Intro Stats
4th Edition
ISBN: 9780321825278
Author: Richard D. De Veaux, Paul F. Velleman, David E. Bock
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 11.4, Problem 2JC
Recall the experiment about gastric freezing, an old method for treating peptic ulcers that you read about in the first Just Checking. Doctors would insert an inflatable bladder down the patient’s esophagus and into the stomach and then pump in a cold liquid. A major insurance company now states that it doesn’t cover this treatment because “double-blind, controlled clinical trials” failed to demonstrate that gastric freezing was effective.
- a) What does it mean that the experiment was double-blind?
- b) Why would you recommend a placebo control?
- c) Suppose that researchers suspected that the effectiveness of the gastric freezing treatment might depend on whether a patient had recently developed the peptic ulcer or had been suffering from the condition for a long time. How might the researchers have designed the experiment?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
21. ANALYSIS OF LAST DIGITS Heights of statistics students were obtained by the author as
part of an experiment conducted for class. The last digits of those heights are listed below.
Construct a frequency distribution with 10 classes. Based on the distribution, do the
heights appear to be reported or actually measured? Does there appear to be a gap in the
frequencies and, if so, how might that gap be explained? What do you know about the
accuracy of the results?
3 4
555
0 0 0 0 0 0 0 0 0 1 1 23 3
5 5 5 5 5 5 5 5 5 5 5 5 6 6 8 8 8 9
A side view of a recycling bin lid is diagramed below where two panels come together at a right angle.
45 in
24 in
Width? —
Given this information, how wide is the recycling bin in inches?
1 No.
2
3
4
Binomial Prob.
X
n
P
Answer
5
6 4
7
8
9
10
12345678
8
3
4
2
2552
10
0.7
0.233
0.3
0.132
7
0.6
0.290
20
0.02
0.053
150
1000
0.15
0.035
8
7
10
0.7
0.383
11
9
3
5
0.3
0.132
12
10
4
7
0.6
0.290
13
Poisson Probability
14
X
lambda
Answer
18 4
19
20
21
22
23 9
15
16
17 3
1234567829
3
2
0.180
2
1.5
0.251
12
10
0.095
5
3
0.101
7
4
0.060
3
2
0.180
2
1.5
0.251
24 10
12
10
0.095
Chapter 11 Solutions
Intro Stats
Ch. 11.3 - At one time, a method called gastric freezing was...Ch. 11.4 - Recall the experiment about gastric freezing, an...Ch. 11 - Steroids The 1990s and early 2000s could be...Ch. 11 - Prob. 2ECh. 11 - Prob. 3ECh. 11 - Tomatoes You want to compare the tastiness and...Ch. 11 - Tips II For the experiment described in Exercise...Ch. 11 - Prob. 6ECh. 11 - Prob. 7ECh. 11 - Prob. 8E
Ch. 11 - Prob. 9ECh. 11 - Prob. 10ECh. 11 - Block that tip The driver of Exercise 3 wants to...Ch. 11 - Blocking tomatoes To obtain enough plants for the...Ch. 11 - Prob. 13ECh. 11 - Prob. 14ECh. 11 - Standardized test scores For his statistics class...Ch. 11 - Heart attacks and height Researchers who examined...Ch. 11 - Prob. 17ECh. 11 - Prob. 18ECh. 11 - Menopause Researchers studied the herb black...Ch. 11 - Honesty Coffee stations in offices often just ask...Ch. 11 - 2134. Whats the design? Read each brief report of...Ch. 11 - 2134. Whats the design? Read each brief report of...Ch. 11 - 2134. Whats the design? Read each brief report of...Ch. 11 - 2134. Whats the design? Read each brief report of...Ch. 11 - 2134. Whats the design? Read each brief report of...Ch. 11 - 2134. Whats the design? Read each brief report of...Ch. 11 - 2134. Whats the design? Read each brief report of...Ch. 11 - 2134. Whats the design? Read each brief report of...Ch. 11 - 2134. Whats the design? Read each brief report of...Ch. 11 - 2134. Whats the design? Read each brief report of...Ch. 11 - 2134. Whats the design? Read each brief report of...Ch. 11 - 2134. Whats the design? Read each brief report of...Ch. 11 - 2134. Whats the design? Read each brief report