Understandable Statistics: Concepts and Methods
12th Edition
ISBN: 9781337119917
Author: Charles Henry Brase, Corrinne Pellillo Brase
Publisher: Cengage Learning
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Chapter 10.5, Problem 9P
(a)
To determine
Find the level of significance.
State the null and alternative hypothesis.
(b)
To determine
Find the value of
Find the value of
Find the value of
Check that
Find the value of
Find the value of
Find the value of
Find the value of
Find the value of the sample test statistic F.
(c)
To determine
Find the P-value of the sample test statistic.
(d)
To determine
Check whether the null hypothesis is rejected or fail to reject.
(e)
To determine
Interpret the conclusion in the context of the application.
(f)
To determine
Write the summary table for the test.
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Problem 3. Pricing a multi-stock option the Margrabe formula
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dX
=
dY₁ =
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(²)),
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Problem 1. Multi-stock model
We consider a 2-stock model similar to the one studied in class. Namely, we consider
=
S(1)
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=
S(¹) exp (σ1B(1) + (M1 - 0/1 )
S(²) exp (02B(2) + (H₂-
M2
where (B(¹) ) +20 and (B(2) ) +≥o are two Brownian motions, with
t≥0
Cov (B(¹), B(2)) = p min{t, s}.
"
The purpose of this problem is to prove that there indeed exists a 2-dimensional Brownian
motion (W+)+20 (W(1), W(2))+20 such that
=
S(1)
S(2)
=
=
S(¹) exp (011W(¹) + (μ₁ - 01/1) t)
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S(²) exp (021W (1) + 022W(2) + (112 - 03/01/12) t).
where σ11, 21, 22 are constants to be determined (as functions of σ1, σ2, p).
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as
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The scores of 8 students on the midterm exam and final exam were as follows.
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87
97
DeSana
85
79
Erickson
85
94
Francis
83
71
Gray
74
98
Harris
70
91
Find the value of the (Spearman's) rank correlation coefficient test statistic that would be used to test the claim of no correlation between midterm score and final exam score. Round your answer to 3 places after the decimal point, if necessary.
Test statistic: rs =
Chapter 10 Solutions
Understandable Statistics: Concepts and Methods
Ch. 10.1 - Statistical Literacy In general, are chi-square...Ch. 10.1 - Statistical Literacy For chi-square distributions,...Ch. 10.1 - Prob. 3PCh. 10.1 - Prob. 4PCh. 10.1 - Prob. 5PCh. 10.1 - Prob. 6PCh. 10.1 - Prob. 7PCh. 10.1 - Interpretation: Test of Independence Consider...Ch. 10.1 - Prob. 9PCh. 10.1 - For Problems 919, please provide the following...
Ch. 10.1 - Prob. 11PCh. 10.1 - For Problems 919, please provide the following...Ch. 10.1 - Prob. 13PCh. 10.1 - Prob. 14PCh. 10.1 - Prob. 15PCh. 10.1 - Prob. 16PCh. 10.1 - Prob. 17PCh. 10.1 - For Problems 919, please provide the following...Ch. 10.1 - Prob. 19PCh. 10.2 - Statistical Literacy For a chi-square...Ch. 10.2 - Prob. 2PCh. 10.2 - Statistical Literacy Explain why goodness-of-fit...Ch. 10.2 - Prob. 4PCh. 10.2 - For Problems 516, please provide the following...Ch. 10.2 - For Problems 516, please provide the following...Ch. 10.2 - Prob. 7PCh. 10.2 - For Problems 516, please provide the following...Ch. 10.2 - For Problems 516, please provide the following...Ch. 10.2 - For Problems 516, please provide the following...Ch. 10.2 - For Problems 516, please provide the following...Ch. 10.2 - For Problems 516, please provide the following...Ch. 10.2 - For Problems 516, please provide the following...Ch. 10.2 - Prob. 14PCh. 10.2 - Prob. 15PCh. 10.2 - Prob. 16PCh. 10.2 - Prob. 17PCh. 10.2 - Prob. 18PCh. 10.3 - Statistical Literacy Does the x distribution need...Ch. 10.3 - Critical Thinking The x distribution must be...Ch. 10.3 - Prob. 3PCh. 10.3 - For Problems 311, please provide the following...Ch. 10.3 - For Problems 311, please provide the following...Ch. 10.3 - For Problems 311, please provide the following...Ch. 10.3 - For Problems 311, please provide the following...Ch. 10.3 - For Problems 311, please provide the following...Ch. 10.3 - For Problems 311, please provide the following...Ch. 10.3 - For Problems 311, please provide the following...Ch. 10.3 - Prob. 11PCh. 10.4 - Prob. 1PCh. 10.4 - Statistical Literacy When using the F distribution...Ch. 10.4 - Prob. 3PCh. 10.4 - Prob. 4PCh. 10.4 - Prob. 5PCh. 10.4 - Prob. 6PCh. 10.4 - Prob. 7PCh. 10.4 - Prob. 8PCh. 10.4 - Prob. 9PCh. 10.4 - For Problems 512, please provide the following...Ch. 10.4 - Prob. 11PCh. 10.4 - Prob. 12PCh. 10.5 - In each problem, assume that the distributions are...Ch. 10.5 - Prob. 2PCh. 10.5 - Prob. 3PCh. 10.5 - Prob. 4PCh. 10.5 - Prob. 5PCh. 10.5 - Prob. 6PCh. 10.5 - Prob. 7PCh. 10.5 - Prob. 8PCh. 10.5 - Prob. 9PCh. 10.6 - Prob. 1PCh. 10.6 - Prob. 2PCh. 10.6 - Prob. 3PCh. 10.6 - Prob. 4PCh. 10.6 - Prob. 5PCh. 10.6 - Prob. 6PCh. 10.6 - Prob. 7PCh. 10 - Prob. 1CRPCh. 10 - Prob. 2CRPCh. 10 - Prob. 3CRPCh. 10 - Prob. 4CRPCh. 10 - Prob. 5CRPCh. 10 - Before you solve Problems 514, first classify the...Ch. 10 - Prob. 7CRPCh. 10 - Prob. 8CRPCh. 10 - Prob. 9CRPCh. 10 - Prob. 10CRPCh. 10 - Prob. 11CRPCh. 10 - Prob. 12CRPCh. 10 - Prob. 13CRPCh. 10 - Prob. 14CRPCh. 10 - Prob. 1DHCh. 10 - Prob. 1LCCh. 10 - Prob. 2LCCh. 10 - Prob. 1UTCh. 10 - Prob. 2UTCh. 10 - Prob. 3UT
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