EP STATISTICS-ACCESS (18 WEEK)
5th Edition
ISBN: 9780135960592
Author: Sullivan
Publisher: PEARSON CO
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Question
Chapter 2, Problem 1RE
(a)
To determine
The number of participants in the survey.
(a)
Expert Solution
Answer to Problem 1RE
Solution: There are 2216 individuals participating in the survey.
Explanation of Solution
By observing the graph provided in the textbook, it can be seen that the total participants are 2216. The calculation is shown below:
(b)
To determine
The relative frequency.
(b)
Expert Solution
Answer to Problem 1RE
Solution: The relative frequency of those respondents who said that the kind of voice makes no difference is 65.3%.
Explanation of Solution
Relative frequency distribution helps in comparing the proportion of observations or frequencies in different class intervals. It is used to decipher which class interval has the greatest or lowest observations out of the entire data provided.
The formula to calculate relative frequency is shown below:
(c)
To determine
To draw: A pareto chart.
(c)
Expert Solution
Answer to Problem 1RE
Solution: The pareto chart for the provided data is shown below:
Explanation of Solution
To construct a pareto chart on Excel, the steps listed below need to be followed:
Step 1: Enter the data in a new excel sheet.
Step 2: Select the data and click on Charts→Histogram. Choose the pareto chart.
The pareto chart will be obtained.
Conclusion: A pareto chart includes both line and bar graphs. The response or observation with the highest frequency will be listed first. The frequencies will decrease as one goes rightward. The line visible in the chart represents the cumulative frequency.
(d)
To determine
Whether the manufactures use the results.
(d)
Expert Solution
Answer to Problem 1RE
Solution: Yes, they do use the results of the survey.
Explanation of Solution
According to the pareto chart, there is no preference for a type of voice. Majority of the respondents feel that voice does not affect the commercial.
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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 2 Solutions
EP STATISTICS-ACCESS (18 WEEK)
Ch. 2.1 - 1. Define raw data in your own words.
Ch. 2.1 - 2. A frequency distribution lists the _____ of...Ch. 2.1 - 3. In a relative frequency distribution, what...Ch. 2.1 - Prob. 4AYUCh. 2.1 - 5. Flu Season The pie chart shown, the type we see...Ch. 2.1 - 6. Cosmetic Surgery This USA Today–type chart...Ch. 2.1 - 7. Most Valuable Player The following Pareto chart...Ch. 2.1 - 8. Poverty The U.S. Census Bureau uses money...Ch. 2.1 - 9. Divorce The following graph represents the...Ch. 2.1 - Prob. 10AYU
Ch. 2.1 - 11. Made in America A random sample of 2163 adults...Ch. 2.1 - Prob. 12AYUCh. 2.1 - 13. College Survey In a national survey conducted...Ch. 2.1 - 14. College Survey In a national survey conducted...Ch. 2.1 - Prob. 15AYUCh. 2.1 - Prob. 16AYUCh. 2.1 - 17. Texting A survey of U.S. adults and teens...Ch. 2.1 - 18. Educational Attainment The educational...Ch. 2.1 - Prob. 19AYUCh. 2.1 - Prob. 20AYUCh. 2.1 - Prob. 21AYUCh. 2.1 - Prob. 22AYUCh. 2.1 - Prob. 23AYUCh. 2.1 - 24. Blood Type A phlebotomist draws the blood of a...Ch. 2.1 - Prob. 25AYUCh. 2.1 - Prob. 26AYUCh. 2.1 - 27. StatCrunch Survey Choose a qualitative...Ch. 2.1 - Prob. 28AYUCh. 2.1 - 29. Putting It Together: Online Homework Keeping...Ch. 2.1 - 30. When should relative frequencies be used when...Ch. 2.1 - Prob. 31AYUCh. 2.1 - Prob. 32AYUCh. 2.1 - Prob. 33AYUCh. 