STATISTICS (LL)
3rd Edition
ISBN: 9781119826453
Author: Lock
Publisher: WILEY
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Chapter 1.2, Problem 51E
To determine
Identify the population to which the sample can be generalized.
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Chapter 1 Solutions
STATISTICS (LL)
Ch. 1.1 - Prob. 1ECh. 1.1 - For the situations described in Exercises 1.1 to...Ch. 1.1 - For the situations described in Exercises 1.1 to...Ch. 1.1 - For the situations described in Exercises 1.1 to...Ch. 1.1 - For the situations described in Exercises 1.1 to...Ch. 1.1 - For the situations described in Exercises 1.1 to...Ch. 1.1 - In Exercises 1.7 to 1.10, a relationship between...Ch. 1.1 - In Exercises 1.7 to 1.10, a relationship between...Ch. 1.1 - Prob. 9ECh. 1.1 - Prob. 10E
Ch. 1.1 - Student Survey Variables Data 1.1 introduced the...Ch. 1.1 - Countries of the World Information about the...Ch. 1.1 - Spider Sex Play Spiders regularly engage in spider...Ch. 1.1 - Hormones and Fish Fertility When women take birth...Ch. 1.1 - Fast-Twitch Muscles and Race Example 1.5 studied a...Ch. 1.1 - Rowing Solo Across the Atlantic Ocean On January...Ch. 1.1 - Largest Cities in the World Seven of the ten...Ch. 1.1 - Trans-Generational Effects of Diet Can experiences...Ch. 1.1 - Trans-Generational Effects of Environment In...Ch. 1.1 - Hookahs and Health Hookahs are waterpipes used for...Ch. 1.1 - Prob. 21ECh. 1.1 - Don’t Text While Studying! For the 2015 Intel...Ch. 1.1 - Prob. 23ECh. 1.1 - Prob. 24ECh. 1.1 - Prob. 25ECh. 1.1 - Prob. 26ECh. 1.1 - Prob. 27ECh. 1.2 - In Exercises 1.28 to 1.31, state whether the data...Ch. 1.2 - Prob. 29ECh. 1.2 - Prob. 30ECh. 1.2 - Prob. 31ECh. 1.2 - Prob. 32ECh. 1.2 - Prob. 33ECh. 1.2 - Prob. 34ECh. 1.2 - Prob. 35ECh. 1.2 - In Exercises 1.36 to 1.39, a biased sampling...Ch. 1.2 - Prob. 37ECh. 1.2 - Prob. 38ECh. 1.2 - Prob. 39ECh. 1.2 - In Exercises 1.40 to 1.45, state whether or not...Ch. 1.2 - Prob. 41ECh. 1.2 - Prob. 42ECh. 1.2 - Prob. 43ECh. 1.2 - In Exercises 1.40 to 1.45, state whether or not...Ch. 1.2 - Prob. 45ECh. 1.2 - Prob. 46ECh. 1.2 - Prob. 47ECh. 1.2 - In Exercises 1.46 to 1.50, indicate whether we...Ch. 1.2 - Prob. 49ECh. 1.2 - Prob. 50ECh. 1.2 - Prob. 51ECh. 1.2 - Wearing a Uniform to Work The website fox6now.com...Ch. 1.2 - Prob. 53ECh. 1.2 - Prob. 54ECh. 1.2 - Prob. 55ECh. 1.2 - Prob. 56ECh. 1.2 - Prob. 57ECh. 1.2 - Prob. 58ECh. 1.2 - Prob. 59ECh. 1.2 - Prob. 60ECh. 1.2 - Prob. 61ECh. 1.2 - Prob. 62ECh. 1.2 - Prob. 63ECh. 1.2 - Interviewing the Film Crew on Hollywood Movies...Ch. 1.2 - Sampling Some Hardee’s Restaurants The Hardee’s...Ch. 1.3 - Prob. 66ECh. 1.3 - In Exercises 1.66 to 1.71, we give a headline that...Ch. 1.3 - Prob. 68ECh. 1.3 - Prob. 69ECh. 1.3 - In Exercises 1.66 to 1.71, we give a headline that...Ch. 1.3 - Prob. 71ECh. 1.3 - Exercises 1.72 to 1.77 describe an association...Ch. 1.3 - Prob. 73ECh. 1.3 - Prob. 74ECh. 1.3 - Prob. 75ECh. 1.3 - Exercises 1.72 to 1.77 describe an association...Ch. 1.3 - Prob. 77ECh. 1.3 - In Exercises 1.78 to 1.81, we describe data...Ch. 1.3 - Prob. 79ECh. 1.3 - Prob. 80ECh. 1.3 - Prob. 81ECh. 1.3 - Prob. 82ECh. 1.3 - Prob. 83ECh. 1.3 - Prob. 84ECh. 1.3 - Prob. 85ECh. 1.3 - Prob. 86ECh. 1.3 - Prob. 87ECh. 1.3 - Prob. 88ECh. 1.3 - Prob. 89ECh. 1.3 - Do Online Cat Videos Improve Mood? Exercise 1.59...Ch. 1.3 - Green Spaces Make Kids Smarter A recent article50...Ch. 1.3 - Prob. 92ECh. 1.3 - Sitting Is the New Smoking A 2014 headline reads...Ch. 1.3 - Late Night Eating It is well-known that lack of...Ch. 1.3 - To Spoon or Not to Spoon? Does cuddling after sex...Ch. 1.3 - Prob. 96ECh. 1.3 - Prob. 97ECh. 1.3 - Diet Cola and Weight Gain in Humans A study59...Ch. 1.3 - Prob. 99ECh. 1.3 - Urban Brains and Rural Brains A study published in...Ch. 1.3 - Prob. 101ECh. 1.3 - Prob. 102ECh. 1.3 - Prob. 103ECh. 1.3 - Do Children Need Sleep to Grow? About 60% of a...Ch. 1.3 - Prob. 105ECh. 1.3 - Prob. 106ECh. 1.3 - Prob. 107E
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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.)arrow_forwardProblem 4. Margrabe formula and the Greeks (20 pts) In the homework, we determined the Margrabe formula for the price of an option allowing you to swap an x-stock for a y-stock at time T. For stocks with initial values xo, yo, common volatility σ and correlation p, the formula was given by Fo=yo (d+)-x0Þ(d_), where In (±² Ꭲ d+ õ√T and σ = σ√√√2(1 - p). дго (a) We want to determine a "Greek" for ỡ on the option: find a formula for θα (b) Is дго θα positive or negative? (c) We consider a situation in which the correlation p between the two stocks increases: what can you say about the price Fo? (d) Assume that yo< xo and p = 1. What is the price of the option?arrow_forwardWe consider a 4-dimensional stock price model given (under P) by dẴ₁ = µ· Xt dt + йt · ΣdŴt where (W) is an n-dimensional Brownian motion, π = (0.02, 0.01, -0.02, 0.05), 0.2 0 0 0 0.3 0.4 0 0 Σ= -0.1 -4a За 0 0.2 0.4 -0.1 0.2) and a E R. We assume that ☑0 = (1, 1, 1, 1) and that the interest rate on the market is r = 0.02. (a) Give a condition on a that would make stock #3 be the one with largest volatility. (b) Find the diversification coefficient for this portfolio as a function of a. (c) Determine the maximum diversification coefficient d that you could reach by varying the value of a? 2arrow_forward
