ELEMENTARY SATISTICS IA
13th Edition
ISBN: 9780137695522
Author: Triola
Publisher: PEARSON C
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 2.4, Problem 9BSC
Linear
9. Using the data from Exercise 5 “Brain Volume and IQ,” the linear correlation coefficient is r = 0.127.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
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 SATISTICS IA
Ch. 2.1 - McDonalds Dinner Service Times Refer 10 the...Ch. 2.1 - McDonalds Dinner Service Times Refer to the...Ch. 2.1 - Relative Frequency Distribution Use percentages to...Ch. 2.1 - Whats Wrong? Heights of adult males are known to...Ch. 2.1 - In Exercise 58, identify the class width, class...Ch. 2.1 - In Exercises 58, identify the class width, class...Ch. 2.1 - In Exercises 58, identify the class width, class...Ch. 2.1 - In Exercises 58, identify the class width, class...Ch. 2.1 - Normal Distributions. In Exercises 9 and 10, using...Ch. 2.1 - Normal Distributions. In Exercises 9 and 10, using...
Ch. 2.1 - Constructing Frequency Distributions. In Exercises...Ch. 2.1 - Constructing Frequency Distributions. In Exercises...Ch. 2.1 - Constructing Frequency Distributions. In Exercises...Ch. 2.1 - Burger King Dinner Service Times Refer to Data Set...Ch. 2.1 - Wendys Lunch Service Times Refer to Data Set 25...Ch. 2.1 - Wendys Dinner Service Times Refer to Data Set 25...Ch. 2.1 - Analysis of Last Digits Heights of statistics...Ch. 2.1 - Analysis of Last Digits Weights of respondents...Ch. 2.1 - Oscar Winners Construct one table (similar to...Ch. 2.1 - Blood Platelet Counts Construct one table (similar...Ch. 2.1 - Cumulative Frequency Distributions. In Exercises...Ch. 2.1 - Cumulative Frequency Distributions. In Exercises...Ch. 2.1 - Categorical Data. In Exercises 23 and 24, use the...Ch. 2.1 - Categorical Data. In Exercises 23 and 24, use the...Ch. 2.1 - Large Data Sets. Exercises 2528 involve large sets...Ch. 2.1 - Large Data Sets. Exercises 2528 involve large sets...Ch. 2.1 - Large Data Sets. Exercises 2528 involve large sets...Ch. 2.1 - Large Data Sets. Exercises 2528 involve large sets...Ch. 2.1 - Interpreting Effects of Outliers Refer to Data Set...Ch. 2.2 - Heights Heights of adult males are normally...Ch. 2.2 - More Heights The population of heights of adult...Ch. 2.2 - Blood Platelet Counts Listed below are blood...Ch. 2.2 - Blood Platelet Counts If we collect a sample of...Ch. 2.2 - Interpreting a Histogram. In Exercises 58, answer...Ch. 2.2 - Prob. 6BSCCh. 2.2 - Interpreting a Histogram. In Exercises 58, answer...Ch. 2.2 - Prob. 8BSCCh. 2.2 - Constructing Histograms. In Exercises 9-16,...Ch. 2.2 - Constructing Histograms. In Exercises 9-16,...Ch. 2.2 - Burger King Lunch Service Times Use the frequency...Ch. 2.2 - Burger King Dinner Service Times Use the frequency...Ch. 2.2 - Wendys Lunch Service Times Use the frequency...Ch. 2.2 - Wendys Dinner Service Times Use the frequency...Ch. 2.2 - Analysis of Last Digits Use the frequency...Ch. 2.2 - Analysis of Last Digits Use the frequency...Ch. 2.2 - Back-to-Back Relative Frequency Histograms When...Ch. 2.2 - Interpreting Normal Quantile Plots Which of the...Ch. 2.3 - Body Temperatures Listed below are body...Ch. 2.3 - Voluntary Response Data If we have a large...Ch. 2.3 - Ethics There are data showing that smoking is...Ch. 2.3 - CVDOT Section 2-1 introduced important...Ch. 2.3 - Dotplots. In Exercises 5 and 6, construct the...Ch. 2.3 - Diastolic Blood Pressure Listed below are...Ch. 2.3 - Stem plots. In Exercises 7 and 8, construct the...Ch. 2.3 - Stemplots. In Exercises 7 and 8, construct the...Ch. 2.3 - Time-Series Graphs. In Exercises 9 and 10,...Ch. 2.3 - Time-Series Graphs. In Exercises 9 and 10,...Ch. 2.3 - Pareto Charts. In Exercises 11 and 12 construct...Ch. 2.3 - Pareto Charts. In Exercises 11 and 12 construct...Ch. 2.3 - Pie Charts. In Exercises 13 and 14, construct the...Ch. 2.3 - Pie Charts. In Exercises 13 and 14, construct the...Ch. 2.3 - Frequency Polygon. In Exercises 15 and 16,...Ch. 2.3 - Frequency Polygon. In Exercises 15 and 16,...Ch. 2.3 - Self-Driving Vehicles In a survey of adults,...Ch. 2.3 - Deceptive Graphs. In Exercises 17-20, identify how...Ch. 2.3 - Deceptive Graphs. In Exercises 17-20, identify how...Ch. 2.3 - Deceptive Graphs. In Exercises 17-20, identify how...Ch. 2.3 - Expanded Stemplots A stemplot can be condensed by...Ch. 2.4 - Linear Correlation In this section we use r to...Ch. 2.4 - Causation A study has shown that there is a...Ch. 2.4 - Scanerplot What is a scatterplot and how does it...Ch. 2.4 - Estimating r For each of the following, estimate...Ch. 