Introductory Statistics (2nd Edition)
2nd Edition
ISBN: 9780321978271
Author: Robert Gould, Colleen N. Ryan
Publisher: PEARSON
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Textbook Question
Chapter 3, Problem 48SE
Center and Variation When you are comparing two sets of data and one set is strongly skewed and the other is symmetric, which measures of the center and variation should you choose for the comparison?
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We consider the one-period model studied in class as an example. Namely, we assumethat the current stock price is S0 = 10. At time T, the stock has either moved up toSt = 12 (with probability p = 0.6) or down towards St = 8 (with probability 1−p = 0.4).We consider a call option on this stock with maturity T and strike price K = 10. Theinterest rate on the money market is zero.As in class, we assume that you, as a customer, are willing to buy the call option on100 shares of stock for $120. The investor, who sold you the option, can adopt one of thefollowing strategies: Strategy 1: (seen in class) Buy 50 shares of stock and borrow $380. Strategy 2: Buy 55 shares of stock and borrow $430. Strategy 3: Buy 60 shares of stock and borrow $480. Strategy 4: Buy 40 shares of stock and borrow $280.(a) For each of strategies 2-4, describe the value of the investor’s portfolio at time 0,and at time T for each possible movement of the stock.(b) For each of strategies 2-4, does the investor have…
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Chapter 3 Solutions
Introductory Statistics (2nd Edition)
Ch. 3 - Earnings A sociologist says, “Typically, men in...Ch. 3 - Houses A real estate agent claims that all things...Ch. 3 - Age of CEOs (Example) the histogram shows the ages...Ch. 3 - Televisions The histogram shows the number of...Ch. 3 - Billionaires According to Forbes.com, the numbers...Ch. 3 - Billionaires According to Forbes.com, the numbers...Ch. 3 - Paid Vacation Days (Example 2) This list...Ch. 3 - Children of First Ladies This list represents the...Ch. 3 - Ages of Presidents at Inauguration At their...Ch. 3 - Ages of Chief Justices at Installation At their...
Ch. 3 - Weight Loss (Example 3) The table shows Minitab...Ch. 3 - Education of Father and Mother The table shows...Ch. 3 - Surfing College students and surfers Rex Robinson...Ch. 3 - Eating Out College student Jacqueline Loya asked a...Ch. 3 - Real state price (Example) look at the two...Ch. 3 - Dice The histogram contain data with a range of 1...Ch. 3 - Birth Weights (Example 5) The mean birth weigh for...Ch. 3 - Birth Length The mean birth length for U.S....Ch. 3 - Children’s Ages (Example 6) Mrs. Johnson’s...Ch. 3 - Pay Rate in Different Currencies The pay rates for...Ch. 3 - Olympics In the most recent summer Olympics, do...Ch. 3 - Weights Suppose you have a data set with the...Ch. 3 - Brain Size The brain size (in hundreds of...Ch. 3 - Happiness A survey on StatCrunch asked people to...Ch. 3 - Drinkers The number of alcoholic drinks per week...Ch. 3 - Prob. 26SECh. 3 - Violent Crime: West (Example 7) In 2011, the mean...Ch. 3 - Violent Crime: East In 2011, the mean rate of...Ch. 3 - Property Crime (Example 8) In 2011, the mean...Ch. 3 - Property Crime In 2011, the mean property crime...Ch. 3 - Heights and z-Scores The dotplot shows heights of...Ch. 3 - Heights Refer to the dotplot in the previous...Ch. 3 - Unusual IQs (Example 9) Wechsler IQ tests have a...Ch. 3 - Lengths of Pregnancy Distributions of gestation...Ch. 3 - Low-Birth-Weight Babies (Example 10) Babies born...Ch. 3 - Birth Lengths Babies born after 40 weeks gestation...Ch. 3 - Women's Heights Assume that women's heights have a...Ch. 3 - SATs The quantitative portion of the SAT exam has...Ch. 3 - Name two measures of the center of a distribution,...Ch. 3 - Name two measures of the variation of a...Ch. 3 - Pixar Animated Movies (Example 11) The ten...Ch. 3 - DreamWorks Animated Movies The ten