Elementary Statistics: A Step By Step Approach
10th Edition
ISBN: 9781259755330
Author: Allan G. Bluman
Publisher: McGraw-Hill Education
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Chapter 10.1, Problem 24E
For Exercises 11 through 27, perform the following steps.
a. Draw the
b. Compute the value of the
c. State the hypotheses.
d. Test the significance of the correlation coefficient at α = 0.05, using Table I.
24. NHL Assists and Total Points A random sample of scoring leaders from the NHL showed the following numbers of assists and total points. Based on these data, can it be concluded that there is a significant relationship between the two?
Source: Associated Press.
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In this problem, we consider a Brownian motion (W+) t≥0. We consider a stock model (St)t>0
given (under the measure P) by
d.St 0.03 St dt + 0.2 St dwt,
with So 2. We assume that the interest rate is r = 0.06. The purpose of this problem is to
price an option on this stock (which we name cubic put). This option is European-type, with
maturity 3 months (i.e. T = 0.25 years), and payoff given by
F = (8-5)+
(a) Write the Stochastic Differential Equation satisfied by (St) under the risk-neutral measure
Q. (You don't need to prove it, simply give the answer.)
(b) Give the price of a regular European put on (St) with maturity 3 months and strike K = 2.
(c) Let X =
S. Find the Stochastic Differential Equation satisfied by the process (Xt)
under the measure Q.
(d) Find an explicit expression for X₁ = S3 under measure Q.
(e) Using the results above, find the price of the cubic put option mentioned above.
(f) Is the price in (e) the same as in question (b)? (Explain why.)
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 - Give examples of two variables that are positively...Ch. 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 - 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 - 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 - 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 - 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 - For Exercises 11 through 27, perform the following...Ch. 10.1 - For Exercises 11 through 27, perform the following...Ch. 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 - 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 - 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 - For Exercises 28 through 33, do a complete...Ch. 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 - The y intercept value a can also be found by using...Ch. 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 - Nursing Home Satisfaction A researcher found that...Ch. 10.4 - Special Occasion Cakes A pastry chef who...Ch. 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 - 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 - 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 - For Exercises 1 through 7, do a complete...Ch. 10 - For Exercise 4, find the standard error of the...Ch. 10 - Prob. 10.3.9RECh. 10 - Prob. 10.3.10RECh. 10 - Prob. 10.3.11RECh. 10 - Prob. 10.3.12RECh. 10 - (Opt.) A study found a significant relationship...Ch. 10 - Prob. 10.4.14RECh. 10 - Prob. 10.4.15RECh. 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
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