Elementary Statistics: A Step By Step Approach
9th Edition
ISBN: 9780073534985
Author: Allan Bluman
Publisher: McGraw-Hill Science/Engineering/Math
expand_more
expand_more
format_list_bulleted
Question
Chapter 10, Problem 10.1.1RE
a.
To determine
To construct: The
a.
Expert Solution
Answer to Problem 10.1.1RE
The scatterplot for the data is as follows,
Explanation of Solution
Given info:
The data represents the weekly average number of passengers per flight and the average one-way fare in dollars for common commercial routes.
Calculation:
Software procedure:
Step by step procedure to obtain scatterplot using the MINITAB software:
- Choose Graph > Scatterplot.
- Choose Simple and then click OK.
- Under Y variables, enter a column of Avg. one-way fare.
- Under X variables, enter a column of Avg. no.of passengers.
- Click OK.
b.
To determine
To compute: The value of the
b.
Expert Solution
Answer to Problem 10.1.1RE
The value of the
Explanation of Solution
Calculation:
Correlation coefficient r:
Software Procedure:
Step-by-step procedure to obtain the ‘correlation coefficient’ using the MINITAB software:
- Select Stat >Basic Statistics > Correlation.
- In Variables, select Avg. number of passengers and Avg. one-way fare from the box on the left.
- Click OK.
Output using the MINITAB software is given below:
Thus, the value of the correlation is –0.686.
c.
To determine
To test: The significance of the correlation coefficient at
c.
Expert Solution
Answer to Problem 10.1.1RE
The conclusion is that, there is no linear relation between the Avg. number of passengers and Avg. one-way fare.
Explanation of Solution
Given info:
The level of significance is
Calculation:
The hypotheses are given below:
Null hypothesis:
That is, there is no linear relation between the Avg. number of passengers and Avg. one-way fare.
Alternative hypothesis:
That is, there is a linear relation between the Avg. number of passengers and Avg. one-way fare.
The formula to obtain the degrees of the freedom is
That is,
From the “TABLE –I: Critical Values for the PPMC”, the critical value for 4 degrees of freedom and
Rejection Rule:
If the absolute value of r is greater than the critical value then reject the null hypothesis.
Conclusion:
From part (b), the value of the correlation of Avg. number of passengers and Avg. one-way fare is –0.686. That is the absolute value of r is 0.686.
Here, the absolute value of r is less than the critical value.
That is,
By the rejection rule, the null hypothesis is not rejected.
Therefore, there is no sufficient evidence to support the claim that “there is a linear relation between the Avg. number of passengers and Avg. one-way fare”.
d.
To determine
To find: The regression equation for the given data
d.
Expert Solution
Answer to Problem 10.1.1RE
The regression equation for the given data is not valid.
Explanation of Solution
It is observed that the r is not significant.
Thus, the regression is not valid.
e.
To determine
To plot: The regression line on the scatter plot if appropriate.
e.
Expert Solution
Answer to Problem 10.1.1RE
The regression line cannot be plotted in the scatterplot.
Explanation of Solution
From part (d), it is observed that the regression line is not valid.
Thus, it is inappropriate to plot the regression line on the scatter plot.
f.
To determine
To predict: The value of y for a specific value of x if appropriate.
f.
Expert Solution
Answer to Problem 10.1.1RE
The value of y for a specific value of x is not possible.
Explanation of Solution
From part (d) the regression line is not valid.
Therefore it is not possible to predict the value of y for a specific value of x.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
1 No.
2
3
4
Binomial Prob.
