Mathematical Statistics with Applications
7th Edition
ISBN: 9781111798789
Author: Dennis O. Wackerly
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 3, Problem 185SE
a
To determine
Find the
b
To determine
Explain what conclusion do you draw based on your answer to part (a).
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
1 No.
2
3
4
Binomial Prob.
X
n
P
Answer
5
6 4
7
8
9
10
12345678
8
3
4
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
12
10
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
2
1.5
0.251
12
10
0.095
5
3
0.101
7
4
0.060
3
2
0.180
2
1.5
0.251
24 10
12
10
0.095
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 3 Solutions
Mathematical Statistics with Applications
Ch. 3.2 - When the health department tested private wells in...Ch. 3.2 - You and a friend play a game where you each toss a...Ch. 3.2 - A group of four components is known to contain two...Ch. 3.2 - Consider a system of water flowing through valves...Ch. 3.2 - A problem in a test given to small children asks...Ch. 3.2 - Five balls, numbered 1, 2, 3, 4, and 5, are placed...Ch. 3.2 - Each of three balls are randomly placed into one...Ch. 3.2 - A single cell can either die, with probability .1,...Ch. 3.2 - In order to verify the accuracy of their financial...Ch. 3.2 - A rental agency, which leases heavy equipment by...
Ch. 3.2 - Persons entering a blood bank are such that 1 in 3...Ch. 3.3 - Let Y be a random variable with p(y) given in the...Ch. 3.3 - Refer to the coin-tossing game in Exercise 3.2....Ch. 3.3 - The maximum patent life for a new drug is 17...Ch. 3.3 - Who is the king of late night TV? An Internet...Ch. 3.3 - Prob. 16ECh. 3.3 - Refer to Exercise 3.7. Find the mean and standard...Ch. 3.3 - Refer to Exercise 3.8. What is the mean number of...Ch. 3.3 - An insurance company issues a one-year 1000...Ch. 3.3 - A manufacturing company ships its product in two...Ch. 3.3 - The number N of residential homes that a fire...Ch. 3.3 - A single fair die is tossed once. Let Y be the...Ch. 3.3 - In a gambling game a person draws a single card...Ch. 3.3 - Approximately 10% of the glass bottles coming off...Ch. 3.3 - Two construction contracts are to be randomly...Ch. 3.3 - A heavy-equipment salesperson can contact either...Ch. 3.3 - A potential customer for an 85,000 fire insurance...Ch. 3.3 - Refer to Exercise 3.3. If the cost of testing a...Ch. 3.3 - If Y is a discrete random variable that assigns...Ch. 3.3 - Suppose that Y is a discrete random variable with...Ch. 3.3 - Suppose that Y is a discrete random variable with...Ch. 3.3 - Suppose that Y is a discrete random variable with...Ch. 3.3 - Let Y be a discrete random variable with mean and...Ch. 3.3 - The manager of a stockroom in a factory has...Ch. 3.4 - Consider the population of voters described in...Ch. 3.4 - a. A meteorologist in Denver recorded Y = the...Ch. 3.4 - In 2003, the average combined SAT score (math and...Ch. 3.4 - The manufacturer of a low-calorie dairy drink...Ch. 3.4 - A complex electronic system is built with a...Ch. 3.4 - The probability that a patient recovers from a...Ch. 3.4 - A multiple-choice examination has 15 questions,...Ch. 3.4 - Refer to Exercise 3.41. What is the probability...Ch. 3.4 - Many utility companies promote energy conservation...Ch. 3.4 - Prob. 44ECh. 3.4 - A fire-detection device utilizes three...Ch. 3.4 - Prob. 46ECh. 3.4 - Use Table 1, Appendix 3, to construct a...Ch. 3.4 - A missile protection system consists of n radar...Ch. 3.4 - A manufacturer of floor wax has developed two new...Ch. 3.4 - In Exercise 2.151, you considered