Intro Stats
4th Edition
ISBN: 9780321826275
Author: Richard D. De Veaux
Publisher: PEARSON
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Chapter 22.3, Problem 6JC
To determine
Check whether the P-value is found to be small or large, if the 
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1 No.
2
3
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Binomial Prob.
X
n
P
Answer
5
6 4
7
8
9
10
12345678
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3
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2
2552
10
0.7
0.233
0.3
0.132
7
0.6
0.290
20
0.02
0.053
150
1000
0.15
0.035
8
7
10
0.7
0.383
11
9
3
5
0.3
0.132
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4
7
0.6
0.290
13
Poisson Probability
14
X
lambda
Answer
18 4
19
20
21
22
23 9
15
16
17 3
1234567829
3
2
0.180
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1.5
0.251
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step by step on Microssoft on how to put this in excel and the answers please
Find binomial probability if:
x = 8, n = 10, p = 0.7
x= 3, n=5, p = 0.3
x = 4, n=7, p = 0.6
Quality Control: A factory produces light bulbs with a 2% defect rate. If a random sample of 20 bulbs is tested, what is the probability that exactly 2 bulbs are defective? (hint: p=2% or 0.02; x =2, n=20; use the same logic for the following problems)
Marketing Campaign: A marketing company sends out 1,000 promotional emails. The probability of any email being opened is 0.15. What is the probability that exactly 150 emails will be opened? (hint: total emails or n=1000, x =150)
Customer Satisfaction: A survey shows that 70% of customers are satisfied with a new product. Out of 10 randomly selected customers, what is the probability that at least 8 are satisfied? (hint: One of the keyword in this question is “at least 8”, it is not “exactly 8”, the correct formula for this should be = 1- (binom.dist(7, 10, 0.7,…
Kate, Luke, Mary and Nancy are sharing a cake. The cake had previously been divided into four slices (s1, s2, s3 and s4). What is an example of fair division of the cake
S1
S2
S3
S4
Kate
$4.00
$6.00
$6.00
$4.00
Luke
$5.30
$5.00
$5.25
$5.45
Mary
$4.25
$4.50
$3.50
$3.75
Nancy
$6.00
$4.00
$4.00
$6.00
Chapter 22 Solutions
Intro Stats
Ch. 22.3 - Why do we need the control group?Ch. 22.3 - Prob. 2JCCh. 22.3 - Prob. 3JCCh. 22.3 - Prob. 4JCCh. 22.3 - Prob. 5JCCh. 22.3 - Prob. 6JCCh. 22.4 - Prob. 7JCCh. 22.4 - Prob. 8JCCh. 22.4 - Prob. 9JCCh. 22 - Human births If there is no seasonal effect on...
Ch. 22 - Bank cards At a major credit card bank, the...Ch. 22 - Prob. 3ECh. 22 - Prob. 4ECh. 22 - Customer ages An analyst at a local bank wonders...Ch. 22 - Bank cards, once more A market researcher working...Ch. 22 - Human births, last time For the data in Exercise...Ch. 22 - Prob. 8ECh. 22 - Prob. 9ECh. 22 - Prob. 10ECh. 22 - Prob. 11ECh. 22 - Prob. 12ECh. 22 - Dice After getting trounced by your little brother...Ch. 22 - MMs As noted in an earlier chapter, Mars Inc. says...Ch. 22 - Nuts A company says its premium mixture of nuts...Ch. 22 - Prob. 16ECh. 22 - NYPD and race Census data for New York City...Ch. 22 - Violence against women In its study When Men...Ch. 22 - Fruit flies Offspring of certain fruit flies may...Ch. 22 - Prob. 20ECh. 22 - Prob. 21ECh. 22 - Lottery numbers The fairness of the South African...Ch. 22 - Prob. 23ECh. 22 - Prob. 24ECh. 22 - Childbirth, part 2 In Exercise 23, the table shows...Ch. 22 - Prob. 26ECh. 22 - Prob. 27ECh. 22 - Prob. 28ECh. 22 - Prob. 29ECh. 22 - Does your doctor know? (part 4) In Exercises 24,...Ch. 22 - Prob. 31ECh. 22 - Prob. 32ECh. 22 - 33. Titanic Here is a table we first saw in...Ch. 22 - NYPD The table below shows the rank attained by...Ch. 22 - Prob. 35ECh. 22 - NYPD again Examine and comment on this table of...Ch. 22 - Cranberry juice Its common folk wisdom that...Ch. 22 - Prob. 38ECh. 22 - Montana A poll conducted by the University of...Ch. 22 - 40. Fish diet Medical researchers followed 6272...Ch. 22 - Prob. 41ECh. 22 - Working parents In April 2009, Gallup published...Ch. 22 - Grades Two different professors teach an...Ch. 22 - Full moon Some people believe that a full moon...Ch. 22 - Grades, again In some situations where the...Ch. 22 - Full moon, next phase In Exercise 44, you found...Ch. 22 - Racial steering A subtle form of racial...Ch. 22 - 48. Titanic, redux Newspaper headlines at the...Ch. 22 - Prob. 49ECh. 22 - Prob. 50ECh. 22 - Prob. 51ECh. 22 - Education by age Use the survey results in the...
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- Faye cuts the sandwich in two fair shares to her. What is the first half s1arrow_forwardQuestion 2. An American option on a stock has payoff given by F = f(St) when it is exercised at time t. We know that the function f is convex. A person claims that because of convexity, it is optimal to exercise at expiration T. Do you agree with them?arrow_forwardQuestion 4. We consider a CRR model with So == 5 and up and down factors u = 1.03 and d = 0.96. We consider the interest rate r = 4% (over one period). Is this a suitable CRR model? (Explain your answer.)arrow_forward
- Question 3. We want to price a put option with strike price K and expiration T. Two financial advisors estimate the parameters with two different statistical methods: they obtain the same return rate μ, the same volatility σ, but the first advisor has interest r₁ and the second advisor has interest rate r2 (r1>r2). They both use a CRR model with the same number of periods to price the option. Which advisor will get the larger price? (Explain your answer.)arrow_forwardQuestion 5. We consider a put option with strike price K and expiration T. This option is priced using a 1-period CRR model. We consider r > 0, and σ > 0 very large. What is the approximate price of the option? In other words, what is the limit of the price of the option as σ∞. (Briefly justify your answer.)arrow_forwardQuestion 6. You collect daily data for the stock of a company Z over the past 4 months (i.e. 80 days) and calculate the log-returns (yk)/(-1. You want to build a CRR model for the evolution of the stock. The expected value and standard deviation of the log-returns are y = 0.06 and Sy 0.1. The money market interest rate is r = 0.04. Determine the risk-neutral probability of the model.arrow_forward
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