (a) Provide a point estimate (in $) of the difference between the population mean monthly lease payments for the two years. (Use SUVs in 2015 - SUVS in 2016. Round your answer to the nearest cent.) $ the 2015 ---Select---…
A sample of 35 liberal-arts graduates yielded the following starting annual salaries. Data are in thousands of dollars, rounded to the nearest hundred dollars. 49.0 45.8 50.3 49.6 50.0 47.7 51.8 47.3 46.7 47.0 48.1 50.1 43.6 48.0 47.7 49.8 46.4 46.1 48.5 48.9 48.2 48.1 46.2 47.3 51.7 49.0 48.2 49.9 48.1 49.8 49.5 50.4 45.3 45.3 46.5 Construct a stem-and-leaf plot on a separate sheet of paper and answer the following questions based on your plot. a) Yes or No, the stems range from 43 to 51, inclusive. b) Yes or No, The stem 44 has no values associated with it. c) Yes or No, There are no commas in my stem and leaf plot. c) What is the shape of the distribution?
The Bank of Canada is interested in studying the relationship between mortgage rates and median home prices. The data is provided below interest rate (%) 10.30 Year Median home price S183,800 $183,200 1988 1989 10.30 1990 10.10 $174,900 1991 9.30 S173,500 $172,900 $173,200 1992 8.40 1993 7.30 1994 8.40 $173,200 S169,700 S174,500 1995 7.90 1996 7.60 1997 7.60 $177,900 $188,100 S203,200 $230,200 $258,200 S309,800 1998 6.90 1999 7.40 2000 8.10 2001 7.00 2002 6.50 2003 5.80 $329,800 2004 5.80 $431,000 2005 2006 2007 $515,000 $537,000 $496,000 5.80 6.40 6.30 2008 6.00 $352,000 $232,000 $291,700 $262,900 2009 5.00 2010 4.70 2011 4.40 2012 2013 3.60 $299,200 4.00 $321,200 $373,500 $358,100 $382,500 $402,900 2014 4.10 2015 3.80 2016 3.60 2017 4.00 a) Estimate a simple linear regression model and find the value of the parameters for the estimation of mortgage rates and the median home price. b) Interpret the intercept and the slope coefficients c) State the correlation coefficient and the…

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