X
n
P
Answer
5
6 4
7
8
9
10
12345678
8
3
4
2
2552
10
0.7
0.233
0.3
0.132
7
0.6
0.290
20
0.02
0.053
150
1000
0.15
0.035
8
7
10
0.7
0.383
11
9
3
5
0.3
0.132
12
10
4
7
0.6
0.290
13
Poisson Probability
14
X
lambda
Answer
18 4
19
20
21
22
23 9
15
16
17 3
1234567829
3
2
0.180
2
1.5
0.251
12
10
0.095
5
3
0.101
7
4
0.060
3
2
0.180
2
1.5
0.251
24 10
12
10
0.095
step by step on Microssoft on how to put this in excel and the answers please
Find binomial probability if:
x = 8, n = 10, p = 0.7
x= 3, n=5, p = 0.3
x = 4, n=7, p = 0.6
Quality Control: A factory produces light bulbs with a 2% defect rate. If a random sample of 20 bulbs is tested, what is the probability that exactly 2 bulbs are defective? (hint: p=2% or 0.02; x =2, n=20; use the same logic for the following problems)
Marketing Campaign: A marketing company sends out 1,000 promotional emails. The probability of any email being opened is 0.15. What is the probability that exactly 150 emails will be opened? (hint: total emails or n=1000, x =150)
Customer Satisfaction: A survey shows that 70% of customers are satisfied with a new product. Out of 10 randomly selected customers, what is the probability that at least 8 are satisfied? (hint: One of the keyword in this question is “at least 8”, it is not “exactly 8”, the correct formula for this should be = 1- (binom.dist(7, 10, 0.7,…
Kate, Luke, Mary and Nancy are sharing a cake. The cake had previously been divided into four slices (s1, s2, s3 and s4). What is an example of fair division of the cake
S1
S2
S3
S4
Kate
$4.00
$6.00
$6.00
$4.00
Luke
$5.30
$5.00
$5.25
$5.45
Mary
$4.25
$4.50
$3.50
$3.75
Nancy
$6.00
$4.00
$4.00
$6.00
Chapter 10 Solutions
Elementary Statistics: A Step By Step Approach
Ch. 10.1 - Stopping Distances In a study on speed control, it...Ch. 10.1 - What is meant by the statement that two variables...Ch. 10.1 - How is a linear relationship between two variables...Ch. 10.1 - What is the symbol for the sample correlation...Ch. 10.1 - What is the range of values for the correlation...Ch. 10.1 - What is meant when the relationship between the...Ch. 10.1 - Prob. 6ECh. 10.1 - What is the diagram of the independent and...Ch. 10.1 - What is the name of the correlation coefficient...Ch. 10.1 - What statistical test is used to test the...
Ch. 10.1 - When two variables are correlated, can the...Ch. 10.1 - For Exercises 11 through 27, perform the following...Ch. 10.1 - Prob. 12ECh. 10.1 - Prob. 13ECh. 10.1 - For Exercises 11 through 27, perform the following...Ch. 10.1 - For Exercises 11 through 27, perform the following...Ch. 10.1 - For Exercises 11 through 27, perform the following...Ch. 10.1 - Prob. 17ECh. 10.1 - Prob. 18ECh. 10.1 - Prob. 19ECh. 10.1 - For Exercises 11 through 27, perform the following...Ch. 10.1 - For Exercises 11 through 27, perform the following...Ch. 10.1 - For Exercises 11 through 27, perform the following...Ch. 10.1 - Prob. 23ECh. 10.1 - For Exercises 11 through 27, perform the following...Ch. 10.1 - Prob. 25ECh. 10.1 - Prob. 26ECh. 10.1 - Prob. 27ECh. 10.1 - Prob. 28ECCh. 10.1 - Prob. 29ECCh. 10.1 - Prob. 30ECCh. 10.2 - Applying the Concepts 102 Stopping Distances...Ch. 10.2 - What two things should be done before one performs...Ch. 10.2 - What are the assumptions for regression analysis?Ch. 10.2 - Prob. 3ECh. 10.2 - What is the symbol for the slope? For the y...Ch. 10.2 - Prob. 5ECh. 10.2 - When all the points fall on the regression line,...Ch. 10.2 - What is the relationship between the sign of the...Ch. 10.2 - As the value of the correlation coefficient...Ch. 10.2 - Prob. 9ECh. 10.2 - When the value of r is not significant, what value...Ch. 10.2 - For Exercises 11 through 27, use the same data as...Ch. 10.2 - Prob. 12ECh. 10.2 - For Exercises 11 through 27, use the same data as...Ch. 10.2 - For Exercises 11 through 27, use the same data as...Ch. 10.2 - For Exercises 11 through 27, use the same data as...Ch. 10.2 - For Exercises 11 through 27, use the same data as...Ch. 10.2 - Prob. 17ECh. 10.2 - Prob. 18ECh. 10.2 - Prob. 19ECh. 10.2 - For Exercises 11 through 27, use the same data as...Ch. 10.2 - For Exercises 11 through 27, use the same data