Probability and Statistics for Engineers and Scientists
9th Edition
ISBN: 9780321629111
Author: Ronald E. Walpole, Raymond H. Myers, Sharon L. Myers, Keying Ye
Publisher: Prentice Hall
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Textbook Question
Chapter 2.3, Problem 33E
If a multiple-choice test consists of 5 questions, each with 4 possible answers of which only 1 is correct,
- in how many different ways can a student check off one answer to each question?
- in how many ways can a student check off one answer to each question and get all the answers wrong?
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You have been hired as an intern to run analyses on the data and report the results back to Sarah; the five questions that Sarah needs you to address are given below.
Does there appear to be a positive or negative relationship between price and screen size? Use a scatter plot to examine the relationship.
Determine and interpret the correlation coefficient between the two variables. In your interpretation, discuss the direction of the relationship (positive, negative, or zero relationship). Also discuss the strength of the relationship.
Estimate the relationship between screen size and price using a simple linear regression model and interpret the estimated coefficients. (In your interpretation, tell the dollar amount by which price will change for each unit of increase in screen size).
Include the manufacturer dummy variable (Samsung=1, 0 otherwise) and estimate the relationship between screen size, price and manufacturer dummy as a multiple linear regression model.
Interpret the…
Does there appear to be a positive or negative relationship between price and screen size? Use a scatter plot to examine the relationship. How to take snapshots: if you use a MacBook, press Command+ Shift+4 to take snapshots. If you are using Windows, use the Snipping Tool to take snapshots.
Question 1: Determine and interpret the correlation coefficient between the two variables. In your interpretation, discuss the direction of the relationship (positive, negative, or zero relationship). Also discuss the strength of the relationship.
Value of correlation coefficient:
Direction of the relationship (positive, negative, or zero relationship):
Strength of the relationship (strong/moderate/weak):
Question 2: Estimate the relationship between screen size and price using a simple linear regression model and interpret the estimated coefficients. In your interpretation, tell the dollar amount by which price will change for each unit of increase in screen size. (The answer for the…
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
Probability and Statistics for Engineers and Scientists
Ch. 2.2 - List the elements of each of the following sample...Ch. 2.2 - Use the rule method to describe the sample space S...Ch. 2.2 - Which of the following events are equal?
A = {1,...Ch. 2.2 - An experiment involves tossing a pair of dice, one...Ch. 2.2 - Prob. 5ECh. 2.2 - Two jurors are selected from 4 alternates to serve...Ch. 2.2 - Prob. 7ECh. 2.2 - For the sample space of Exercise 2.4,
list the...Ch. 2.2 - Prob. 9ECh. 2.2 - Prob. 10E
Ch. 2.2 - Prob. 11ECh. 2.2 - Exercise and diet are being studied as possible...Ch. 2.2 - Prob. 13ECh. 2.2 - Prob. 14ECh. 2.2 - Consider the sample space S = {copper, sodium,...Ch. 2.2 - If S = {x | 0 < x < 12}, M = {x | 1 < x < 9}, and...Ch. 2.2 - Prob. 17ECh. 2.2 - Which of the following pairs of events are...Ch. 2.2 - Prob. 19ECh. 2.2 - Referring to Exercise 2.19 and the Venn diagram of...Ch. 2.3 - Registrants at a large convention are offered 6...Ch. 2.3 - In a medical study, patients are classified in 8...Ch. 2.3 - Prob. 23ECh. 2.3 - Students at a private liberal arts college are...Ch. 2.3 - A certain brand of shoes comes in 5 different...Ch. 2.3 - Prob. 26ECh. 2.3 - Prob. 27ECh. 2.3 - A drug for the relief of asthma can be purchased...Ch. 2.3 - Prob. 29ECh. 2.3 - In how many different ways can a true-false...Ch. 2.3 - A witness to a hit-and-run accident told the...Ch. 2.3 - In how many ways can 6 people be lined upto get on...Ch. 2.3 - If a multiple-choice test consists of 5 questions,...Ch. 