Elementary Statistics: A Step By Step Approach
Elementary Statistics: A Step By Step Approach
9th Edition
ISBN: 9780073534985
Author: Allan Bluman
Publisher: McGraw-Hill Science/Engineering/Math
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Chapter 2.2, Problem 17E
To determine

To Sketch: A histogram, frequency polygon and ogive using relative frequency and describe the shape of the histogram for the given data.

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Problem 3. Pricing a multi-stock option the Margrabe formula The purpose of this problem is to price a swap option in a 2-stock model, similarly as what we did in the example in the lectures. We consider a two-dimensional Brownian motion given by W₁ = (W(¹), W(2)) on a probability space (Q, F,P). Two stock prices are modeled by the following equations: dX = dY₁ = X₁ (rdt+ rdt+0₁dW!) (²)), Y₁ (rdt+dW+0zdW!"), with Xo xo and Yo =yo. This corresponds to the multi-stock model studied in class, but with notation (X+, Y₁) instead of (S(1), S(2)). Given the model above, the measure P is already the risk-neutral measure (Both stocks have rate of return r). We write σ = 0₁+0%. We consider a swap option, which gives you the right, at time T, to exchange one share of X for one share of Y. That is, the option has payoff F=(Yr-XT). (a) We first assume that r = 0 (for questions (a)-(f)). Write an explicit expression for the process Xt. Reminder before proceeding to question (b): Girsanov's theorem…
Problem 1. Multi-stock model We consider a 2-stock model similar to the one studied in class. Namely, we consider = S(1) S(2) = S(¹) exp (σ1B(1) + (M1 - 0/1 ) S(²) exp (02B(2) + (H₂- M2 where (B(¹) ) +20 and (B(2) ) +≥o are two Brownian motions, with t≥0 Cov (B(¹), B(2)) = p min{t, s}. " The purpose of this problem is to prove that there indeed exists a 2-dimensional Brownian motion (W+)+20 (W(1), W(2))+20 such that = S(1) S(2) = = S(¹) exp (011W(¹) + (μ₁ - 01/1) t) 롱) S(²) exp (021W (1) + 022W(2) + (112 - 03/01/12) t). where σ11, 21, 22 are constants to be determined (as functions of σ1, σ2, p). Hint: The constants will follow the formulas developed in the lectures. (a) To show existence of (Ŵ+), first write the expression for both W. (¹) and W (2) functions of (B(1), B(²)). as (b) Using the formulas obtained in (a), show that the process (WA) is actually a 2- dimensional standard Brownian motion (i.e. show that each component is normal, with mean 0, variance t, and that their…
The scores of 8 students on the midterm exam and final exam were as follows.   Student Midterm Final Anderson 98 89 Bailey 88 74 Cruz 87 97 DeSana 85 79 Erickson 85 94 Francis 83 71 Gray 74 98 Harris 70 91   Find the value of the (Spearman's) rank correlation coefficient test statistic that would be used to test the claim of no correlation between midterm score and final exam score. Round your answer to 3 places after the decimal point, if necessary. Test statistic: rs =

