Intro Stats, Books a la carte Plus NEW MyLab Statistics with Pearson eText -- Access Card Package (5th Edition)
5th Edition
ISBN: 9780134210247
Author: Richard D. De Veaux, Paul Velleman, David E. Bock
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 13, Problem 19E
Graduation It’s believed that as many as 25% of adults over 50 never graduated from high school. We wish to see if this percentage is the same among the 25 to 30 age group.
- a) How many of this younger age group must we survey in order to estimate the proportion of non-grads to within 6% with 90% confidence?
- b) Suppose we want to cut the margin of error to 4%. What’s the necessary
sample size ? - c) What sample size would produce a margin of error of 3%?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Please solving problem2
Problem1
We consider a two-period binomial model with the following properties: each period lastsone (1) year and the current stock price is S0 = 4. On each period, the stock price doubleswhen it moves up and is reduced by half when it moves down. The annual interest rateon the money market is 25%. (This model is the same as in Prob. 1 of HW#2).We consider four options on this market: A European call option with maturity T = 2 years and strike price K = 5; A European put option with maturity T = 2 years and strike price K = 5; An American call option with maturity T = 2 years and strike price K = 5; An American put option with maturity T = 2 years and strike price K = 5.(a) Find the price at time 0 of both European options.(b) Find the price at time 0 of both American options. Compare your results with (a)and comment.(c) For each of the American options, describe the optimal exercising strategy.
Problem 1.We consider a two-period binomial model with the following properties: each period lastsone (1) year and the current stock price is S0 = 4. On each period, the stock price doubleswhen it moves up and is reduced by half when it moves down. The annual interest rateon the money market is 25%.
We consider four options on this market: A European call option with maturity T = 2 years and strike price K = 5; A European put option with maturity T = 2 years and strike price K = 5; An American call option with maturity T = 2 years and strike price K = 5; An American put option with maturity T = 2 years and strike price K = 5.(a) Find the price at time 0 of both European options.(b) Find the price at time 0 of both American options. Compare your results with (a)and comment.(c) For each of the American options, describe the optimal exercising strategy.(d) We assume that you sell the American put to a market participant A for the pricefound in (b). Explain how you act on the market…
What is the standard scores associated to the left of z is 0.1446
Chapter 13 Solutions
Intro Stats, Books a la carte Plus NEW MyLab Statistics with Pearson eText -- Access Card Package (5th Edition)
Ch. 13.2 - You want to poll a random sample of 100 students...Ch. 13.2 - Prob. 2JCCh. 13.2 - If you think that about half the students are in...Ch. 13.3 - A Pew Research study regarding cell phones asked...Ch. 13.3 - Prob. 5JCCh. 13.3 - A Pew Research study regarding cell phones asked...Ch. 13.3 - Prob. 7JCCh. 13.3 - Prob. 8JCCh. 13.5 - Prob. 9JCCh. 13.5 - Prob. 10JC
Ch. 13.5 - Prob. 11JCCh. 13 - Website An investment company is planning to...Ch. 13 - Marketing The proportion of adult women in the...Ch. 13 - Prob. 3ECh. 13 - Character recognition An automatic character...Ch. 13 - Prob. 5ECh. 13 - Hows life? Gallup regularly conducts a poll using...Ch. 13 - Prob. 7ECh. 13 - Prob. 8ECh. 13 - Send more money The philanthropic organization in...Ch. 13 - Character recognition, again The automatic...Ch. 13 - Prob. 11ECh. 13 - Prob. 12ECh. 13 - Prob. 13ECh. 13 - Spanking In a 2015 Pew Research study on trends in...Ch. 13 - Prob. 15ECh. 13 - Smoking The Gallup poll described in Exercise 6...Ch. 13 - Prob. 17ECh. 13 - Prob. 18ECh. 13 - Graduation Its believed that as many as 25% of...Ch. 13 - Hiring In preparing a report on the economy, we...Ch. 13 - Margin of error A TV newscaster reports the...Ch. 13 - Another margin of error A medical researcher...Ch. 13 - Conditions For each situation described below,...Ch. 13 - More conditions Consider each situation described....Ch. 13 - Conclusions A catalog sales company promises to...Ch. 13 - More conclusions In January 2002, two students...Ch. 13 - Confidence intervals Several factors are involved...Ch. 13 - Confidence intervals, again Several factors are...Ch. 13 - Cars What fraction of cars made in Japan? The...Ch. 13 - Prob. 30ECh. 13 - Mislabeled seafood In 2013 the environmental group...Ch. 13 - Mislabeled seafood, second course A Consumer...Ch. 13 - Prob. 33ECh. 13 - Prob. 34ECh. 13 - Prob. 35ECh. 13 - Take the offer First USA, a major credit card...Ch. 13 - Teenage drivers An insurance company checks police...Ch. 13 - Junk mail Direct mail advertisers send...Ch. 13 - Prob. 39ECh. 13 - Prob. 40ECh. 13 - Prob. 41ECh. 13 - Gambling A city ballot includes a local initiative...Ch. 13 - Rickets Vitamin D, whether ingested as a dietary...Ch. 13 - Teachers A 2011 Gallup poll found that 76% of...Ch. 13 - Prob. 45ECh. 13 - Back to campus ACT, Inc. reported that 74% of 1644...Ch. 13 - Deer ticks Wildlife biologists inspect 153 deer...Ch. 13 - Prob. 48ECh. 13 - Graduation, again As in Exercise 19, we hope to...Ch. 13 - Better hiring info Editors of the business report...Ch. 13 - Prob. 51ECh. 13 - Another pilot study During routine screening, a...Ch. 13 - Prob. 53ECh. 13 - Amendment A TV news reporter says that a proposed...
