STATISTICS (LL)
3rd Edition
ISBN: 9781119826453
Author: Lock
Publisher: WILEY
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Chapter 1.3, Problem 77E
To determine
Explain an association between two variables.
Give a confounding variable that may help to account for this association.
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One hundred students were surveyed about their preference between dogs and cats. The following two-way table displays data for the sample of students who responded to the survey.
Preference
Male
Female
TOTAL
Prefers dogs
\[36\]
\[20\]
\[56\]
Prefers cats
\[10\]
\[26\]
\[36\]
No preference
\[2\]
\[6\]
\[8\]
TOTAL
\[48\]
\[52\]
\[100\]
problem 1
Find the probability that a randomly selected student prefers dogs.Enter your answer as a fraction or decimal.
\[P\left(\text{prefers dogs}\right)=\]
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Preference
Male
Female
TOTAL
Prefers dogs
\[\blueD{36}\]
\[\blueD{20}\]
\[\blueE{56}\]
Prefers cats
\[10\]
\[26\]
\[36\]
No preference
\[2\]
\[6\]
\[8\]
TOTAL
\[48\]
\[52\]
\[100\]
There were \[\blueE{56}\] students in the sample who preferred dogs out of \[100\] total students.
Business discuss
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.
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).
Include the manufacturer dummy variable (Samsung=1, 0 otherwise) and estimate the relationship between screen size, price and manufacturer dummy as a multiple linear regression model.
Interpret the…
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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- Does there appear to be a positive or negative relationship between price and screen size? Use a scatter plot to examine the relationship. How to take snapshots: if you use a MacBook, press Command+ Shift+4 to take snapshots. If you are using Windows, use the Snipping Tool to take snapshots. 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…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_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_forward
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