Concept explainers
a.
Calculate the
a.

Answer to Problem 35E
The correlation between math score and verbal SAT score is 0.75.
Explanation of Solution
Calculation:
The verbal SAT scores (x) and the math SAT scores (y) of six fishermen are given.
Correlation:
The
Software procedure:
Step-by-step procedure to obtain the correlation using the MINITAB software:
- Choose Stat > Basic Statistics > Correlation.
- In Variables, enter the columns of x and y.
- Click OK.
Output using the MINITAB software is given below:
Hence, the correlation between math score and verbal SAT score is 0.75.
b.
Calculate the
b.

Answer to Problem 35E
The mean,
The standard deviation,
Explanation of Solution
Calculation:
Denote
Software procedure:
Step-by-step procedure to obtain the descriptive statistics using the MINITAB software:
- Choose Stat > Basic Statistics > Display Descriptive Statistics, click OK.
- In Variables, enter the columns of x.
- Choose Statistics, select Mean, Standard deviation and click OK.
- Click OK.
Output using the MINITAB software is given below:
From the above output, it is evident that the mean,
c.
Calculate the mean and standard deviation,
c.

Answer to Problem 35E
The mean,
The standard deviation,
Explanation of Solution
Calculation:
Denote
Descriptive statistics:
Software procedure:
Step-by-step procedure to obtain the descriptive statistics using the MINITAB software:
- Choose Stat > Basic Statistics > Display Descriptive Statistics, click OK.
- In Variables, enter the columns of y.
- Choose Statistics, select Mean, Standard deviation and click OK.
- Click OK.
Output using the MINITAB software is given below:
From the above output, it is evident that the mean,
d.
Find the least-squares regression line to predict the math score from the verbal score.
d.

Answer to Problem 35E
The least-squares regression line to predict the math score from the verbal score is
Explanation of Solution
Calculation:
Least-squares regression:
For an ordered pairs of values of variables, (x, y) with respective means
Regression:
Software procedure:
Step by step procedure to obtain regression using Minitab software is given as,
- Choose Stat > Regression > Regression > Fit Regression Model.
- In Responses, enter the numeric column containing the response data y.
- In Continuous Predictors, enter the numeric column containing the predictor variable x.
- Choose Results, select Regression equation and click OK.
- Click OK.
Output using MINITAB software is given below:
From the output, the least-squares regression line to predict the math score from the verbal score is
e.
Find the z-score for each value of x.
e.

Answer to Problem 35E
The z-scores for the values of x are:
0.0324 |
–0.3082 |
1.8573 |
–0.8759 |
0.1135 |
–0.8191 |
Explanation of Solution
Calculation:
The z-score for an x-value is denoted as
Here,
The calculation for the z-scores for the values of x is shown in the following table:
x | ||
428 | 4 | 0.0324 |
386 | –38 | –0.3082 |
653 | 229 | 1.8573 |
316 | –108 | –0.8759 |
438 | 14 | 0.1135 |
323 | –101 | –0.8191 |
f.
Find the z-score for each value of y.
f.

Answer to Problem 35E
The z-score for the values of y are:
–0.8777 |
0.4983 |
1.2974 |
–1.2530 |
0.7484 |
–0.4121 |
Explanation of Solution
Calculation:
The z-score for a y-value is denoted as
Here,
The calculation for the z-scores for the values of y is shown in the following table:
y | ||
373 | –126.3 | –0.8777 |
571 | 71.7 | 0.4983 |
686 | 186.7 | 1.2974 |
319 | –180.3 | –1.2530 |
607 | 107.7 | 0.7484 |
440 | –59.3 | –0.4121 |
g.
Find the correlation coefficient, r, between
Explain whether this correlation is the same as the correlation between math and verbal SAT scores.
g.

Answer to Problem 35E
The correlation, r, between
The correlation between
Explanation of Solution
Calculation:
Correlation:
Software procedure:
Step-by-step procedure to obtain the correlation using the MINITAB software:
- Choose Stat > Basic Statistics > Correlation.
- In Variables, enter the columns of zx and zy.
- Click OK.
Output using the MINITAB software is given below:
Hence, the correlation, r, between
Observe that the correlation between math and verbal SAT scores obtained in part a is 0.75.
Hence, the correlation between
h.
Find the least-squares regression line to predict
Explain the reason the equation of the line is
h.

