Elementary Statistics Using Excel (6th Edition)
6th Edition
ISBN: 9780134506623
Author: Mario F. Triola
Publisher: PEARSON
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Question
Chapter 2, Problem 1CQQ
To determine
To find: The class width in the frequency distribution.
To identify: The original values in the frequency distribution.
Expert Solution & Answer
Answer to Problem 1CQQ
The class width for each class is 3.
No, it is not possible to identify the original data values in the frequency distribution table.
Explanation of Solution
Given info:
The data shows the frequency distribution for the number of chocolate chips in each cookie from a sample of cookies.
Calculation:
Formula for finding the class width:
From the given table, the maximum data value is 32, the minimum data value is 18 and the number of classes is 5. Substitute these values in the class width formula.
Thus, the class width for each class is 3.
Justification:
No, it is impossible to identify the original data values because only the frequency distribution is given.
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Students have asked these similar questions
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.)
Problem 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?
We consider a 4-dimensional stock price model given (under P) by
dẴ₁ = µ· Xt dt + йt · ΣdŴt
where (W) is an n-dimensional Brownian motion,
π = (0.02, 0.01, -0.02, 0.05),
0.2
0
0
0
0.3
0.4
0
0
Σ=
-0.1
-4a За
0
0.2
0.4 -0.1 0.2)
and a E R. We assume that ☑0 = (1, 1, 1, 1) and that the interest rate on the market is r = 0.02.
(a) Give a condition on a that would make stock #3 be the one with largest volatility.
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(c) Determine the maximum diversification coefficient d that you could reach by varying the
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2
Chapter 2 Solutions
Elementary Statistics Using Excel (6th Edition)
Ch. 2.1 - 1. McDonald’s Dinner Service Times Refer 10 the...Ch. 2.1 - Prob. 2BSCCh. 2.1 - Prob. 3BSCCh. 2.1 - Prob. 4BSCCh. 2.1 - In Exercise 5–8, identify the class width, class...Ch. 2.1 - Prob. 6BSCCh. 2.1 - Prob. 7BSCCh. 2.1 - Prob. 8BSCCh. 2.1 - Prob. 9BSCCh. 2.1 - Prob. 10BSC
Ch. 2.1 - Constructing Frequency Distributions. In Exercises...Ch. 2.1 - Constructing Frequency Distributions. In Exercises...Ch. 2.1 - Constructing Frequency Distributions. In Exercises...Ch. 2.1 - 14. Burger King Dinner Service Times Refer to Data...Ch. 2.1 - 15. Wendy’s Lunch Service Times Refer to Data Set...Ch. 2.1 - 16. Wendy’s Dinner Service Times Refer to Data Set...Ch. 2.1 - 17. Analysis of Last Digits Heights of statistics...Ch. 2.1 - 18. Analysis of Last Digits Weights of respondents...Ch. 2.1 - Prob. 19BSCCh. 2.1 - Prob. 20BSCCh. 2.1 - Prob. 21BSCCh. 2.1 - Prob. 22BSCCh. 2.1 - Categorical Data. In Exercises 23 and 24, use the...Ch. 2.1 - Prob. 24BSCCh. 2.1 - Prob. 25BSCCh. 2.1 - Prob. 26BSCCh. 