Chapter 2 Solutions

Elementary Statistics: A Step By Step Approach

Ch. 2.1 - For Exercises 912, show frequency distributions...Ch. 2.1 - Prob. 11ECh. 2.1 - For Exercises 912, show frequency distributions...Ch. 2.1 - Prob. 13ECh. 2.1 - Trust in Internet Information A survey was taken...Ch. 2.1 - Eating at Fast Food Restaurants A survey was taken...Ch. 2.1 - Ages of Dogs The ages of 20 dogs in a pet shelter...Ch. 2.1 - Prob. 17ECh. 2.1 - Stories in the Worlds Tallest Buildings The number...Ch. 2.1 - Ages of Declaration of Independence Signers The...Ch. 2.1 - Salaries of Governors Here are the salaries (in...Ch. 2.1 - Charity Donations A random sample of 30 large...Ch. 2.1 - Unclaimed Expired Prizes The number of unclaimed...Ch. 2.1 - Prob. 23ECh. 2.1 - Consumption of Natural Gas Construct a frequency...Ch. 2.1 - Average Wind Speeds A sample of 40 large cities...Ch. 2.1 - Percentage of People Who Completed 4 or More Years...Ch. 2.1 - JFK Assassination A researcher conducted a survey...Ch. 2.1 - The Value of Pi The ratio of the circumference of...Ch. 2.2 - Selling Real Estate Assume you are a realtor in...Ch. 2.2 - Do Students Need Summer Development? For 108...Ch. 2.2 - Prob. 2ECh. 2.2 - Prob. 3ECh. 2.2 - Number of College Faculty The number of faculty...Ch. 2.2 - Railroad Crossing Accidents The data show the...Ch. 2.2 - NFL Salaries The salaries (in millions of dollars)...Ch. 2.2 - Prob. 7ECh. 2.2 - Costs of Utilities The frequency distribution...Ch. 2.2 - Air Pollution One of the air pollutants that is...Ch. 2.2 - Making the Grade The frequency distributions shown...Ch. 2.2 - Blood Glucose Levels The frequency distribution...Ch. 2.2 - Waiting Times The frequency distribution shows the...Ch. 2.2 - Construct a histogram, frequency polygon, and...Ch. 2.2 - Construct a histogram, frequency polygon, and...Ch. 2.2 - Construct a histogram, frequency polygon, and...Ch. 2.2 - Construct a histogram, frequency polygon, and...Ch. 2.2 - Prob. 17ECh. 2.2 - Protein Grams in Fast Food The amount of protein...Ch. 2.2 - Using the histogram shown here, do the following....Ch. 2.2 - Using the results from Exercise 19. answer these...Ch. 2.2 - Math SAT Scores Shown is an ogive depicting the...Ch. 2.3 - Applying the Concepts 23 Causes of Accidental...Ch. 2.3 - Prob. 1ECh. 2.3 - Worldwide Sales of Fast Foods The worldwide sales...Ch. 2.3 - Prob. 3ECh. 2.3 - Roller Coaster Mania The World Roller Coaster...Ch. 2.3 - Prob. 5ECh. 2.3 - Violent Crimes The number of all violent crimes...Ch. 2.3 - Prob. 7ECh. 2.3 - Valentines Day Spending The data show the average...Ch. 2.3 - Prob. 9ECh. 2.3 - Reasons We Travel The following data are based on...Ch. 2.3 - Prob. 11ECh. 2.3 - Colors of Automobiles The popular car colors are...Ch. 2.3 - Prob. 13ECh. 2.3 - Prob. 14ECh. 2.3 - Years of Experience The data show the number of...Ch. 2.3 - Commuting Times Fifty off-campus students were...Ch. 2.3 - Home Run Club There are 43 Major League baseball...Ch. 2.3 - Calories in Salad Dressings A listing of calories...Ch. 2.3 - Length of Major Rivers The data show the lengths...Ch. 2.3 - Math and Reading Achievement Scores The math and...Ch. 2.3 - State which type of graph (Pareto chart, time...Ch. 2.3 - State which graph (Pareto chart, time series...Ch. 2.3 - Prob. 23ECh. 2.3 - Prob. 24ECh. 2.3 - Cost of Milk The graph shows the increase in the...Ch. 2.3 - U.S. Population by Age The following information...Ch. 2.3 - Prob. 27ECh. 2.3 - Trip Reimbursements The average amount requested...Ch. 2 - How People Get Their News The Brunswick Research...Ch. 2 - Mens World Hockey Champions The United States won...Ch. 2 - BUN Count The blood urea nitrogen (BUN) count of...Ch. 2 - Wind Speed The data show the average wind speed...Ch. 2 - Prob. 2.1.5RECh. 2 - Ages of the Vice Presidents at the Time of Their...Ch. 2 - Prob. 2.2.7RECh. 2 - Find the relative frequency for the frequency...Ch. 2 - Construct a histogram, frequency polygon, and...Ch. 2 - Construct a histogram, frequency polygon, and...Ch. 2 - Construct a histogram, frequency polygon, and...Ch. 2 - Construct a histogram, frequency polygon, and...Ch. 2 - Prob. 2.3.13RECh. 2 - Calories of Nuts The data show the number of...Ch. 2 - Prob. 2.3.15RECh. 2 - AID: 1825 | 31/5/2018 16. Pet Care The data (in...Ch. 2 - Prob. 2.3.17RECh. 2 - Prob. 2.3.18RECh. 2 - Prob. 2.3.19RECh. 2 - Prob. 2.3.20RECh. 2 - Prob. 2.3.21RECh. 2 - Prob. 2.3.22RECh. 2 - Prob. 2.3.23RECh. 2 - Public Libraries The numbers of public libraries...Ch. 2 - Pain Relief The graph below shows the time it...Ch. 2 - Casino Payoffs The graph shows the payoffs...Ch. 2 - From the Data Bank located in Appendix B, choose...Ch. 2 - Prob. 2DACh. 2 - From the Data Bank, select at least 30 subjects...Ch. 2 - Prob. 4DACh. 2 - Using the data from Data Set XI in Appendix B,...Ch. 2 - Prob. 7DACh. 2 - Determine whether each statement is true or false....Ch. 2 - Prob. 2CQCh. 2 - Prob. 3CQCh. 2 - Frequency distributions can aid the researcher in...Ch. 2 - Determine whether each statement is true or false....Ch. 2 - Prob. 6CQCh. 2 - Determine whether each statement is true or false....Ch. 2 - Prob. 8CQCh. 2 - What are the boundaries for 8.68.8? a. 89 b....Ch. 2 - What graph should be used to show the relationship...Ch. 2 - Prob. 11CQCh. 2 - The three types of frequency distributions are...Ch. 2 - In a frequency distribution, the number of classes...Ch. 2 - Prob. 14CQCh. 2 - Data collected over a period of time can be...Ch. 2 - A statistical device used in exploratory data...Ch. 2 - On a Pareto chart, the frequencies should be...Ch. 2 - Housing Arrangements A questionnaire on housing...Ch. 2 - Housing Arrangements A questionnaire on housing...Ch. 2 - Prob. 20CQCh. 2 - Construct a histogram, a frequency polygon, and an...Ch. 2 - Coal Consumption The following data represent the...Ch. 2 - Construct a histogram, frequency polygon, and...Ch. 2 - Recycled Trash Construct a Pareto chart and a...Ch. 2 - Identity Thefts The results of a survey of 84...Ch. 2 - Needless Deaths of Children The New England...Ch. 2 - Prob. 27CQCh. 2 - Parking Meter Revenue In a small city the number...Ch. 2 - Prob. 29CQCh. 2 - The Great Lakes Shown are various statistics about...Ch. 2 - Teacher Strikes In Pennsylvania there were more...
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