Statistics, Books a la Carte Edition Plus MyLab Statistics with Pearson eText -- Access Card Package (4th Edition)
4th Edition
ISBN: 9780134435855
Author: Alan Agresti, Christine A. Franklin, Bernhard Klingenberg
Publisher: PEARSON
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Chapter 11, Problem 82CP
Multiple response variables Each subject in a sample of 100 men and 100 women is asked to indicate which of the following factors (one or more) are responsible for increases in crime committed by teenagers: A–the increasing gap in income between the rich and poor, B–the increase in the percentage of single-parent families, C–insufficient time that parents spend with their children. To analyze whether responses differ by gender of respondent, we cross-classify the responses by gender, as the table shows.
- a. Is it valid to apply the chi-squared test of independence to these data? Explain.
- b. Explain how this table actually provides information needed to cross-classify gender with each of three variables. Construct the
contingency table relating gender to opinion about whether factor A is responsible for increases in teenage crime.
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Please solving problem2
Problem1
We consider a two-period binomial model with the following properties: each period lastsone (1) year and the current stock price is S0 = 4. On each period, the stock price doubleswhen it moves up and is reduced by half when it moves down. The annual interest rateon the money market is 25%. (This model is the same as in Prob. 1 of HW#2).We consider four options on this market: A European call option with maturity T = 2 years and strike price K = 5; A European put option with maturity T = 2 years and strike price K = 5; An American call option with maturity T = 2 years and strike price K = 5; An American put option with maturity T = 2 years and strike price K = 5.(a) Find the price at time 0 of both European options.(b) Find the price at time 0 of both American options. Compare your results with (a)and comment.(c) For each of the American options, describe the optimal exercising strategy.
Problem 1.We consider a two-period binomial model with the following properties: each period lastsone (1) year and the current stock price is S0 = 4. On each period, the stock price doubleswhen it moves up and is reduced by half when it moves down. The annual interest rateon the money market is 25%.
We consider four options on this market: A European call option with maturity T = 2 years and strike price K = 5; A European put option with maturity T = 2 years and strike price K = 5; An American call option with maturity T = 2 years and strike price K = 5; An American put option with maturity T = 2 years and strike price K = 5.(a) Find the price at time 0 of both European options.(b) Find the price at time 0 of both American options. Compare your results with (a)and comment.(c) For each of the American options, describe the optimal exercising strategy.(d) We assume that you sell the American put to a market participant A for the pricefound in (b). Explain how you act on the market…
Chapter 11 Solutions
Statistics, Books a la Carte Edition Plus MyLab Statistics with Pearson eText -- Access Card Package (4th Edition)
Ch. 11.1 - Gender gap in politics? In the United States, is...Ch. 11.1 - Prob. 2PBCh. 11.1 - Williams College admission Data from 2013 posted...Ch. 11.1 - Prob. 4PBCh. 11.1 - Marital happiness and income In the GSS, subjects...Ch. 11.1 - What is independent of happiness? Which one of the...Ch. 11.1 - Sample evidence about independence Refer to the...Ch. 11.2 - Life after death and gender In the 2012 GSS, 605...Ch. 11.2 - Happiness and gender For the 2 3 table on gender...Ch. 11.2 - Prob. 10PB
Ch. 11.2 - Marital happiness and income In Exercise 11.5 when...Ch. 11.2 - First and second free throw independent? In pro...Ch. 11.2 - Cigarettes and marijuana The table on the...Ch. 11.2 - Prob. 14PBCh. 11.2 - Help the environment In 2010 the GSS asked whether...Ch. 11.2 - Prob. 16PBCh. 11.2 - Aspirin and heart attacks A Swedish study used...Ch. 11.2 - z test for heart attack study Refer to the...Ch. 11.2 - Severity of fever after flu shot The study...Ch. 11.2 - Prob. 20PBCh. 11.2 - Testing a genetic theory In an experiment on...Ch. 11.2 - Birthdays by quarters Based on a random sample of...Ch. 11.2 - Checking a roulette wheel Karl Pearson devised the...Ch. 11.3 - Democrat, race, and gender The two tables show...Ch. 11.3 - Death penalty associations Table 11.10, summarized...Ch. 11.3 - Smoking and alcohol The table refers to a survey...Ch. 11.3 - Sex of victim and offender For murders in the...Ch. 11.3 - Smelling and mortality A recent study (Pinto et...Ch. 11.3 - Vioxx In September 2004, the pharmaceutical...Ch. 11.3 - Egg and cell derived vaccine When comparing the...Ch. 11.3 - Risk of dying for teenagers According to...Ch. 11.3 - Marital happiness The table shows 2012 GSS data on...Ch. 11.3 - Party ID and gender The table shows the 2012 GSS...Ch. 11.3 - Chi-squared versus measuring association For the...Ch. 11.4 - Standardized residuals for happiness and income...Ch. 11.4 - Prob. 36PBCh. 11.4 - Prob. 37PBCh. 11.4 - Prob. 38PBCh. 11.4 - Prob. 39PBCh. 11.4 - Prob. 40PBCh. 11.5 - Keeping old dogs mentally sharp In an experiment...Ch. 11.5 - Prob. 43PBCh. 11.5 - Prob. 44PBCh. 11.5 - Prob. 46PBCh. 11 - Female for president? When recent General Social...Ch. 11 - Prob. 48CPCh. 11 - Down and chi-squared For the data in the previous...Ch. 11 - Prob. 50CPCh. 11 - Prob. 51CPCh. 11 - Prob. 52CPCh. 11 - Prob. 53CPCh. 11 - Prob. 54CPCh. 11 - Prob. 55CPCh. 11 - Prob. 56CPCh. 11 - Seat belt helps? The table refers to passengers in...Ch. 11 - Prob. 58CPCh. 11 - Prob. 59CPCh. 11 - Prob. 60CPCh. 11 - Prob. 61CPCh. 11 - Prob. 62CPCh. 11 - Prob. 63CPCh. 11 - Prob. 64CPCh. 11 - Clarity of diamonds Does the clarity of a diamond...Ch. 11 - Benfords Law When looking at a collection of...Ch. 11 - Prob. 67CPCh. 11 - Prob. 68CPCh. 11 - Prob. 70CPCh. 11 - Prob. 71CPCh. 11 - Prob. 72CPCh. 11 - Prob. 73CPCh. 11 - Prob. 74CPCh. 11 - Prob. 75CPCh. 11 - Prob. 76CPCh. 11 - Prob. 77CPCh. 11 - Prob. 78CPCh. 11 - Prob. 79CPCh. 11 - Statistical versus practical significance In any...Ch. 11 - Prob. 81CPCh. 11 - Multiple response variables Each subject in a...Ch. 11 - Standardized residuals for 2 2 tables The table...Ch. 11 - Prob. 84CPCh. 11 - Prob. 85CPCh. 11 - Prob. 86CPCh. 11 - Prob. 87CPCh. 11 - Prob. 88CPCh. 11 - Voting with 16 A recent survey of Austrian high...
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