Introductory Statistics (2nd Edition)
2nd Edition
ISBN: 9780321978271
Author: Robert Gould, Colleen N. Ryan
Publisher: PEARSON
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Chapter 13, Problem 2SE
In what situations are nonparametric statistics useful?
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You have been hired as an intern to run analyses on the data and report the results back to Sarah; the five questions that Sarah needs you to address are given below.
Does there appear to be a positive or negative relationship between price and screen size? Use a scatter plot to examine the relationship.
Determine and interpret the correlation coefficient between the two variables. In your interpretation, discuss the direction of the relationship (positive, negative, or zero relationship). Also discuss the strength of the relationship.
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Question 1: Determine and interpret the correlation coefficient between the two variables. In your interpretation, discuss the direction of the relationship (positive, negative, or zero relationship). Also discuss the strength of the relationship.
Value of correlation coefficient:
Direction of the relationship (positive, negative, or zero relationship):
Strength of the relationship (strong/moderate/weak):
Question 2: Estimate the relationship between screen size and price using a simple linear regression model and interpret the estimated coefficients. In your interpretation, tell the dollar amount by which price will change for each unit of increase in screen size. (The answer for the…
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.)
Chapter 13 Solutions
Introductory Statistics (2nd Edition)
Ch. 13 - What is the fundamental condition required for...Ch. 13 - In what situations are nonparametric statistics...Ch. 13 - In addition to random samples, what other...Ch. 13 - What summary statistics are best used to report...Ch. 13 - Prob. 5SECh. 13 - Prob. 6SECh. 13 - Log Transforms a. Find the log (base 10) of each...Ch. 13 - Log Transforms a. Find the log (base 10) of each...Ch. 13 - Geometric Mean Find the geometric mean for the...Ch. 13 - Prob. 10SE
Ch. 13 - Circuit City (Example 2) A statistics student who...Ch. 13 - Morning Routine A statistics student conducted a...Ch. 13 - Exercise Hours A statistics student was interested...Ch. 13 - Television Viewing A Nielsen poll asked people the...Ch. 13 - Lead Exposure (Example 3) Excessive lead levels...Ch. 13 - Juvenile Delinquents Dr. Kirkland R. Gable (in...Ch. 13 - The Stroop Effect Suppose you had to identify the...Ch. 13 - Reading Material on Colored Paper In the past,...Ch. 13 - Males’ Pulse Rates Students in a statistics class...Ch. 13 - Females’ Pulse Rates Refer to exercise 13.19. This...Ch. 13 - Ages of Brides and Grooms A random sample of the...Ch. 13 - Textbook Prices A student was interested in...Ch. 13 - Meat-Eating Behavior (Example 4) A researcher was...Ch. 13 - Credit Card Debt A statistics student who was...Ch. 13 - Texting Suppose a group of randomly selected...Ch. 13 - Sleep Typically, do men and women sleep different...Ch. 13 - Cell Phone Bills Cell phone bills (rounded to the...Ch. 13 - Weights of Athletes Data were collected on the...Ch. 13 - Happiness A StatCrunch survey of happiness...Ch. 13 - Soda A StatCrunch survey was done asking what...Ch. 13 - Sports and Extraversion (Example 5) Are students...Ch. 13 - Happiness Are women happier than men? A StatCrunch...Ch. 13 - College Students and Credit Card Debt In exercise...Ch. 13 - Soda Does soda constitute a larger part of the...Ch. 13 - Rainfall In a well-known study on the effects of...Ch. 13 - Rainfall Refer to exercise 13.35, which discussed...Ch. 13 - Randomization Exercise 13.35 describes a...Ch. 13 - Randomization Exercise 13.35 describes a...Ch. 13 - Ages of Married Couples You have date on the ages...Ch. 13 - For exercises 13.39 through 13.46, choose from the...Ch. 13 - Voicemail Suppose you are interested in the length...Ch. 13 - For exercises 13.39 through 13.46, choose from the...Ch. 13 - Ages of Students Suppose you have the ages of a...Ch. 13 - Car Repairs Suppose you want to determine whether...Ch. 13 - Grocery Prices Suppose a random sample of grocery...Ch. 13 - For exercises 13.39 through 13.46, choose from the...Ch. 13 - Ice Cream Cones McDonald’s claims that its ice...Ch. 13 - Average Body Temperatures Many people believe that...Ch. 13 - Contacting Mom Random samples of 30 professors of...Ch. 13 - 13.50 through 13.54 Texts Sent and Received...Ch. 13 - 13.50 through 13.54 Texts Sent and Received...Ch. 13 - 13.50 through 13.54 Texts Sent and Received...Ch. 13 - 13.50 through 13.54 Texts Sent and Received...Ch. 13 - 13.50 through 13.54 Texts Sent and Received...Ch. 13 - Geometric Mean The dotplot shows the number of...Ch. 13 - Looking at the data about contacting mom (exercise...Ch. 13 - Resampling Moms We performed a randomization test...Ch. 13 - Resampling Texts Using the data from Exercise...
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