2.4 - Scatterplot. In Exercises 5-8, use the sample data...Ch. 2.4 - Scatterplot. In Exercises 5-8, use the sample data...Ch. 2.4 - Scatterplot. In Exercises 5-8, use the sample data...Ch. 2.4 - Scatterplot. In Exercises 5-8, use the sample data...Ch. 2.4 - Linear Correlation Coefficient In Exercises 9-12,...Ch. 2.4 - Linear Correlation Coefficient In Exercises 9-12,...Ch. 2.4 - Linear Correlation Coefficient In Exercises 9-12,...Ch. 2.4 - Using the data from Exercise 8 Heights of Fathers...Ch. 2.4 - Prob. 13BBCh. 2.4 - P-Values In Exercises 13-16, write a statement...Ch. 2.4 - P-Values In Exercises 13-16, write a statement...Ch. 2.4 - P-Values In Exercises 13-16, write a statement...Ch. 2 - Cookies Refer to the accompanying frequency...Ch. 2 - Cookies Using the same frequency distribution from...Ch. 2 - Cookies Using the same frequency distribution from...Ch. 2 - Cookies A stemplot of the same cookies summarized...Ch. 2 - Computers As a quality control manager at Texas...Ch. 2 - Distribution of Wealth In recent years, there has...Ch. 2 - Health Test In an investigation of a relationship...Ch. 2 - Lottery In Floridas Play 4 lottery game, four...Ch. 2 - Seatbelts The Beams Seatbelts company...Ch. 2 - Seatbelts A histogram is to be constructed from...Ch. 2 - Frequency Distribution of Body Temperatures...Ch. 2 - Histogram of Body Temperatures Construct the...Ch. 2 - Dotplot of Body Temperatures Construct a dotplot...Ch. 2 - Stemplot of Body Temperatures Construct a stemplot...Ch. 2 - Body Temperatures Listed below are the...Ch. 2 - Environment a. After collecting the average (mean)...Ch. 2 - Its Like Time Do This Exercise In a Marist survey...Ch. 2 - Whatever Use the same data from Exercise 7 to...Ch. 2 - In Exercises 1-6 refer to the data below, which...Ch. 2 - Frequency Distribution For the frequency...Ch. 2 - In Exercises 1-6, refer to the data below, which...Ch. 2 - In Exercises 1-6, refer to the data below, which...Ch. 2 - In Exercises 1-6, refer to the data below, which...Ch. 2 - Data Type a. The listed playing times are all...Ch. 2 - It was stated in this chapter that the days of...Ch. 2 - Fast Food Restaurant Drive-Through Service Times:...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.Similar questions
- Business discussarrow_forwardBusiness discussarrow_forwardI just need to know why this is wrong below: What is the test statistic W? W=5 (incorrect) and What is the p-value of this test? (p-value < 0.001-- incorrect) Use the Wilcoxon signed rank test to test the hypothesis that the median number of pages in the statistics books in the library from which the sample was taken is 400. A sample of 12 statistics books have the following numbers of pages pages 127 217 486 132 397 297 396 327 292 256 358 272 What is the sum of the negative ranks (W-)? 75 What is the sum of the positive ranks (W+)? 5What type of test is this? two tailedWhat is the test statistic W? 5 These are the critical values for a 1-tailed Wilcoxon Signed Rank test for n=12 Alpha Level 0.001 0.005 0.01 0.025 0.05 0.1 0.2 Critical Value 75 70 68 64 60 56 50 What is the p-value for this test? p-value < 0.001arrow_forward
- ons 12. A sociologist hypothesizes that the crime rate is higher in areas with higher poverty rate and lower median income. She col- lects data on the crime rate (crimes per 100,000 residents), the poverty rate (in %), and the median income (in $1,000s) from 41 New England cities. A portion of the regression results is shown in the following table. Standard Coefficients error t stat p-value Intercept -301.62 549.71 -0.55 0.5864 Poverty 53.16 14.22 3.74 0.0006 Income 4.95 8.26 0.60 0.5526 a. b. Are the signs as expected on the slope coefficients? Predict the crime rate in an area with a poverty rate of 20% and a median income of $50,000. 3. Using data from 50 workarrow_forward2. The owner of several used-car dealerships believes that the selling price of a used car can best be predicted using the car's age. He uses data on the recent selling price (in $) and age of 20 used sedans to estimate Price = Po + B₁Age + ε. A portion of the regression results is shown in the accompanying table. Standard Coefficients Intercept 21187.94 Error 733.42 t Stat p-value 28.89 1.56E-16 Age -1208.25 128.95 -9.37 2.41E-08 a. What is the estimate for B₁? Interpret this value. b. What is the sample regression equation? C. Predict the selling price of a 5-year-old sedan.arrow_forwardian income of $50,000. erty rate of 13. Using data from 50 workers, a researcher estimates Wage = Bo+B,Education + B₂Experience + B3Age+e, where Wage is the hourly wage rate and Education, Experience, and Age are the years of higher education, the years of experience, and the age of the worker, respectively. A portion of the regression results is shown in the following table. ni ogolloo bash 1 Standard Coefficients error t stat p-value Intercept 7.87 4.09 1.93 0.0603 Education 1.44 0.34 4.24 0.0001 Experience 0.45 0.14 3.16 0.0028 Age -0.01 0.08 -0.14 0.8920 a. Interpret the estimated coefficients for Education and Experience. b. Predict the hourly wage rate for a 30-year-old worker with four years of higher education and three years of experience.arrow_forward