top-grossing...Ch. 3 - Pixar Animated Movies Again (Example 12) Find the...Ch. 3 - Dreamworks Animated Movies Find the median and...Ch. 3 - Prob. 45SECh. 3 - Drinks The number of alcoholic drinks per week is...Ch. 3 - Outliers a. In your own words, describe to someone...Ch. 3 - Center and Variation When you are comparing two...Ch. 3 - An Error A dieter recorded the number of calories...Ch. 3 - Baseball Strike In 1994, Major League Baseball...Ch. 3 - Heads The graphs show the circumferences of heads...Ch. 3 - House Prices The graphs show the house prices (in...Ch. 3 - Shoes (Example 14) The histograms show the number...Ch. 3 - Tax Rate A StatCrunch survey asked people what...Ch. 3 - Regional Population Density The figure shows the...Ch. 3 - Property Crime Rates The boxplot shows the...Ch. 3 - City Temperatures The boxplot shows temperatures...Ch. 3 - Brain Size The boxplots show the brain size (in...Ch. 3 - Matching Boxplots and Histograms a. Report the...Ch. 3 - Matching Boxplots and Histograms Match each of the...Ch. 3 - Sleep Time of Animals Data at this text's website...Ch. 3 - BA Percentage The data show the percentage of...Ch. 3 - Tall Buildings The dotplot shows the distribution...Ch. 3 - Passing the Bar Exam The dotplot shows the...Ch. 3 - Exam Scores The five-number summary for a...Ch. 3 - Exam Scores The five-number summary for a...Ch. 3 - Death Row: South (Example 15) The table shows the...Ch. 3 - Death Row: West The table shows the numbers of...Ch. 3 - Head Circumference (Example 16) Following are head...Ch. 3 - Heights of Sons and Dads The data at this text’s...Ch. 3 - Final Exam Grades The data that follow are final...Ch. 3 - Speeding Tickets College students Diane Glover and...Ch. 3 - Heights The following graph shows the heights for...Ch. 3 - Marathon Times The following histogram of marathon...Ch. 3 - Soda Consumption A StatCrunch survey asked people...Ch. 3 - Holiday Spending A StatCrunch survey asked people...Ch. 3 - a. State an approximate value for the mean height...Ch. 3 - Ideal Family In 2012, the General Social Survey...Ch. 3 - For exercises 3.85 through 3.88, construct two...Ch. 3 - For exercises 3.85 through 3.88, construct two...Ch. 3 - For exercises 3.85 through 3.88, construct two...Ch. 3 - 3.79-3.82 construct two sets of numbers with at...Ch. 3 - Population Density Data were recorded for each of...Ch. 3 - Population Increase Data were recorded for each of...Ch. 3 - Prob. 85CRECh. 3 - Eating Out, Again College student Jacqueline Loya...Ch. 3 - Study Hours A group of 50 statistics students, 25...Ch. 3 - Driving Accidents College student Sandy Hudson...Ch. 3 - Exam Scores An exam has a mean of 70 and a...Ch. 3 - Boys’ Heights Three-year-old boys in the United...Ch. 3 - SAT and ACT Scores Quantitative SAT scores have a...Ch. 3 - Children’s Heights Mrs. Diaz has two children: a...Ch. 3 - Students’ Ages Here are the ages of some students...Ch. 3 - House Prices The figure, which is from data taken...
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- Characterize (with proof) all connected graphs that contain no even cycles in terms oftheir blocks.arrow_forwardLet G be a connected graph that does not have P4 or C3 as an induced subgraph (i.e.,G is P4, C3 free). Prove that G is a complete bipartite grapharrow_forwardProve sufficiency of the condition for a graph to be bipartite that is, prove that if G hasno odd cycles then G is bipartite as follows:Assume that the statement is false and that G is an edge minimal counterexample. That is, Gsatisfies the conditions and is not bipartite but G − e is bipartite for any edge e. (Note thatthis is essentially induction, just using different terminology.) What does minimality say aboutconnectivity of G? Can G − e be disconnected? Explain why if there is an edge between twovertices in the same part of a bipartition of G − e then there is an odd cyclearrow_forward
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