of...Ch. 11 - 2134. Whats the design? Read each brief report of...Ch. 11 - Omega-3 Exercise 21 describes an experiment that...Ch. 11 - Insomnia Exercise 24 describes an experiment...Ch. 11 - Omega-3, revisited Exercises 21 and 35 describe an...Ch. 11 - Insomnia, again Exercises 24 and 36 describe an...Ch. 11 - Omega-3, finis Exercises 21, 35, and 37 describe...Ch. 11 - Insomnia, at last Exercises 24, 36, and 38...Ch. 11 - Injuries Exercise 33 describes an experiment that...Ch. 11 - Tomatoes II Describe a strategy to randomly split...Ch. 11 - Shoes A running-shoe manufacturer wants to test...Ch. 11 - Swimsuits A swimsuit manufacturer wants to test...Ch. 11 - Hamstrings Exercise 33 discussed an experiment to...Ch. 11 - Diet and blood pressure An experiment showed that...Ch. 11 - Mozart Will listening to a Mozart piano sonata...Ch. 11 - Contrast baths Contrast bath treatments use the...Ch. 11 - Prob. 49ECh. 11 - Swimming Recently, a group of adults who swim...Ch. 11 - Dowsing Before drilling for water, many rural...Ch. 11 - Healing A medical researcher suspects that giving...Ch. 11 - Reading Some schools teach reading using phonics...Ch. 11 - Gas mileage Do cars get better gas mileage with...Ch. 11 - Weekend deaths A study published in the New...Ch. 11 - Shingles A research doctor has discovered a new...Ch. 11 - Beetles Hoping to learn how to control crop damage...Ch. 11 - SAT prep Can special study courses actually help...Ch. 11 - Safety switch An industrial machine requires an...Ch. 11 - Washing clothes A consumer group wants to test the...Ch. 11 - Skydiving, anyone? A humor piece published in the...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.Similar questions
- step by step on Microssoft on how to put this in excel and the answers please Find binomial probability if: x = 8, n = 10, p = 0.7 x= 3, n=5, p = 0.3 x = 4, n=7, p = 0.6 Quality Control: A factory produces light bulbs with a 2% defect rate. If a random sample of 20 bulbs is tested, what is the probability that exactly 2 bulbs are defective? (hint: p=2% or 0.02; x =2, n=20; use the same logic for the following problems) Marketing Campaign: A marketing company sends out 1,000 promotional emails. The probability of any email being opened is 0.15. What is the probability that exactly 150 emails will be opened? (hint: total emails or n=1000, x =150) Customer Satisfaction: A survey shows that 70% of customers are satisfied with a new product. Out of 10 randomly selected customers, what is the probability that at least 8 are satisfied? (hint: One of the keyword in this question is “at least 8”, it is not “exactly 8”, the correct formula for this should be = 1- (binom.dist(7, 10, 0.7,…arrow_forwardKate, Luke, Mary and Nancy are sharing a cake. The cake had previously been divided into four slices (s1, s2, s3 and s4). What is an example of fair division of the cake S1 S2 S3 S4 Kate $4.00 $6.00 $6.00 $4.00 Luke $5.30 $5.00 $5.25 $5.45 Mary $4.25 $4.50 $3.50 $3.75 Nancy $6.00 $4.00 $4.00 $6.00arrow_forwardFaye cuts the sandwich in two fair shares to her. What is the first half s1arrow_forward
- 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?arrow_forwardQuestion 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.)arrow_forwardQuestion 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.)arrow_forward
