Intro Stats
4th Edition
ISBN: 9780321826275
Author: Richard D. De Veaux
Publisher: PEARSON
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Chapter 10, Problem 17E
In Exercises 17 to 23, for the reports about statistical studies, identify the following items (if possible). If you can’t tell, then say so—this often happens when we read about a survey.
- a) The population
- b) The population parameter of interest
- c) The sampling frame
- d) The sample
- e) The sampling method, including whether or not randomization was employed
- f) Who (if anyone) was left out of the study
- g) Any potential sources of bias you can detect and any problems you see in generalizing to the population of interest
17. Medical treatments Consumers Union asked all subscribers whether they had used alternative medical treatments and, if so, whether they had benefited from them. For almost all of the treatments, approximately 20% of those responding reported cures or substantial improvement in their condition.
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Question 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?
Question 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.)
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.)
Chapter 10 Solutions
Intro Stats
Ch. 10.2 - Various claims are often made for surveys. Why is...Ch. 10.4 - We need to survey a random sample of the 300...Ch. 10 - Texas AM Administrators at Texas AM University...Ch. 10 - Satisfied workers The managers of a large company...Ch. 10 - AM again The president of the university plans a...Ch. 10 - Satisfied respondents The companys annual report...Ch. 10 - Sampling students A professor teaching a large...Ch. 10 - Sampling satisfaction A company hoping to assess...Ch. 10 - Sampling AM students For each scenario, identify...Ch. 10 - Satisfactory satisfaction samples For each...
Ch. 10 - Survey students What problems do you see with...Ch. 10 - Happy employees The company plans to have the head...Ch. 10 - Student samples The university administration of...Ch. 10 - Surveying employees The company of Exercise 2 is...Ch. 10 - Roper Through their Roper Reports Worldwide, GfK...Ch. 10 - Student center survey For their class project, a...Ch. 10 - Drug tests Major League Baseball tests players to...Ch. 10 - Prob. 16ECh. 10 - In Exercises 17 to 23, for the reports about...Ch. 10 - Prob. 18ECh. 10 - Prob. 19ECh. 10 - Prob. 20ECh. 10 - In Exercises 17 to 23, for the reports about...Ch. 10 - In Exercises 17 to 23, for the reports about...Ch. 10 - In Exercises 17 to 23, for the reports about...Ch. 10 - Mistaken poll A local TV station conducted a...Ch. 10 - Another mistaken poll Prior to the mayoral...Ch. 10 - Parent opinion, part 1 In a large city school...Ch. 10 - Parent opinion, part 2 Lets revisit the school...Ch. 10 - Prob. 28ECh. 10 - Prob. 29ECh. 10 - Roller coasters An amusement park has opened a new...Ch. 10 - Playground, act two The survey described in...Ch. 10 - Wording the survey Two members of the PTA...Ch. 10 - Banning ephedra An online poll on a website asked:...Ch. 10 - Survey questions Examine each of the following...Ch. 10 - More survey questions Examine each of the...Ch. 10 - Phone surveys Any time we conduct a survey, we...Ch. 10 - Cell phone survey What about drawing a random...Ch. 10 - Fuel economy Occasionally, when I fill my car with...Ch. 10 - Prob. 40ECh. 10 - Prob. 41ECh. 10 - Quality control Sammys Salsa, a small local...Ch. 10 - A fish story Concerned about reports of discolored...Ch. 10 - Prob. 44ECh. 10 - More sampling methods Consider each of these...
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