as...Ch. 10.2 - For Exercises 11 through 27, use the same data as...Ch. 10.2 - For Exercises 11 through 27, use the same data as...Ch. 10.2 - For Exercises 11 through 27, use the same data as...Ch. 10.2 - Prob. 25ECh. 10.2 - Prob. 26ECh. 10.2 - For Exercises 11 through 27, use the same data as...Ch. 10.2 - Prob. 28ECh. 10.2 - Prob. 29ECh. 10.2 - For Exercises 28 through 33, do a complete...Ch. 10.2 - For Exercises 28 through 33, do a complete...Ch. 10.2 - For Exercises 28 through 33, do a complete...Ch. 10.2 - Prob. 33ECh. 10.2 - For Exercises 34 and 35, do a complete regression...Ch. 10.2 - For Exercises 34 and 35, do a complete regression...Ch. 10.2 - For Exercises 13, 15, and 21 in Section 101, find...Ch. 10.2 - Prob. 37ECCh. 10.2 - The value of the correlation coefficient can also...Ch. 10.3 - Applying the Concepts 103 Interpreting Simple...Ch. 10.3 - What is meant by the explained variation? How is...Ch. 10.3 - What is meant by the unexplained variation? How is...Ch. 10.3 - What is meant by the total variation? How is it...Ch. 10.3 - Define the coefficient of determination.Ch. 10.3 - How is the coefficient of determination found?Ch. 10.3 - Define the coefficient of nondetermination.Ch. 10.3 - How is the coefficient of nondetermination found?Ch. 10.3 - Prob. 8ECh. 10.3 - Prob. 9ECh. 10.3 - Prob. 10ECh. 10.3 - Prob. 11ECh. 10.3 - Prob. 12ECh. 10.3 - Prob. 13ECh. 10.3 - Prob. 14ECh. 10.3 - Prob. 15ECh. 10.3 - Compute the standard error of the estimate for...Ch. 10.3 - Compute the standard error of the estimate for...Ch. 10.3 - Compute the standard error of the estimate for...Ch. 10.3 - Prob. 19ECh. 10.3 - For the data in Exercises 14 in Sections 101 and...Ch. 10.3 - Prob. 21ECh. 10.3 - Prob. 22ECh. 10.4 - Applying the Concepts 104 More Math Means More...Ch. 10.4 - Explain the similarities and differences between...Ch. 10.4 - What is the general form of the multiple...Ch. 10.4 - Prob. 3ECh. 10.4 - Prob. 4ECh. 10.4 - How do the values of the individual correlation...Ch. 10.4 - Age, GPA, and Income A researcher has determined...Ch. 10.4 - Prob. 7ECh. 10.4 - Prob. 8ECh. 10.4 - Aspects of Students Academic Behavior A college...Ch. 10.4 - Age, Cholesterol, and Sodium A medical researcher...Ch. 10.4 - Explain the meaning of the multiple correlation...Ch. 10.4 - What is the range of values R can assume?Ch. 10.4 - Prob. 13ECh. 10.4 - What are the hypotheses used to test the...Ch. 10.4 - What test is used to test the significance of R?Ch. 10.4 - What is the meaning of the adjusted R2? Why is it...Ch. 10 - Prob. 10.1.1RECh. 10 - For Exercises 1 through 7, do a complete...Ch. 10 - Prob. 10.1.3RECh. 10 - For Exercises 1 through 7, do a complete...Ch. 10 - For Exercises 1 through 7, do a complete...Ch. 10 - For Exercises 1 through 7, do a complete...Ch. 10 - Prob. 10.1.7RECh. 10 - For Exercise 4, find the standard error of the...Ch. 10 - Prob. 10.2.9RECh. 10 - Prob. 10.2.10RECh. 10 - Prob. 10.2.11RECh. 10 - Prob. 10.2.12RECh. 10 - (Opt.) A study found a significant relationship...Ch. 10 - Prob. 10.2.14RECh. 10 - Prob. 10.2.15RECh. 10 - Prob. 1DACh. 10 - Prob. 2DACh. 10 - Prob. 3DACh. 10 - Prob. 1CQCh. 10 - Determine whether each statement is true or false....Ch. 10 - Determine whether each statement is true or false....Ch. 10 - Determine whether each statement is true or false....Ch. 10 - Determine whether each statement is true or false....Ch. 10 - Determine whether each statement is true or false....Ch. 10 - Prob. 7CQCh. 10 - Select the best answer. 8. To test the...Ch. 10 - Select the best answer. 9. The test of...Ch. 10 - Prob. 10CQCh. 10 - Prob. 11CQCh. 10 - Prob. 12CQCh. 10 - Complete the following statements with the best...Ch. 10 - Prob. 14CQCh. 10 - Prob. 15CQCh. 10 - Prob. 16CQCh. 10 - Prob. 17CQCh. 10 - Prob. 18CQCh. 10 - Prob. 19CQCh. 10 - Prob. 20CQCh. 10 - Prob. 21CQCh. 10 - Prob. 22CQCh. 10 - Prob. 23CQCh. 10 - For Exercise 20, find the 90% prediction interval...Ch. 10 - Prob. 25CQCh. 10 - Prob. 26CQCh. 10 - (Opt.) Find R when ryx1 = 0.561 and ryx2 = 0.714...Ch. 10 - Prob. 28CQCh. 10 - Prob. 1CTCCh. 10 - Prob. 2CTCCh. 10 - Prob. 3CTCCh. 10 - Prob. 4CTCCh. 10 - Product Sales When the points in a scatter plot...Ch. 10 - Prob. 6CTCCh. 10 - Prob. 7CTCCh. 10 - Product Sales When the points in a scatter plot...Ch. 10 - Prob. 9CTC
