PRACTICE OF STATISTICS F/AP EXAM
6th Edition
ISBN: 9781319113339
Author: Starnes
Publisher: MAC HIGHER
expand_more
expand_more
format_list_bulleted
Videos
Question
Chapter 12, Problem AP4.37CPT
To determine
To find out which of the following best describes what the P-value measures.
Expert Solution & Answer
Answer to Problem AP4.37CPT
Option (d) is the correct option.
Explanation of Solution
In this question, a manufacturer of electronics components is testing the durability of a newly designed integrated whether its life span is longer than that of the earlier model or not. Now, we know that the P-value measures the probability of getting the same value or a more extreme value as the null value, if there really is no difference between the circuits and thus answer (d) is correct.
Chapter 12 Solutions
PRACTICE OF STATISTICS F/AP EXAM
Ch. 12.1 - Prob. 1ECh. 12.1 - Prob. 2ECh. 12.1 - Prob. 3ECh. 12.1 - Prob. 4ECh. 12.1 - Prob. 5ECh. 12.1 - Prob. 6ECh. 12.1 - Prob. 7ECh. 12.1 - Prob. 8ECh. 12.1 - Prob. 9ECh. 12.1 - Prob. 10E
Ch. 12.1 - Prob. 11ECh. 12.1 - Prob. 12ECh. 12.1 - Prob. 13ECh. 12.1 - Prob. 14ECh. 12.1 - Prob. 15ECh. 12.1 - Prob. 16ECh. 12.1 - Prob. 17ECh. 12.1 - Prob. 18ECh. 12.1 - Prob. 19ECh. 12.1 - Prob. 20ECh. 12.1 - Prob. 21ECh. 12.1 - Prob. 22ECh. 12.1 - Prob. 23ECh. 12.1 - Prob. 24ECh. 12.1 - Prob. 25ECh. 12.1 - Prob. 26ECh. 12.1 - Prob. 27ECh. 12.1 - Prob. 28ECh. 12.1 - Prob. 29ECh. 12.1 - Prob. 30ECh. 12.1 - Prob. 31ECh. 12.1 - Prob. 32ECh. 12.2 - Prob. 33ECh. 12.2 - Prob. 34ECh. 12.2 - Prob. 35ECh. 12.2 - Prob. 36ECh. 12.2 - Prob. 37ECh. 12.2 - Prob. 38ECh. 12.2 - Prob. 39ECh. 12.2 - Prob. 40ECh. 12.2 - Prob. 41ECh. 12.2 - Prob. 42ECh. 12.2 - Prob. 43ECh. 12.2 - Prob. 44ECh. 12.2 - Prob. 45ECh. 12.2 - Prob. 46ECh. 12.2 - Prob. 47ECh. 12.2 - Prob. 48ECh. 12.2 - Prob. 49ECh. 12.2 - Prob. 50ECh. 12.2 - Prob. 51ECh. 12.2 - Prob. 52ECh. 12.2 - Prob. 53ECh. 12.2 - Prob. 54ECh. 12.2 - Prob. 55ECh. 12.2 - Prob. 56ECh. 12.2 - Prob. 57ECh. 12.2 - Prob. 58ECh. 12 - Prob. R12.1RECh. 12 - Prob. R12.2RECh. 12 - Prob. R12.3RECh. 12 - Prob. R12.4RECh. 12 - Prob. R12.5RECh. 12 - Prob. R12.6RECh. 12 - Prob. T12.1SPTCh. 12 - Prob. T12.2SPTCh. 12 - Prob. T12.3SPTCh. 12 - Prob. T12.4SPTCh. 12 - Prob. T12.5SPTCh. 12 - Prob. T12.6SPTCh. 12 - Prob. T12.7SPTCh. 12 - Prob. T12.8SPTCh. 12 - Prob. T12.9SPTCh. 12 - Prob. T12.10SPTCh. 12 - Prob. T12.11SPTCh. 12 - Prob. T12.12SPTCh. 12 - Prob. AP4.1CPTCh. 12 - Prob. AP4.2CPTCh. 12 - Prob. AP4.3CPTCh. 12 - Prob. AP4.4CPTCh. 12 - Prob. AP4.5CPTCh. 12 - Prob. AP4.6CPTCh. 12 - Prob. AP4.7CPTCh. 12 - Prob. AP4.8CPTCh. 12 - Prob. AP4.9CPTCh. 12 - Prob. AP4.10CPTCh. 12 - Prob. AP4.11CPTCh. 12 - Prob. AP4.12CPTCh. 12 - Prob. AP4.13CPTCh. 12 - Prob. AP4.14CPTCh. 12 - Prob. AP4.15CPTCh. 12 - Prob. AP4.16CPTCh. 12 - Prob. AP4.17CPTCh. 12 - Prob. AP4.18CPTCh. 12 - Prob. AP4.19CPTCh. 12 - Prob. AP4.20CPTCh. 12 - Prob. AP4.21CPTCh. 12 - Prob. AP4.22CPTCh. 12 - Prob. AP4.23CPTCh. 12 - Prob. AP4.24CPTCh. 12 - Prob. AP4.25CPTCh. 12 - Prob. AP4.26CPTCh. 12 - Prob. AP4.27CPTCh. 12 - Prob. AP4.28CPTCh. 12 - Prob. AP4.29CPTCh. 12 - Prob. AP4.30CPTCh. 12 - Prob. AP4.31CPTCh. 12 - Prob. AP4.32CPTCh. 12 - Prob. AP4.33CPTCh. 12 - Prob. AP4.34CPTCh. 12 - Prob. AP4.35CPTCh. 12 - Prob. AP4.36CPTCh. 12 - Prob. AP4.37CPTCh. 12 - Prob. AP4.38CPTCh. 12 - Prob. AP4.39CPTCh. 12 - Prob. AP4.40CPTCh. 12 - Prob. AP4.41CPTCh. 12 - Prob. AP4.42CPTCh. 12 - Prob. AP4.43CPTCh. 12 - Prob. AP4.44CPTCh. 12 - Prob. AP4.45CPTCh. 12 - Prob. AP4.46CPT