- Question 1. Your manager asks you to explain why the Black-Scholes model may be inappro- priate for pricing options in practice. Give one reason that would substantiate this claim? Question 2. We consider stock #1 and stock #2 in the model of Problem 2. Your manager asks you to pick only one of them to invest in based on the model provided. Which one do you choose and why ? Question 3. Let (St) to be an asset modeled by the Black-Scholes SDE. Let Ft be the price at time t of a European put with maturity T and strike price K. Then, the discounted option price process (ert Ft) t20 is a martingale. True or False? (Explain your answer.) Question 4. You are considering pricing an American put option using a Black-Scholes model for the underlying stock. An explicit formula for the price doesn't exist. In just a few words (no more than 2 sentences), explain how you would proceed to price it. Question 5. We model a short rate with a Ho-Lee model drt = ln(1+t) dt +2dWt. Then the interest rate…arrow_forwardIn 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.)arrow_forwardThe managing director of a consulting group has the accompanying monthly data on total overhead costs and professional labor hours to bill to clients. Complete parts a through c. Question content area bottom Part 1 a. Develop a simple linear regression model between billable hours and overhead costs. Overhead Costsequals=212495.2212495.2plus+left parenthesis 42.4857 right parenthesis42.485742.4857times×Billable Hours (Round the constant to one decimal place as needed. Round the coefficient to four decimal places as needed. Do not include the $ symbol in your answers.) Part 2 b. Interpret the coefficients of your regression model. Specifically, what does the fixed component of the model mean to the consulting firm? Interpret the fixed term, b 0b0, if appropriate. Choose the correct answer below. A. The value of b 0b0 is the predicted billable hours for an overhead cost of 0 dollars. B. It is not appropriate to interpret b 0b0, because its value…arrow_forward
- Using the accompanying Home Market Value data and associated regression line, Market ValueMarket Valueequals=$28,416+$37.066×Square Feet, compute the errors associated with each observation using the formula e Subscript ieiequals=Upper Y Subscript iYiminus−ModifyingAbove Upper Y with caret Subscript iYi and construct a frequency distribution and histogram. LOADING... Click the icon to view the Home Market Value data. Question content area bottom Part 1 Construct a frequency distribution of the errors, e Subscript iei. (Type whole numbers.) Error Frequency minus−15 comma 00015,000less than< e Subscript iei less than or equals≤minus−10 comma 00010,000 0 minus−10 comma 00010,000less than< e Subscript iei less than or equals≤minus−50005000 5 minus−50005000less than< e Subscript iei less than or equals≤0 21 0less than< e Subscript iei less than or equals≤50005000 9…arrow_forwardThe managing director of a consulting group has the accompanying monthly data on total overhead costs and professional labor hours to bill to clients. Complete parts a through c Overhead Costs Billable Hours345000 3000385000 4000410000 5000462000 6000530000 7000545000 8000arrow_forwardUsing the accompanying Home Market Value data and associated regression line, Market ValueMarket Valueequals=$28,416plus+$37.066×Square Feet, compute the errors associated with each observation using the formula e Subscript ieiequals=Upper Y Subscript iYiminus−ModifyingAbove Upper Y with caret Subscript iYi and construct a frequency distribution and histogram. Square Feet Market Value1813 911001916 1043001842 934001814 909001836 1020002030 1085001731 877001852 960001793 893001665 884001852 1009001619 967001690 876002370 1139002373 1131001666 875002122 1161001619 946001729 863001667 871001522 833001484 798001589 814001600 871001484 825001483 787001522 877001703 942001485 820001468 881001519 882001518 885001483 765001522 844001668 909001587 810001782 912001483 812001519 1007001522 872001684 966001581 86200arrow_forward
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