Knowledge Booster
Similar questions
- Faye cuts the sandwich in two fair shares to her. What is the first half s1arrow_forwardQuestion 2. An American option on a stock has payoff given by F = f(St) when it is exercised at time t. We know that the function f is convex. A person claims that because of convexity, it is optimal to exercise at expiration T. Do you agree with them?arrow_forwardQuestion 4. We consider a CRR model with So == 5 and up and down factors u = 1.03 and d = 0.96. We consider the interest rate r = 4% (over one period). Is this a suitable CRR model? (Explain your answer.)arrow_forward
- Question 3. We want to price a put option with strike price K and expiration T. Two financial advisors estimate the parameters with two different statistical methods: they obtain the same return rate μ, the same volatility σ, but the first advisor has interest r₁ and the second advisor has interest rate r2 (r1>r2). They both use a CRR model with the same number of periods to price the option. Which advisor will get the larger price? (Explain your answer.)arrow_forwardQuestion 5. We consider a put option with strike price K and expiration T. This option is priced using a 1-period CRR model. We consider r > 0, and σ > 0 very large. What is the approximate price of the option? In other words, what is the limit of the price of the option as σ∞. (Briefly justify your answer.)arrow_forwardQuestion 6. You collect daily data for the stock of a company Z over the past 4 months (i.e. 80 days) and calculate the log-returns (yk)/(-1. You want to build a CRR model for the evolution of the stock. The expected value and standard deviation of the log-returns are y = 0.06 and Sy 0.1. The money market interest rate is r = 0.04. Determine the risk-neutral probability of the model.arrow_forward
- Several markets (Japan, Switzerland) introduced negative interest rates on their money market. In this problem, we will consider an annual interest rate r < 0. We consider a stock modeled by an N-period CRR model where each period is 1 year (At = 1) and the up and down factors are u and d. (a) We consider an American put option with strike price K and expiration T. Prove that if <0, the optimal strategy is to wait until expiration T to exercise.arrow_forwardWe consider an N-period CRR model where each period is 1 year (At = 1), the up factor is u = 0.1, the down factor is d = e−0.3 and r = 0. We remind you that in the CRR model, the stock price at time tn is modeled (under P) by Sta = So exp (μtn + σ√AtZn), where (Zn) is a simple symmetric random walk. (a) Find the parameters μ and σ for the CRR model described above. (b) Find P Ste So 55/50 € > 1). StN (c) Find lim P 804-N (d) Determine q. (You can use e- 1 x.) Ste (e) Find Q So (f) Find lim Q 004-N StN Soarrow_forwardIn this problem, we consider a 3-period stock market model with evolution given in Fig. 1 below. Each period corresponds to one year. The interest rate is r = 0%. 16 22 28 12 16 12 8 4 2 time Figure 1: Stock evolution for Problem 1. (a) A colleague notices that in the model above, a movement up-down leads to the same value as a movement down-up. He concludes that the model is a CRR model. Is your colleague correct? (Explain your answer.) (b) We consider a European put with strike price K = 10 and expiration T = 3 years. Find the price of this option at time 0. Provide the replicating portfolio for the first period. (c) In addition to the call above, we also consider a European call with strike price K = 10 and expiration T = 3 years. Which one has the highest price? (It is not necessary to provide the price of the call.) (d) We now assume a yearly interest rate r = 25%. We consider a Bermudan put option with strike price K = 10. It works like a standard put, but you can exercise it…arrow_forward