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
- 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…arrow_forwardshow work in paperarrow_forwardshow all work (...or what you entered into your calculator...)arrow_forward
- answerarrow_forwardQuestion 2 The data below provides the battery life of thirty eight (38) motorcycle batteries. 100 83 83 105 110 81 114 99 101 105 78 115 74 96 106 89 94 81 106 91 93 86 79 103 94 108 113 100 117 120 77 93 93 85 76 89 78 88 680 a. Test the hypothesis that mean battery life is greater than 90. Use the 1% level of significance. b. Determine if the mean battery life is different from 80. Use the 10% level of significance. Show all steps for the hypothesis test c. Would your conlcusion in part (b) change at the 5% level of significance? | d. Confirm test results in part (b) using JASP. Note: All JASP input files and output tables should be providedarrow_forwardSuppose that 80% of athletes at a certain college graduate. You randomly select eight athletes. What’s the chance that at most 7 of them graduate?arrow_forward
- Suppose that you flip a fair coin four times. What’s the chance of getting at least one head?arrow_forwardSuppose that the chance that an elementary student eats hot lunch is 30 percent. What’s the chance that, among 20 randomly selected students, between 6 and 8 students eat hot lunch (inclusive)?arrow_forwardBob’s commuting times to work are varied. He makes it to work on time 80 percent of the time. On 12 randomly selected trips to work, what’s the chance that Bob makes it on time at least 10 times?arrow_forward
- Your chance of winning a small prize in a scratch-off ticket is 10 percent. You buy five tickets. What’s the chance you will win at least one prize?arrow_forwardSuppose that 60 percent of families own a pet. You randomly sample four families. What is the chance that two or three of them own a pet?arrow_forwardIf 40 percent of university students purchase their textbooks online, in a random sample of five students, what’s the chance that exactly one of them purchased their textbooks online?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
College Algebra (MindTap Course List)AlgebraISBN:9781305652231Author:R. David Gustafson, Jeff HughesPublisher:Cengage Learning
Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw Hill
Big Ideas Math A Bridge To Success Algebra 1: Stu...AlgebraISBN:9781680331141Author:HOUGHTON MIFFLIN HARCOURTPublisher:Houghton Mifflin Harcourt
Holt Mcdougal Larson Pre-algebra: Student Edition...
Algebra
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
College Algebra (MindTap Course List)
Algebra
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:Cengage Learning
Glencoe Algebra 1, Student Edition, 9780079039897...
Algebra
ISBN:9780079039897
Author:Carter
Publisher:McGraw Hill
Big Ideas Math A Bridge To Success Algebra 1: Stu...
Algebra
ISBN:9781680331141
Author:HOUGHTON MIFFLIN HARCOURT
Publisher:Houghton Mifflin Harcourt
What Are Research Ethics?; Author: HighSchoolScience101;https://www.youtube.com/watch?v=nX4c3V23DZI;License: Standard YouTube License, CC-BY
What is Ethics in Research - ethics in research (research ethics); Author: Chee-Onn Leong;https://www.youtube.com/watch?v=W8Vk0sXtMGU;License: Standard YouTube License, CC-BY