Additional Math Textbook Solutions
Find more solutions based on key concepts
4. Annual Incomes Annual incomes are known to have a distribution that is skewed to the right instead of being ...
Elementary Statistics (13th Edition)
Find the derivatives of the functions in Exercises 23–50.
23.
University Calculus: Early Transcendentals (4th Edition)
In Exercises 11-20, express each decimal as a percent.
11. 0.59
Thinking Mathematically (6th Edition)
Fill in each blanks so that the resulting statement is true. Any set of ordered pairs is called a/an _______. T...
College Algebra (7th Edition)
Explain the meaning of the term “statistically significant difference” in statistics terminology.
Intro Stats, Books a la Carte Edition (5th Edition)
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
- 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 0.095arrow_forwardstep 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_forward
- Faye cuts the sandwich in two fair shares to her. What is the first half s1arrow_forwardQuestion 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_forward
- Question 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_forwardQuestion 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_forward
- Several 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_forwardWe 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_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
MATLAB: An Introduction with ApplicationsStatisticsISBN:9781119256830Author:Amos GilatPublisher:John Wiley & Sons Inc
Probability and Statistics for Engineering and th...StatisticsISBN:9781305251809Author:Jay L. DevorePublisher:Cengage Learning
Statistics 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:PEARSON
The Basic Practice of StatisticsStatisticsISBN:9781319042578Author:David S. Moore, William I. Notz, Michael A. FlignerPublisher:W. H. Freeman
Introduction to the Practice of StatisticsStatisticsISBN:9781319013387Author:David S. Moore, George P. McCabe, Bruce A. CraigPublisher:W. H. Freeman
MATLAB: An Introduction with Applications
Statistics
ISBN:9781119256830
Author:Amos Gilat
Publisher:John Wiley & Sons Inc
Probability and Statistics for Engineering and th...
Statistics
ISBN:9781305251809
Author:Jay L. Devore
Publisher:Cengage Learning
Statistics for The Behavioral Sciences (MindTap C...
Statistics
ISBN:9781305504912
Author:Frederick J Gravetter, Larry B. Wallnau
Publisher:Cengage Learning
Elementary Statistics: Picturing the World (7th E...
Statistics
ISBN:9780134683416
Author:Ron Larson, Betsy Farber
Publisher:PEARSON
The Basic Practice of Statistics
Statistics
ISBN:9781319042578
Author:David S. Moore, William I. Notz, Michael A. Fligner
Publisher:W. H. Freeman
Introduction to the Practice of Statistics
Statistics
ISBN:9781319013387
Author:David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:W. H. Freeman
Hypothesis Testing using Confidence Interval Approach; Author: BUM2413 Applied Statistics UMP;https://www.youtube.com/watch?v=Hq1l3e9pLyY;License: Standard YouTube License, CC-BY
Hypothesis Testing - Difference of Two Means - Student's -Distribution & Normal Distribution; Author: The Organic Chemistry Tutor;https://www.youtube.com/watch?v=UcZwyzwWU7o;License: Standard Youtube License