2.2 - 1. The categories by which data are grouped are...Ch. 2.2 - Prob. 2AYUCh. 2.2 - 3. The ______ is the difference between...Ch. 2.2 - Prob. 4AYUCh. 2.2 - 5. True or False: There is not one particular...Ch. 2.2 - 6. True or False: Stem-and-leaf plots are...Ch. 2.2 - 7. True or False: The shape of the distribution...Ch. 2.2 - Prob. 8AYUCh. 2.2 - Prob. 9AYUCh. 2.2 - 10. Car Sales A car salesman records the number of...Ch. 2.2 - 11. IQ Scores The following frequency histogram...Ch. 2.2 - Prob. 12AYUCh. 2.2 - Prob. 13AYUCh. 2.2 - In Problems 13 and 14, for each variable...Ch. 2.2 - 15. Predicting School Enrollment To predict future...Ch. 2.2 - Prob. 16AYUCh. 2.2 - Prob. 17AYUCh. 2.2 - Prob. 18AYUCh. 2.2 - Prob. 19AYUCh. 2.2 - Prob. 20AYUCh. 2.2 - Prob. 21AYUCh. 2.2 - Prob. 22AYUCh. 2.2 - Prob. 23AYUCh. 2.2 - Prob. 24AYUCh. 2.2 - 25. Televisions in the Household A researcher with...Ch. 2.2 - 26. Waiting The data below represent the number of...Ch. 2.2 - 27. Gini Index The Gini Index is a measure of how...Ch. 2.2 - 28. Average Income The following data represent...Ch. 2.2 - 29. Cigarette Tax Rates The table shows the tax,...Ch. 2.2 - 30. Dividend Yield A dividend is a payment from a...Ch. 2.2 - Prob. 31AYUCh. 2.2 - Prob. 32AYUCh. 2.2 - Prob. 33AYUCh. 2.2 - Prob. 34AYUCh. 2.2 - Prob. 35AYUCh. 2.2 - Prob. 36AYUCh. 2.2 - Prob. 37AYUCh. 2.2 - Prob. 38AYUCh. 2.2 - Prob. 39AYUCh. 2.2 - Prob. 40AYUCh. 2.2 - Prob. 41AYUCh. 2.2 - Prob. 42AYUCh. 2.2 - Prob. 43AYUCh. 2.2 - Prob. 44AYUCh. 2.2 - Prob. 45AYUCh. 2.2 - 46. Waiting Draw a dot plot of the waiting data...Ch. 2.2 - 47. Putting It Together: Time Viewing a Web Page...Ch. 2.2 - Prob. 48AYUCh. 2.2 - Prob. 49AYUCh. 2.2 - Prob. 50AYUCh. 2.2 - Prob. 51AYUCh. 2.2 - 52. Describe the situations in which it is...Ch. 2.2 - Prob. 53AYUCh. 2.2 - Prob. 54AYUCh. 2.3 - 1. What is an ogive?
Ch. 2.3 - Prob. 2AYUCh. 2.3 - Prob. 3AYUCh. 2.3 - Prob. 4AYUCh. 2.3 - Prob. 5AYUCh. 2.3 - Prob. 6AYUCh. 2.3 - 7. Graduation Rates The following relative...Ch. 2.3 - Prob. 8AYUCh. 2.3 - 9. Misery Index The following time-series plot...Ch. 2.3 - Prob. 10AYUCh. 2.3 - Prob. 11AYUCh. 2.3 - In Problems 13–16, use the frequency distributions...Ch. 2.3 - Prob. 13AYUCh. 2.3 - Prob. 14AYUCh. 2.3 - Prob. 15AYUCh. 2.3 - Prob. 16AYUCh. 2.3 - Prob. 17AYUCh. 2.3 - Prob. 18AYUCh. 2.3 - 19. Putting It Together: Rates of Return of Stocks...Ch. 2.3 - Prob. 20AYUCh. 2.3 - Prob. 21AYUCh. 2.3 - Prob. 22AYUCh. 2.3 - Prob. 23AYUCh. 2.4 - 1. Inauguration Cost The following is a USA...Ch. 2.4 - 2. Burning Calories The following is a USA...Ch. 2.4 - Prob. 3AYUCh. 2.4 - Prob. 4AYUCh. 2.4 - Prob. 5AYUCh. 2.4 - Prob. 6AYUCh. 2.4 - Prob. 7AYUCh. 2.4 - 8. You Explain It! Oil Reserves The U.S. Strategic...Ch. 2.4 - Prob. 9AYUCh. 2.4 - Prob. 10AYUCh. 2.4 - Prob. 11AYUCh. 2.4 - Prob. 12AYUCh. 2.4 - Prob. 13AYUCh. 2.4 - Prob. 14AYUCh. 2.4 - Prob. 15AYUCh. 2.4 - Prob. 16AYUCh. 2 - Prob. 1RECh. 2 - Prob. 2RECh. 2 - Prob. 3RECh. 2 - 4. Political Affiliation One hundred randomly...Ch. 2 - 5. Family Size A random sample of 60 couples...Ch. 2 - Prob. 6RECh. 2 - Prob. 7RECh. 2 - Prob. 8RECh. 2 - Prob. 9RECh. 2 - Prob. 10RECh. 2 - Prob. 11RECh. 2 - Prob. 12RECh. 2 - Prob. 1CTCh. 2 - Prob. 2CTCh. 2 - Prob. 3CTCh. 2 - 4. The following data represent the number of cars...Ch. 2 - Prob. 5CTCh. 2 - Prob. 6CTCh. 2 - 7. The following data represent the time (in...Ch. 2 - Prob. 8CTCh. 2 - Prob. 9CTCh. 2 - Prob. 1CSCh. 2 - Prob. 2CSCh. 2 - Prob. 3CSCh. 2 - Prob. 4CSCh. 2 - Prob. 5CSCh. 2 - Prob. 6CS
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