- In this problem, we consider a 2-period stock market model with evolution given in Fig. 1 below. Each period corresponds to one year (At = 1). The yearly interest rate is r = 1/3 = 33%. This model is a CRR model. 25 15 9 10 6 4 time Figure 1: Stock evolution for Problem 1. (a) Find the values of up and down factors u and d, and the risk-neutral probability q. (b) We consider a European put with strike price K the price of this option at time 0. == 16 and expiration T = 2 years. Find (c) Provide the number of shares of stock that the replicating portfolio contains at each pos- sible position. (d) You find this option available on the market for $2. What do you do? (Short answer.) (e) We consider an American put with strike price K = 16 and expiration T = 2 years. Find the price of this option at time 0 and describe the optimal exercising strategy. (f) We consider an American call with strike price K ○ = 16 and expiration T = 2 years. Find the price of this option at time 0 and describe…arrow_forward2.2, 13.2-13.3) question: 5 point(s) possible ubmit test The accompanying table contains the data for the amounts (in oz) in cans of a certain soda. The cans are labeled to indicate that the contents are 20 oz of soda. Use the sign test and 0.05 significance level to test the claim that cans of this soda are filled so that the median amount is 20 oz. If the median is not 20 oz, are consumers being cheated? Click the icon to view the data. What are the null and alternative hypotheses? OA. Ho: Medi More Info H₁: Medi OC. Ho: Medi H₁: Medi Volume (in ounces) 20.3 20.1 20.4 Find the test stat 20.1 20.5 20.1 20.1 19.9 20.1 Test statistic = 20.2 20.3 20.3 20.1 20.4 20.5 Find the P-value 19.7 20.2 20.4 20.1 20.2 20.2 P-value= (R 19.9 20.1 20.5 20.4 20.1 20.4 Determine the p 20.1 20.3 20.4 20.2 20.3 20.4 Since the P-valu 19.9 20.2 19.9 Print Done 20 oz 20 oz 20 oz 20 oz ce that the consumers are being cheated.arrow_forwardT Teenage obesity (O), and weekly fast-food meals (F), among some selected Mississippi teenagers are: Name Obesity (lbs) # of Fast-foods per week Josh 185 10 Karl 172 8 Terry 168 9 Kamie Andy 204 154 12 6 (a) Compute the variance of Obesity, s²o, and the variance of fast-food meals, s², of this data. [Must show full work]. (b) Compute the Correlation Coefficient between O and F. [Must show full work]. (c) Find the Coefficient of Determination between O and F. [Must show full work]. (d) Obtain the Regression equation of this data. [Must show full work]. (e) Interpret your answers in (b), (c), and (d). (Full explanations required). Edit View Insert Format Tools Tablearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
MATLAB: An Introduction with ApplicationsStatisticsISBN:9781119256830Author:Amos GilatPublisher:John Wiley & Sons Inc
Probability and Statistics for Engineering and th...StatisticsISBN:9781305251809Author:Jay L. DevorePublisher:Cengage Learning
Statistics for The Behavioral Sciences (MindTap C...StatisticsISBN:9781305504912Author:Frederick J Gravetter, Larry B. WallnauPublisher:Cengage Learning
Elementary Statistics: Picturing the World (7th E...StatisticsISBN:9780134683416Author:Ron Larson, Betsy FarberPublisher:PEARSON
The Basic Practice of StatisticsStatisticsISBN:9781319042578Author:David S. Moore, William I. Notz, Michael A. FlignerPublisher:W. H. Freeman
Introduction to the Practice of StatisticsStatisticsISBN:9781319013387Author:David S. Moore, George P. McCabe, Bruce A. CraigPublisher:W. H. Freeman
MATLAB: An Introduction with Applications
Statistics
ISBN:9781119256830
Author:Amos Gilat
Publisher:John Wiley & Sons Inc
Probability and Statistics for Engineering and th...
Statistics
ISBN:9781305251809
Author:Jay L. Devore
Publisher:Cengage Learning
Statistics for The Behavioral Sciences (MindTap C...
Statistics
ISBN:9781305504912
Author:Frederick J Gravetter, Larry B. Wallnau
Publisher:Cengage Learning
Elementary Statistics: Picturing the World (7th E...
Statistics
ISBN:9780134683416
Author:Ron Larson, Betsy Farber
Publisher:PEARSON
The Basic Practice of Statistics
Statistics
ISBN:9781319042578
Author:David S. Moore, William I. Notz, Michael A. Fligner
Publisher:W. H. Freeman
Introduction to the Practice of Statistics
Statistics
ISBN:9781319013387
Author:David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:W. H. Freeman