- 1. If a firm spends more on advertising, is it likely to increase sales? Data on annual sales (in $100,000s) and advertising expenditures (in $10,000s) were collected for 20 firms in order to estimate the model Sales = Po + B₁Advertising + ε. A portion of the regression results is shown in the accompanying table. Intercept Advertising Standard Coefficients Error t Stat p-value -7.42 1.46 -5.09 7.66E-05 0.42 0.05 8.70 7.26E-08 a. Interpret the estimated slope coefficient. b. What is the sample regression equation? C. Predict the sales for a firm that spends $500,000 annually on advertising.arrow_forwardCan you help me solve problem 38 with steps im stuck.arrow_forwardHow do the samples hold up to the efficiency test? What percentages of the samples pass or fail the test? What would be the likelihood of having the following specific number of efficiency test failures in the next 300 processors tested? 1 failures, 5 failures, 10 failures and 20 failures.arrow_forward
- The battery temperatures are a major concern for us. Can you analyze and describe the sample data? What are the average and median temperatures? How much variability is there in the temperatures? Is there anything that stands out? Our engineers’ assumption is that the temperature data is normally distributed. If that is the case, what would be the likelihood that the Safety Zone temperature will exceed 5.15 degrees? What is the probability that the Safety Zone temperature will be less than 4.65 degrees? What is the actual percentage of samples that exceed 5.25 degrees or are less than 4.75 degrees? Is the manufacturing process producing units with stable Safety Zone temperatures? Can you check if there are any apparent changes in the temperature pattern? Are there any outliers? A closer look at the Z-scores should help you in this regard.arrow_forwardNeed help pleasearrow_forwardPlease conduct a step by step of these statistical tests on separate sheets of Microsoft Excel. If the calculations in Microsoft Excel are incorrect, the null and alternative hypotheses, as well as the conclusions drawn from them, will be meaningless and will not receive any points. 4. One-Way ANOVA: Analyze the customer satisfaction scores across four different product categories to determine if there is a significant difference in means. (Hints: The null can be about maintaining status-quo or no difference among groups) H0 = H1=arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw Hill
Big Ideas Math A Bridge To Success Algebra 1: Stu...AlgebraISBN:9781680331141Author:HOUGHTON MIFFLIN HARCOURTPublisher:Houghton Mifflin Harcourt
Algebra and Trigonometry (MindTap Course List)AlgebraISBN:9781305071742Author:James Stewart, Lothar Redlin, Saleem WatsonPublisher:Cengage Learning
Holt Mcdougal Larson Pre-algebra: Student Edition...AlgebraISBN:9780547587776Author:HOLT MCDOUGALPublisher:HOLT MCDOUGAL
Trigonometry (MindTap Course List)TrigonometryISBN:9781337278461Author:Ron LarsonPublisher:Cengage Learning
Glencoe Algebra 1, Student Edition, 9780079039897...
Algebra
ISBN:9780079039897
Author:Carter
Publisher:McGraw Hill
Big Ideas Math A Bridge To Success Algebra 1: Stu...
Algebra
ISBN:9781680331141
Author:HOUGHTON MIFFLIN HARCOURT
Publisher:Houghton Mifflin Harcourt
Algebra and Trigonometry (MindTap Course List)
Algebra
ISBN:9781305071742
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:Cengage Learning
Holt Mcdougal Larson Pre-algebra: Student Edition...
Algebra
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
Trigonometry (MindTap Course List)
Trigonometry
ISBN:9781337278461
Author:Ron Larson
Publisher:Cengage Learning
Correlation Vs Regression: Difference Between them with definition & Comparison Chart; Author: Key Differences;https://www.youtube.com/watch?v=Ou2QGSJVd0U;License: Standard YouTube License, CC-BY
Correlation and Regression: Concepts with Illustrative examples; Author: LEARN & APPLY : Lean and Six Sigma;https://www.youtube.com/watch?v=xTpHD5WLuoA;License: Standard YouTube License, CC-BY