2.3 - Prob. 34ECh. 2.3 - Prob. 35ECh. 2.3 - Prob. 36ECh. 2.3 - Prob. 37ECh. 2.3 - Prob. 38ECh. 2.3 - In a regional spelling bee, the 8 finalists...Ch. 2.3 - In how many ways can 5 starting positions on a...Ch. 2.3 - Find the number of ways that 6 teachers can be...Ch. 2.3 - Prob. 42ECh. 2.3 - Prob. 43ECh. 2.3 - In how many ways can a caravan of 8 covered wagons...Ch. 2.3 - Prob. 45ECh. 2.3 - In how many ways can 3 oaks, 4 pines, and 2 maples...Ch. 2.3 - How many ways are there to select 3 candidates...Ch. 2.3 - How many ways are there that no two students will...Ch. 2.5 - Find the errors in each of the following...Ch. 2.5 - Prob. 50ECh. 2.5 - A box contains 500 envelopes, of which 75...Ch. 2.5 - Suppose that in a senior college class of 500...Ch. 2.5 - The probability that an American industry will...Ch. 2.5 - From past experience, a stockbroker believes that...Ch. 2.5 - If each coded item in a catalog begins with 3...Ch. 2.5 - An automobile manufacturer is concerned about a...Ch. 2.5 - Prob. 57ECh. 2.5 - A pair of fair dice is tossed. Find the...Ch. 2.5 - In a poker hand consisting of 5 cards, find the...Ch. 2.5 - If 3 books are picked at random from a shelf...Ch. 2.5 - In a high school graduating class of 100 students,...Ch. 2.5 - Prob. 62ECh. 2.5 - Prob. 63ECh. 2.5 - Interest centers around the life of an electronic...Ch. 2.5 - Prob. 65ECh. 2.5 - Factory workers are constantly encouraged to...Ch. 2.5 - Consider the situation of Example 2.32 on page...Ch. 2.5 - Interest centers around the nature of an oven...Ch. 2.5 - Prob. 69ECh. 2.5 - Prob. 70ECh. 2.5 - As the situation of Exercise 2.69 might suggest,...Ch. 2.5 - Prove that
P(A′ ∩ B′) = 1+P(A ∩ B) − P(A) − P(B).
Ch. 2.6 - If R is the event that a convict committed armed...Ch. 2.6 - Prob. 74ECh. 2.6 - A random sample of 200 adults are classified below...Ch. 2.6 - In an experiment to study the relationship of...Ch. 2.6 - In the senior year of a high school graduating...Ch. 2.6 - A manufacturer of a flu vaccine is concerned about...Ch. 2.6 - In USA Today (Sept. 5, 1996), the results of a...Ch. 2.6 - Prob. 80ECh. 2.6 - Prob. 81ECh. 2.6 - For married couples living in a certain suburb,...Ch. 2.6 - The probability that a vehicle entering the Luray...Ch. 2.6 - The probability that the head of a household is...Ch. 2.6 - The probability that a doctor correctly diagnoses...Ch. 2.6 - In 1970, 11% of Americans completed four years of...Ch. 2.6 - A real estate agent has 8 master keys to open...Ch. 2.6 - Before the distribution of certain statistical...Ch. 2.6 - A town has two fire engines operating...Ch. 2.6 - Prob. 90ECh. 2.6 - Find the probability of randomly selecting 4 good...Ch. 2.6 - Prob. 92ECh. 2.6 - A circuit system is given in Figure 2.11. Assume...Ch. 2.6 - Prob. 94ECh. 2.7 - In a certain region of the country it is known...Ch. 2.7 - Police plan to enforce speed limits by using...Ch. 2.7 - Referring to Exercise 2.95, what is the...Ch. 2.7 - If the person in Exercise 2.96 received a speeding...Ch. 2.7 - Suppose that the four inspectors at a film factory...Ch. 2.7 - A regional telephone company operates three...Ch. 2.7 - A paint-store chain produces and sells latex and...Ch. 2.7 - Prob. 102ECh. 2.7 - Prob. 103RECh. 2.7 - An allergist claims that 50% of the patients she...Ch. 2.7 - Prob. 105RECh. 2.7 - Prob. 106RECh. 2.7 - Prob. 107RECh. 2.7 - Prob. 108RECh. 2.7 - A large industrial firm uses three local motels to...Ch. 2.7 - The probability that a patient recovers from a...Ch. 2.7 - Prob. 111RECh. 2.7 - Prob. 112RECh. 2.7 - Prob. 113RECh. 2.7 - Prob. 114RECh. 2.7 - A certain federal agency employs three consulting...Ch. 2.7 - A manufacturer is studying the effects of cooking...Ch. 2.7 - Prob. 117RECh. 2.7 - A certain form of cancer is known to be found in...Ch. 2.7 - A producer of a certain type of electronic...Ch. 2.7 - Prob. 120RECh. 2.7 - Prob. 121RECh. 2.7 - Prob. 122RECh. 2.7 - Prob. 123RECh. 2.7 - Prob. 124RECh. 2.7 - A survey of those using a particular statistical...Ch. 2.7 - During bad economic times, industrial workers are...Ch. 2.7 - There is a 50-50 chance that the queen carries the...
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