Introduction To Statistics And Data Analysis
Introduction To Statistics And Data Analysis
6th Edition
ISBN: 9781337794503
Author: PECK
Publisher: Cengage
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Chapter 12.2, Problem 15E

A random sample of 1000 registered voters in a certain county is selected, and each voter is categorized with respect to both educational level (four categories) and preferred candidate in an upcoming election for county supervisor (five possibilities). The hypothesis of interest is that educational level and preferred candidate are independent.

  1. a. If X2 = 7.2, what is the conclusion at significance level 0.10?
  2. b. If there were only four candidates running for election, what would the conclusion be if X2 = 14.5 and α = 0.05?
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Note: The purpose of this problem below is to use computational techniques (Excelspreadsheet, Matlab, R, Python, etc.) and code the dynamic programming ideas seen inclass. Please provide the numerical answer to the questions as well as a sample of yourwork (spreadsheet, code file, etc.).We consider an N-period binomial model with the following properties: N = 60, thecurrent stock price is S0 = 1000; on each period, the stock price increases by 0.5% whenit moves up and decreases by 0.3% when it moves down. The annual interest rate on themoney market is 5%. (Notice that this model is a CRR model, which means that thebinomial tree is recombining.)(a) Find the price at time t0 = 0 of a (European) call option with strike price K = 1040and maturity T = 1 year.(b) Find the price at time t0 = 0 of a (European) put option with strike price K = 1040and maturity T = 1 year.(c) We consider now, that you are at time t5 (i.e. after 5 periods, which represents 1month later). Assume that the stock…
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Introduction To Statistics And Data Analysis

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