Answer to Problem 35E
The least-squares regression line to predict
Explanation of Solution
Calculation:
Regression:
Software procedure:
Step by step procedure to obtain regression using Minitab software is given as,
- Choose Stat > Regression > Regression > Fit Regression Model.
- In Responses, enter the numeric column containing the response data zy.
- In Continuous Predictors, enter the numeric column containing the predictor variable zx.
- Choose Results, select Regression equation and click OK.
- Click OK.
Output using MINITAB software is given below:
From the output, the least-squares regression line obtained is:
Hence, the least-squares regression line to predict
Consider the least-squares regression equation:
Now,
Here,
Now, in terms of
Hence, the equation of the line in terms of
Want to see more full solutions like this?
Chapter 11 Solutions
ALEKS 360 ESSENT. STAT ACCESS CARD
- For a binary asymmetric channel with Py|X(0|1) = 0.1 and Py|X(1|0) = 0.2; PX(0) = 0.4 isthe probability of a bit of “0” being transmitted. X is the transmitted digit, and Y is the received digit.a. Find the values of Py(0) and Py(1).b. What is the probability that only 0s will be received for a sequence of 10 digits transmitted?c. What is the probability that 8 1s and 2 0s will be received for the same sequence of 10 digits?d. What is the probability that at least 5 0s will be received for the same sequence of 10 digits?arrow_forwardV2 360 Step down + I₁ = I2 10KVA 120V 10KVA 1₂ = 360-120 or 2nd Ratio's V₂ m 120 Ratio= 360 √2 H I2 I, + I2 120arrow_forwardQ2. [20 points] An amplitude X of a Gaussian signal x(t) has a mean value of 2 and an RMS value of √(10), i.e. square root of 10. Determine the PDF of x(t).arrow_forward
- In a network with 12 links, one of the links has failed. The failed link is randomlylocated. An electrical engineer tests the links one by one until the failed link is found.a. What is the probability that the engineer will find the failed link in the first test?b. What is the probability that the engineer will find the failed link in five tests?Note: You should assume that for Part b, the five tests are done consecutively.arrow_forwardProblem 3. Pricing a multi-stock option the Margrabe formula The purpose of this problem is to price a swap option in a 2-stock model, similarly as what we did in the example in the lectures. We consider a two-dimensional Brownian motion given by W₁ = (W(¹), W(2)) on a probability space (Q, F,P). Two stock prices are modeled by the following equations: dX = dY₁ = X₁ (rdt+ rdt+0₁dW!) (²)), Y₁ (rdt+dW+0zdW!"), with Xo xo and Yo =yo. This corresponds to the multi-stock model studied in class, but with notation (X+, Y₁) instead of (S(1), S(2)). Given the model above, the measure P is already the risk-neutral measure (Both stocks have rate of return r). We write σ = 0₁+0%. We consider a swap option, which gives you the right, at time T, to exchange one share of X for one share of Y. That is, the option has payoff F=(Yr-XT). (a) We first assume that r = 0 (for questions (a)-(f)). Write an explicit expression for the process Xt. Reminder before proceeding to question (b): Girsanov's theorem…arrow_forwardProblem 1. Multi-stock model We consider a 2-stock model similar to the one studied in class. Namely, we consider = S(1) S(2) = 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) 롱) 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). Hint: The constants will follow the formulas developed in the lectures. (a) To show existence of (Ŵ+), first write the expression for both W. (¹) and W (2) functions of (B(1), B(²)). as (b) Using the formulas obtained in (a), show that the process (WA) is actually a 2- dimensional standard Brownian motion (i.e. show that each component is normal, with mean 0, variance t, and that their…arrow_forward
- The scores of 8 students on the midterm exam and final exam were as follows. Student Midterm Final Anderson 98 89 Bailey 88 74 Cruz 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 =arrow_forwardBusiness discussarrow_forwardBusiness discussarrow_forward
- MATLAB: An Introduction with ApplicationsStatisticsISBN:9781119256830Author:Amos GilatPublisher:John Wiley & Sons IncProbability and Statistics for Engineering and th...StatisticsISBN:9781305251809Author:Jay L. DevorePublisher:Cengage LearningStatistics for The Behavioral Sciences (MindTap C...StatisticsISBN:9781305504912Author:Frederick J Gravetter, Larry B. WallnauPublisher:Cengage Learning
- Elementary Statistics: Picturing the World (7th E...StatisticsISBN:9780134683416Author:Ron Larson, Betsy FarberPublisher:PEARSONThe Basic Practice of StatisticsStatisticsISBN:9781319042578Author:David S. Moore, William I. Notz, Michael A. FlignerPublisher:W. H. FreemanIntroduction to the Practice of StatisticsStatisticsISBN:9781319013387Author:David S. Moore, George P. McCabe, Bruce A. CraigPublisher:W. H. Freeman