a model for the...Ch. 3.4 - In the 18th century, the Chevalier de Mere asked...Ch. 3.4 - Prob. 52ECh. 3.4 - Tay-Sachs disease is a genetic disorder that is...Ch. 3.4 - Suppose that Y is a binomial random variable based...Ch. 3.4 - Suppose that Y is a binomial random variable with...Ch. 3.4 - An oil exploration firm is formed with enough...Ch. 3.4 - Refer to Exercise 3.56. Suppose the firm has a...Ch. 3.4 - A particular sale involves four items randomly...Ch. 3.4 - Ten motors are packaged for sale in a certain...Ch. 3.4 - A particular concentration of a chemical found in...Ch. 3.4 - Of the volunteers donating blood in a clinic, 80%...Ch. 3.4 - Prob. 62ECh. 3.4 - Consider the binomial distribution with n trials...Ch. 3.4 - Prob. 64ECh. 3.4 - Prob. 65ECh. 3.5 - Suppose that Y is a random variable with a...Ch. 3.5 - Suppose that 30% of the applicants for a certain...Ch. 3.5 - Refer to Exercise 3.67. What is the expected...Ch. 3.5 - About six months into George W. Bushs second term...Ch. 3.5 - An oil prospector will drill a succession of holes...Ch. 3.5 - Prob. 71ECh. 3.5 - Prob. 72ECh. 3.5 - A certified public accountant (CPA) has found that...Ch. 3.5 - Refer to Exercise 3.73. What are the mean and...Ch. 3.5 - The probability of a customer arrival at a grocery...Ch. 3.5 - Prob. 76ECh. 3.5 - If Y has a geometric distribution with success...Ch. 3.5 - Of a population of consumers, 60% are reputed to...Ch. 3.5 - In responding to a survey question on a sensitive...Ch. 3.5 - Two people took turns tossing a fair die until one...Ch. 3.5 - How many times would you expect to toss a balanced...Ch. 3.5 - Refer to Exercise 3.70. The prospector drills...Ch. 3.5 - The secretary in Exercises 2.121 and 3.16 was...Ch. 3.5 - Refer to Exercise 3.83. Find the mean and the...Ch. 3.5 - Find E[Y(Y 1)] for a geometric random variable Y...Ch. 3.5 - Prob. 86ECh. 3.5 - Prob. 87ECh. 3.5 - If Y is a geometric random variable, define Y = Y ...Ch. 3.5 - Prob. 89ECh. 3.6 - The employees of a firm that manufactures...Ch. 3.6 - Refer to Exercise 3.90. If each test costs 20,...Ch. 3.6 - Ten percent of the engines manufactured on an...Ch. 3.6 - Refer to Exercise 3.92. What is the probability...Ch. 3.6 - Refer to Exercise 3.92. Find the mean and variance...Ch. 3.6 - Refer to Exercise 3.92. Given that the first two...Ch. 3.6 - The telephone lines serving an airline reservation...Ch. 3.6 - A geological study indicates that an exploratory...Ch. 3.6 - Prob. 98ECh. 3.6 - In a sequence of independent identical trials with...Ch. 3.6 - If Y is a negative binomial random variable,...Ch. 3.6 - Prob. 101ECh. 3.7 - An urn contains ten marbles, of which five are...Ch. 3.7 - A warehouse contains ten printing machines, four...Ch. 3.7 - Twenty identical looking packets of white power...Ch. 3.7 - In southern California, a growing number of...Ch. 3.7 - Refer to Exercise 3.103. The company repairs the...Ch. 3.7 - A group of six software packages available to...Ch. 3.7 - A shipment of 20 cameras includes 3 that are...Ch. 3.7 - Seed are often treated with fungicides to protect...Ch. 3.7 - A corporation is sampling without replacement for...Ch. 3.7 - Prob. 111ECh. 3.7 - Used photocopy machines are returned to the...Ch. 3.7 - A jury of 6 persons was selected from a group of...Ch. 3.7 - Refer to Exercise 3.113. If the selection process...Ch. 3.7 - Suppose that a radio contains six transistors, two...Ch. 3.7 - In an assembly-line production of industrial...Ch. 3.7 - Five cards are dealt at random and without...Ch. 3.7 - Cards are dealt at random and without replacement...Ch. 3.8 - Let Y denote a random variable that has a Poisson...Ch. 3.8 - Customers arrive at a checkout counter in a...Ch. 3.8 - The random variable Y has a Poisson distribution...Ch. 3.8 - Approximately 4% of silicon wafers produced by a...Ch. 3.8 - Refer to Exercise 3.122. If it takes approximately...Ch. 3.8 - Refer to Exercise 3.122. Assume that arrivals...Ch. 3.8 - The number of typing errors made by a typist has a...Ch. 3.8 - Cars arrive at a toll both according to a Poisson...Ch. 3.8 - Refer to Exercise 3.128. How long can the...Ch. 3.8 - A parking lot has two entrances. Cars arrive at...Ch. 3.8 - The number of knots in a particular type of wood...Ch. 3.8 - The mean number of automobiles entering a mountain...Ch. 3.8 - Assume that the tunnel in Exercise 3.132 is...Ch. 3.8 - Consider a binomial experiment for n = 20, p =...Ch. 3.8 - A salesperson has found that the probability of a...Ch. 3.8 - Increased research and discussion have focused on...Ch. 3.8 - The probability that a mouse inoculated with a...Ch. 3.8 - Let Y have a Poisson distribution with mean . Find...Ch. 3.8 - In the daily production of a certain kind of rope,...Ch. 3.8 - Prob. 140ECh. 3.8 - A food manufacturer uses an extruder (a machine...Ch. 3.8 - Prob. 142ECh. 3.8 - Refer to Exercise 3.142 (c). If the number of...Ch. 3.8 - Prob. 144ECh. 3.9 - Prob. 145ECh. 3.9 - Differentiate the moment-generating function in...Ch. 3.9 - Prob. 147ECh. 3.9 - Prob. 148ECh. 3.9 - Refer to Exercise 3.145. Use the uniqueness of...Ch. 3.9 - Refer to Exercise 3.147. Use the uniqueness of...Ch. 3.9 - Refer to Exercise 3.145. If Y has...Ch. 3.9 - Prob. 152ECh. 3.9 - Find the distributions of the random variables...Ch. 3.9 - Refer to Exercise 3.153. By inspection, give the...Ch. 3.9 - Let m(t)=(1/6)et+(2/6)e2t+(3/6)e3t. Find the...Ch. 3.9 - Suppose that Y is a random variable with...Ch. 3.9 - Refer to Exercise 3.156. a If W = 3Y, use the...Ch. 3.9 - Prob. 158ECh. 3.9 - Prob. 159ECh. 3.9 - Suppose that Y is a binomial random variable based...Ch. 3.9 - Prob. 161ECh. 3.9 - Prob. 162ECh. 3.9 - Prob. 163ECh. 3.10 - Prob. 164ECh. 3.10 - Prob. 165ECh. 3.10 - Prob. 166ECh. 3.11 - Let Y be a random variable with mean 11 and...Ch. 3.11 - Would you rather take a multiple-choice test or a...Ch. 3.11 - This exercise demonstrates that, in general, the...Ch. 3.11 - Prob. 170ECh. 3.11 - Prob. 171ECh. 3.11 - Prob. 172ECh. 3.11 - A balanced coin is tossed three times. Let Y equal...Ch. 3.11 - Prob. 174ECh. 3.11 - Prob. 175ECh. 3.11 - Prob. 176ECh. 3.11 - For a certain section of a pine forest, the number...Ch. 3.11 - Prob. 178ECh. 3.11 - Refer to Exercise 3.91. In this exercise, we...Ch. 3 - Prob. 180SECh. 3 - Prob. 181SECh. 3 - Prob. 182SECh. 3 - Prob. 183SECh. 3 - A city commissioner claims that 80% of the people...Ch. 3 - Prob. 185SECh. 3 - Refer to Exercises 3.67 and 3.68. Let Y denote the...Ch. 3 - Consider the following game: A player throws a...Ch. 3 - Prob. 188SECh. 3 - Prob. 189SECh. 3 - Toss a balanced die and let Y be the number of...Ch. 3 - Two assembly lines I and II have the same rate of...Ch. 3 - Prob. 194SECh. 3 - The number of imperfections in the weave of a...Ch. 3 - Refer to Exercise 3.195. The cost of repairing the...Ch. 3 - The number of bacteria colonies of a certain type...Ch. 3 - Prob. 198SECh. 3 - Insulin-dependent diabetes (IDD) is a common...Ch. 3 - Prob. 200SECh. 3 - Prob. 201SECh. 3 - The number of cars driving past a parking area in...Ch. 3 - Prob. 203SECh. 3 - The probability that any single driver will turn...Ch. 3 - An experiment consists of tossing a fair die until...Ch. 3 - Accident records collected by an automobile...Ch. 3 - Prob. 207SECh. 3 - Prob. 208SECh. 3 - Prob. 209SECh. 3 - Prob. 210SECh. 3 - A merchant stocks a certain perishable item. She...Ch. 3 - Prob. 212SECh. 3 - A lot of N = 100 industrial products contains...Ch. 3 - For simplicity, let us assume that there are two...Ch. 3 - Prob. 216SECh. 3 - Prob. 217SECh. 3 - Prob. 218SE
