Mathematical Statistics with Applications
7th Edition
ISBN: 9781111798789
Author: Dennis O. Wackerly
Publisher: Cengage Learning
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Chapter 10, Problem 116SE
To determine
Obtain the power of test when
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1 No.
2
3
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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
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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
Mathematical Statistics with Applications
Ch. 10.2 - Define and for a statistical test of hypotheses.Ch. 10.2 - An experimenter has prepared a drug dosage level...Ch. 10.2 - Refer to Exercise 10.2. a Find the rejection...Ch. 10.2 - Suppose that we wish to test the null hypothesis...Ch. 10.2 - Let Y1 and Y2 be independent and identically...Ch. 10.2 - We are interested in testing whether or not a coin...Ch. 10.2 - True or False Refer to Exercise 10.6. a The level...Ch. 10.2 - A two-stage clinical trial is planned for testing...Ch. 10.3 - A survey published in the American Journal of...Ch. 10.3 - The hourly wages in a particular industry are...
Ch. 10.3 - The output voltage for an electric circuit is...Ch. 10.3 - The Rockwell hardness index for steel is...Ch. 10.3 - Shear strength measurements derived from...Ch. 10.3 - Prob. 22ECh. 10.3 - Studies of the habits of white-tailed deer...Ch. 10.3 - A study by Childrens Hospital in Boston indicates...Ch. 10.3 - An article in American Demographics reports that...Ch. 10.3 - According to the Washington Post, nearly 45% of...Ch. 10.3 - The state of California is working very hard to...Ch. 10.3 - Prob. 28ECh. 10.3 - Prob. 29ECh. 10.3 - Prob. 30ECh. 10.3 - Prob. 31ECh. 10.3 - In March 2001, a Gallup poll asked. How would you...Ch. 10.3 - A political researcher believes that the fraction...Ch. 10.3 - Exercise 8.58 stated that a random sample of 500...Ch. 10.3 - Michael Sosin investigated determinants that...Ch. 10.3 - Prob. 36ECh. 10.4 - Refer to Exercise 10.19. If the voltage falls as...Ch. 10.4 - Refer to Exercise 10.20. The steel is sufficiently...Ch. 10.4 - Refer to Exercise 10.30. Calculate the value of ...Ch. 10.4 - Refer to Exercise 10.33. The political researcher...Ch. 10.4 - Refer to Exercise 10.34. Using the rejection...Ch. 10.4 - In Exercises 10.34 and 10.41, how large should the...Ch. 10.4 - A random sample of 37 second graders who...Ch. 10.4 - Refer to Exercise 10.43. Find the sample sizes...Ch. 10.5 - Refer to Exercise 10.21. Construct a 99%...Ch. 10.5 - Prob. 46ECh. 10.5 - Prob. 47ECh. 10.5 - Prob. 48ECh. 10.5 - Prob. 49ECh. 10.6 - High airline occupancy rates on scheduled flights...Ch. 10.6 - Two sets of elementary schoolchildren were taught...Ch. 10.6 - A biologist has hypothesized that high...Ch. 10.6 - How would you like to live to be 200 years old?...Ch. 10.6 - Do you believe that an exceptionally high...Ch. 10.6 - A check-cashing service found that approximately...Ch. 10.6 - Prob. 56ECh. 10.6 - Prob. 57ECh. 10.6 - Prob. 58ECh. 10.8 - Why is the Z test usually inappropriate as a test...Ch. 10.8 - Prob. 62ECh. 10.8 - A chemical process has produced, on the average,...Ch. 10.8 - A coin-operated soft-drink machine was designed to...Ch. 10.8 - Operators of gasoline-fueled vehicles complain...Ch. 10.8 - Researchers have shown that cigarette smoking has...Ch. 10.8 - Nutritional information provided by Kentucky Fried...Ch. 10.8 - Prob. 68ECh. 10.8 - Two methods for teaching reading were applied to...Ch. 10.8 - A study was conducted by the Florida Game and Fish...Ch. 10.8 - Under normal conditions, is the average body...Ch. 10.8 - Prob. 72ECh. 10.8 - In Exercise 8.83, we presented some data collected...Ch. 10.8 - Prob. 74ECh. 10.8 - Prob. 75ECh. 10.8 - Prob. 76ECh. 10.8 - Prob. 77ECh. 10.9 - A manufacturer of hard safety hats for...Ch. 10.9 - Prob. 79ECh. 10.9 - Prob. 80ECh. 10.9 - Prob. 81ECh. 10.9 - Exercises 8.83 and 10.73 presented some data...Ch. 10.9 - Prob. 83ECh. 10.9 - An experiment published in The American Biology...Ch. 10.9 - Prob. 85ECh. 10.9 - Aptitude tests should produce scores with a large...Ch. 10.9 - Prob. 87ECh. 10.10 - Refer to Exercise 10.2. Find the power of the test...Ch. 10.10 - Prob. 89ECh. 10.10 - Refer to Exercise 10.5. a Find the power of test 2...Ch. 10.10 - Let Y1, Y2,, Y20 be a random sample of size n = 20...Ch. 10.10 - Consider the situation described in Exercise...Ch. 10.10 - For a normal distribution with mean and variance...Ch. 10.10 - Suppose that Y1, Y2, ,Yn constitute a random...Ch. 10.10 - Prob. 95ECh. 10.10 - Prob. 96ECh. 10.10 - Prob. 97ECh. 10.10 - Prob. 98ECh. 10.10 - Prob. 99ECh. 10.10 - Prob. 100ECh. 10.10 - Prob. 101ECh. 10.10 - Prob. 102ECh. 10.10 - Prob. 103ECh. 10.10 - Refer to the random sample of Exercise 10.103. a...Ch. 10.11 - Let Y1, Y2,, Yn denote a random sample from a...Ch. 10.11 - A survey of voter sentiment was conducted in four...Ch. 10.11 - Prob. 107ECh. 10.11 - Prob. 108ECh. 10.11 - Let X1, X2,, Xm denote a random sample from the...Ch. 10.11 - Show that a likelihood ratio test depends on the...Ch. 10.11 - Suppose that we are interested in testing the...Ch. 10.11 - Prob. 112ECh. 10.11 - Refer to Exercise 10.112. Show that in testing of...Ch. 10.11 - Prob. 114ECh. 10 - True or False. a If the p-value for a test is...Ch. 10 - Prob. 116SECh. 10 - Prob. 117SECh. 10 - Prob. 118SECh. 10 - Prob. 119SECh. 10 - Prob. 120SECh. 10 - Prob. 121SECh. 10 - Prob. 122SECh. 10 - A pharmaceutical manufacturer purchases a...Ch. 10 - Prob. 124SECh. 10 - Prob. 125SECh. 10 - Prob. 126SECh. 10 - Prob. 127SECh. 10 - Prob. 128SECh. 10 - Prob. 129SECh. 10 - Prob. 130SE
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- 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
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