- Question 5. We consider a put option with strike price K and expiration T. This option is priced using a 1-period CRR model. We consider r > 0, and σ > 0 very large. What is the approximate price of the option? In other words, what is the limit of the price of the option as σ∞. (Briefly justify your answer.)arrow_forwardQuestion 6. You collect daily data for the stock of a company Z over the past 4 months (i.e. 80 days) and calculate the log-returns (yk)/(-1. You want to build a CRR model for the evolution of the stock. The expected value and standard deviation of the log-returns are y = 0.06 and Sy 0.1. The money market interest rate is r = 0.04. Determine the risk-neutral probability of the model.arrow_forwardSeveral markets (Japan, Switzerland) introduced negative interest rates on their money market. In this problem, we will consider an annual interest rate r < 0. We consider a stock modeled by an N-period CRR model where each period is 1 year (At = 1) and the up and down factors are u and d. (a) We consider an American put option with strike price K and expiration T. Prove that if <0, the optimal strategy is to wait until expiration T to exercise.arrow_forward
- We consider an N-period CRR model where each period is 1 year (At = 1), the up factor is u = 0.1, the down factor is d = e−0.3 and r = 0. We remind you that in the CRR model, the stock price at time tn is modeled (under P) by Sta = So exp (μtn + σ√AtZn), where (Zn) is a simple symmetric random walk. (a) Find the parameters μ and σ for the CRR model described above. (b) Find P Ste So 55/50 € > 1). StN (c) Find lim P 804-N (d) Determine q. (You can use e- 1 x.) Ste (e) Find Q So (f) Find lim Q 004-N StN Soarrow_forwardIn this problem, we consider a 3-period stock market model with evolution given in Fig. 1 below. Each period corresponds to one year. The interest rate is r = 0%. 16 22 28 12 16 12 8 4 2 time Figure 1: Stock evolution for Problem 1. (a) A colleague notices that in the model above, a movement up-down leads to the same value as a movement down-up. He concludes that the model is a CRR model. Is your colleague correct? (Explain your answer.) (b) We consider a European put with strike price K = 10 and expiration T = 3 years. Find the price of this option at time 0. Provide the replicating portfolio for the first period. (c) In addition to the call above, we also consider a European call with strike price K = 10 and expiration T = 3 years. Which one has the highest price? (It is not necessary to provide the price of the call.) (d) We now assume a yearly interest rate r = 25%. We consider a Bermudan put option with strike price K = 10. It works like a standard put, but you can exercise it…arrow_forwardIn this problem, we consider a 2-period stock market model with evolution given in Fig. 1 below. Each period corresponds to one year (At = 1). The yearly interest rate is r = 1/3 = 33%. This model is a CRR model. 25 15 9 10 6 4 time Figure 1: Stock evolution for Problem 1. (a) Find the values of up and down factors u and d, and the risk-neutral probability q. (b) We consider a European put with strike price K the price of this option at time 0. == 16 and expiration T = 2 years. Find (c) Provide the number of shares of stock that the replicating portfolio contains at each pos- sible position. (d) You find this option available on the market for $2. What do you do? (Short answer.) (e) We consider an American put with strike price K = 16 and expiration T = 2 years. Find the price of this option at time 0 and describe the optimal exercising strategy. (f) We consider an American call with strike price K ○ = 16 and expiration T = 2 years. Find the price of this option at time 0 and describe…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Holt Mcdougal Larson Pre-algebra: Student Edition...AlgebraISBN:9780547587776Author:HOLT MCDOUGALPublisher:HOLT MCDOUGAL
Holt Mcdougal Larson Pre-algebra: Student Edition...
Algebra
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
Hypothesis Testing - Solving Problems With Proportions; Author: The Organic Chemistry Tutor;https://www.youtube.com/watch?v=76VruarGn2Q;License: Standard YouTube License, CC-BY
Hypothesis Testing and Confidence Intervals (FRM Part 1 – Book 2 – Chapter 5); Author: Analystprep;https://www.youtube.com/watch?v=vth3yZIUlGQ;License: Standard YouTube License, CC-BY