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
- 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
- Several markets (Japan, Switzerland) introduced negative interest rates on their money market. In this problem, we will consider an annual interest rate r < 0. We consider a stock modeled by an N-period CRR model where each period is 1 year (At = 1) and the up and down factors are u and d. (a) We consider an American put option with strike price K and expiration T. Prove that if <0, the optimal strategy is to wait until expiration T to exercise.arrow_forwardWe consider an N-period CRR model where each period is 1 year (At = 1), the up factor is u = 0.1, the down factor is d = e−0.3 and r = 0. We remind you that in the CRR model, the stock price at time tn is modeled (under P) by Sta = So exp (μtn + σ√AtZn), where (Zn) is a simple symmetric random walk. (a) Find the parameters μ and σ for the CRR model described above. (b) Find P Ste So 55/50 € > 1). StN (c) Find lim P 804-N (d) Determine q. (You can use e- 1 x.) Ste (e) Find Q So (f) Find lim Q 004-N StN Soarrow_forwardIn this problem, we consider a 3-period stock market model with evolution given in Fig. 1 below. Each period corresponds to one year. The interest rate is r = 0%. 16 22 28 12 16 12 8 4 2 time Figure 1: Stock evolution for Problem 1. (a) A colleague notices that in the model above, a movement up-down leads to the same value as a movement down-up. He concludes that the model is a CRR model. Is your colleague correct? (Explain your answer.) (b) We consider a European put with strike price K = 10 and expiration T = 3 years. Find the price of this option at time 0. Provide the replicating portfolio for the first period. (c) In addition to the call above, we also consider a European call with strike price K = 10 and expiration T = 3 years. Which one has the highest price? (It is not necessary to provide the price of the call.) (d) We now assume a yearly interest rate r = 25%. We consider a Bermudan put option with strike price K = 10. It works like a standard put, but you can exercise it…arrow_forward
- In this problem, we consider a 2-period stock market model with evolution given in Fig. 1 below. Each period corresponds to one year (At = 1). The yearly interest rate is r = 1/3 = 33%. This model is a CRR model. 25 15 9 10 6 4 time Figure 1: Stock evolution for Problem 1. (a) Find the values of up and down factors u and d, and the risk-neutral probability q. (b) We consider a European put with strike price K the price of this option at time 0. == 16 and expiration T = 2 years. Find (c) Provide the number of shares of stock that the replicating portfolio contains at each pos- sible position. (d) You find this option available on the market for $2. What do you do? (Short answer.) (e) We consider an American put with strike price K = 16 and expiration T = 2 years. Find the price of this option at time 0 and describe the optimal exercising strategy. (f) We consider an American call with strike price K ○ = 16 and expiration T = 2 years. Find the price of this option at time 0 and describe…arrow_forward2.2, 13.2-13.3) question: 5 point(s) possible ubmit test The accompanying