Bundle: Understanding Basic Statistics, Loose-leaf Version, 8th + WebAssign Printed Access Card, Single-Term
8th Edition
ISBN: 9781337888981
Author: Charles Henry Brase, Corrinne Pellillo Brase
Publisher: Cengage Learning
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Chapter 2.1, Problem 18P
For Problems 15-20, use the specified number of classes to do the following.
(a) Find the class width.
(b) Make a frequency table showing class limits, class boundaries, midpoints, frequencies, relative frequencies, and cumulative frequencies.
(c) Draw a histogram.
(d) Draw a relative-frequency histogram.
(e) Categorize the basic distribution shape as uniform, mound-shaped symmetric, bimodal, skewed left, or skewed right.
(f) Draw an Ogive.
(g) Interpretation Discuss some of the features about the data that the graphs reveal. Consider items such as data
Archaeology: New Mexico The Wind Mountain excavation site in New Mexico it animportant archaeological location ofthe ancient Native American Anasazi culture. The following data represent depths (in cm) below surface grade at which significant artifacts were discovered at this site (Reference: A. I. Woosley and A. J.McIntyre. MimbresMogollomArchaeology. University of New Mexico Press). Note: These data are also available for download at the Companion Sites for this text.
| 85 | 45 | 75 | 60 | 90 | 90 | 115 | 30 | 55 | 58 |
| 78 | 120 | 80 | 65 | 65 | 140 | 65 | 56 | 30 | 125 |
| 75 | 137 | 80 | 120 | 15 | 45 | 70 | 65 | 50 | 45 |
| 95 | 70 | 70 | 28 | 40 | 125 | 105 | 75 | 80 | 70 |
| 90 | 68 | 73 | 75 | 55 | 70 | 95 | 65 | 200 | 75 |
| 15 | 90 | 46 | 33 | 100 | 65 | 60 | 55 | 85 | 50 |
| 10 | 68 | 99 | 145 | 45 | 75 | 45 | 95 | 85 | 65 |
| 65 | 52 | 82 |
Use seven classes.
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Direction of the relationship (positive, negative, or zero relationship):
Strength of the relationship (strong/moderate/weak):
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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
Bundle: Understanding Basic Statistics, Loose-leaf Version, 8th + WebAssign Printed Access Card, Single-Term
Ch. 2.1 - Statistical Literacy What is the difference...Ch. 2.1 - Statistical Literacy A data set has values ranging...Ch. 2.1 - Statistical Literacy A data set has values ranging...Ch. 2.1 - Statistical Literacy A data set has value ranging...Ch. 2.1 - Basic Computation: Class Limits A data set with...Ch. 2.1 - Basic Computation: Class limits A data set with...Ch. 2.1 - Interpretation You are manager of a specialty...Ch. 2.1 - Critical Thinking A web site rated 100 colleges...Ch. 2.1 - Critical Thinking Look at the histogram in Figure...Ch. 2.1 - Critical Thinking The following data represent...
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