2.1 - Prob. 27BSCCh. 2.1 - Prob. 28BSCCh. 2.1 - Prob. 29BBCh. 2.2 - 1. Heights Heights of adult males are normally...Ch. 2.2 - Prob. 2BSCCh. 2.2 - Prob. 3BSCCh. 2.2 - Prob. 4BSCCh. 2.2 - Interpreting a Histogram. In Exercises 5–8, answer...Ch. 2.2 - Interpreting a Histogram. In Exercises 5–8, answer...Ch. 2.2 - Interpreting a Histogram. In Exercises 5–8, answer...Ch. 2.2 - Interpreting a Histogram. In Exercises 5–8, answer...Ch. 2.2 - Constructing Histograms. In Exercises 9 –45,...Ch. 2.2 - Constructing Histograms. In Exercises 9–45,...Ch. 2.2 - Tornadoes Use the frequency distribution from...Ch. 2.2 - Constructing Histograms. In Exercises 9–45,...Ch. 2.2 - Tornadoes Use the frequency distribution from...Ch. 2.2 - Constructing Histograms. In Exercises 9–45,...Ch. 2.2 - Prob. 15BSCCh. 2.2 - Prob. 16BSCCh. 2.2 - Prob. 17BBCh. 2.2 - Prob. 18BBCh. 2.3 - 1. Body Temperatures Listed below are body...Ch. 2.3 - 2. Voluntary Response Data If we have a large...Ch. 2.3 - 3. Ethics There are data showing that smoking is...Ch. 2.3 - 4. CVDOT Section 2-1 introduced important...Ch. 2.3 - Pulse Rates Listed below are pulse rates (beats...Ch. 2.3 - Diastolic Blood Pressure Listed below are...Ch. 2.3 - Pulse Rates Refer to the data listed in Exercise...Ch. 2.3 - Diastolic Blood Pressure Refer to the data listed...Ch. 2.3 - Time-Series Graphs. In Exercises 9 and 10,...Ch. 2.3 - Time-Series Graphs. In Exercises 9 and 10,...Ch. 2.3 - Prob. 11BSCCh. 2.3 - Prob. 12BSCCh. 2.3 - Prob. 13BSCCh. 2.3 - Prob. 14BSCCh. 2.3 - Prob. 15BSCCh. 2.3 - Frequency Polygon. In Exercises 15 and 13,...Ch. 2.3 - Prob. 17BSCCh. 2.3 - Deceptive Graphs. In Exercises 17-20, identify how...Ch. 2.3 - Prob. 19BSCCh. 2.3 - Prob. 20BSCCh. 2.3 - Prob. 21BBCh. 2.4 - 1. Linear Correlation In this section we use r to...Ch. 2.4 - Prob. 2BSCCh. 2.4 - Prob. 3BSCCh. 2.4 - 4. Estimating r For each of the following,...Ch. 2.4 - Scatterplot. In Exercises 5 – 8, use the sample...Ch. 2.4 - Prob. 6BSCCh. 2.4 - Scatterplot. In Exercises 5 – 8, use the sample...Ch. 2.4 - Scatterplot. In Exercises 5 – 8, use the sample...Ch. 2.4 - Linear Correlation Coefficient In Exercises 9-12,...Ch. 2.4 - Linear Correlation Coefficient In Exercises 9-12,...Ch. 2.4 - Linear Correlation Coefficient In Exercises 9-12,...Ch. 2.4 - Prob. 12BSCCh. 2.4 - Prob. 13BBCh. 2.4 - Prob. 14BBCh. 2.4 - Prob. 15BBCh. 2.4 - Prob. 16BBCh. 2 - Prob. 1CQQCh. 2 - Prob. 2CQQCh. 2 - Prob. 3CQQCh. 2 - Prob. 4CQQCh. 2 - Prob. 5CQQCh. 2 - Prob. 6CQQCh. 2 - Prob. 7CQQCh. 2 - Prob. 8CQQCh. 2 - Prob. 9CQQCh. 2 - Prob. 10CQQCh. 2 - 1. Frequency Distribution of Body Temperatures...Ch. 2 - Prob. 2RECh. 2 - Prob. 3RECh. 2 - Prob. 4RECh. 2 - Prob. 5RECh. 2 - Prob. 6RECh. 2 - Prob. 7RECh. 2 - Prob. 8RECh. 2 - Prob. 1CRECh. 2 - Prob. 2CRECh. 2 - Histogram Construct the histogram corresponding to...Ch. 2 - Prob. 4CRECh. 2 - Prob. 5CRECh. 2 - Prob. 6CRECh. 2 - Prob. 1EP
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