table contains the data for the amounts (in oz) in cans of a certain soda. The cans are labeled to indicate that the contents are 20 oz of soda. Use the sign test and 0.05 significance level to test the claim that cans of this soda are filled so that the median amount is 20 oz. If the median is not 20 oz, are consumers being cheated? Click the icon to view the data. What are the null and alternative hypotheses? OA. Ho: Medi More Info H₁: Medi OC. Ho: Medi H₁: Medi Volume (in ounces) 20.3 20.1 20.4 Find the test stat 20.1 20.5 20.1 20.1 19.9 20.1 Test statistic = 20.2 20.3 20.3 20.1 20.4 20.5 Find the P-value 19.7 20.2 20.4 20.1 20.2 20.2 P-value= (R 19.9 20.1 20.5 20.4 20.1 20.4 Determine the p 20.1 20.3 20.4 20.2 20.3 20.4 Since the P-valu 19.9 20.2 19.9 Print Done 20 oz 20 oz 20 oz 20 oz ce that the consumers are being cheated.arrow_forwardT Teenage obesity (O), and weekly fast-food meals (F), among some selected Mississippi teenagers are: Name Obesity (lbs) # of Fast-foods per week Josh 185 10 Karl 172 8 Terry 168 9 Kamie Andy 204 154 12 6 (a) Compute the variance of Obesity, s²o, and the variance of fast-food meals, s², of this data. [Must show full work]. (b) Compute the Correlation Coefficient between O and F. [Must show full work]. (c) Find the Coefficient of Determination between O and F. [Must show full work]. (d) Obtain the Regression equation of this data. [Must show full work]. (e) Interpret your answers in (b), (c), and (d). (Full explanations required). Edit View Insert Format Tools Tablearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Holt Mcdougal Larson Pre-algebra: Student Edition...AlgebraISBN:9780547587776Author:HOLT MCDOUGALPublisher:HOLT MCDOUGAL
College Algebra (MindTap Course List)AlgebraISBN:9781305652231Author:R. David Gustafson, Jeff HughesPublisher:Cengage Learning
Algebra and Trigonometry (MindTap Course List)AlgebraISBN:9781305071742Author:James Stewart, Lothar Redlin, Saleem WatsonPublisher:Cengage Learning
Algebra & Trigonometry with Analytic GeometryAlgebraISBN:9781133382119Author:SwokowskiPublisher:Cengage
College AlgebraAlgebraISBN:9781305115545Author:James Stewart, Lothar Redlin, Saleem WatsonPublisher:Cengage Learning
Holt Mcdougal Larson Pre-algebra: Student Edition...
Algebra
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
College Algebra (MindTap Course List)
Algebra
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:Cengage Learning
Algebra and Trigonometry (MindTap Course List)
Algebra
ISBN:9781305071742
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:Cengage Learning
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:9781133382119
Author:Swokowski
Publisher:Cengage
College Algebra
Algebra
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:Cengage Learning
Find number of persons in a part with 66 handshakes Combinations; Author: Anil Kumar;https://www.youtube.com/watch?v=33TgLi-wp3E;License: Standard YouTube License, CC-BY
Discrete Math 6.3.1 Permutations and Combinations; Author: Kimberly Brehm;https://www.youtube.com/watch?v=J1m9sB5XZQc;License: Standard YouTube License, CC-BY
How to use permutations and combinations; Author: Mario's Math Tutoring;https://www.youtube.com/watch?v=NEGxh_D7yKU;License: Standard YouTube License, CC-BY
Permutations and Combinations | Counting | Don't Memorise; Author: Don't Memorise;https://www.youtube.com/watch?v=0NAASclUm4k;License: Standard Youtube License
Permutations and Combinations Tutorial; Author: The Organic Chemistry Tutor;https://www.youtube.com/watch?v=XJnIdRXUi7A;License: Standard YouTube License, CC-BY