Introductory Statistics
3rd Edition
ISBN: 9780135188927
Author: Gould, Robert, Ryan, Colleen N. (colleen Nooter)
Publisher: Pearson,
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Chapter 3, Problem 4SE
Sodium The following histogram shows the sodium level for 132 people (from the National Health and Nutrition Examination Survey [NHANES]). The units are milliequivalents per liter. Without calculating, give the approximate
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Question 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?
Question 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.)
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.)
Chapter 3 Solutions
Introductory Statistics
Ch. 3 - Earnings A sociologist says, “Typically, men in...Ch. 3 - Houses A real estate agent claims that all things...Ch. 3 - Exercise Hours (Example 1) The histogram shows the...Ch. 3 - Sodium The following histogram shows the sodium...Ch. 3 - Tall Buildings The table shows the location and...Ch. 3 - Roller Coasters The table shows the names and...Ch. 3 - River Lengths (Example 2) The table shows the...Ch. 3 - Children of First Ladies This list represents the...Ch. 3 - 200-Meter Run The table show the gold medal...Ch. 3 - Olympic Swimming Times The table shows the...
Ch. 3 - Wedding Costs by Gender (Example 3) StatCrunch did...Ch. 3 - Wedding Costs by Experience StatCrunch did a...Ch. 3 - Surfing College students and surfers Rex Robinson...Ch. 3 - State College Tuition The tuition costs (in...Ch. 3 - Winter Temperatures San Jose and Denver (Example...Ch. 3 - Summer Temperatures L.A. and NYC The histograms...Ch. 3 - Weight Gain during Pregnancy (Example 5) The mean...Ch. 3 - Birth Length The mean birth length for U.S....Ch. 3 - Orange Juice Prices (Example 6) From Amazon.com,...Ch. 3 - Sibling Ages Four siblings are 2, 6, 9, and 10...Ch. 3 - Olympics In the most recent summer Olympics, do...Ch. 3 - Weights Suppose you have a data set with the...Ch. 3 - Home Prices (SC and TN) The prices (in $ thousand)...Ch. 3 - Home Prices (FL and GA) The prices (in $ thousand)...Ch. 3 - Drinkers The number of alcoholic drinks per week...Ch. 3 - Prob. 26SECh. 3 - Standard Deviation Is it possible for a standard...Ch. 3 - Standard Deviation Is it possible for a standard...Ch. 3 - Major League Baseball Runs (Example 7) The...Ch. 3 - Residential Energy Consumption (East) Data on...Ch. 3 - Pollution Index (Example 8) In 2017 a pollution...Ch. 3 - Pollution Index In 2017 a pollution index was...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 - Men’s Heights Assume that men’s heights have a...Ch. 3 - Women’s Heights Assume that women’s heights have a...Ch. 3 - Name two measures of the center of a distribution,...Ch. 3 - Name two measures of the variation of a...Ch. 3 - Marvel Movies (Example 11 and 13) The top ten...Ch. 3 - DC Movies The top seven movies based on DC comic...Ch. 3 - Top Seven Marvel Movies (Example 12) Use the data...Ch. 3 - Top Five DC Movies Use the data in Exercise 3.44,...Ch. 3 - Total Energy Consumption Data was collected on the...Ch. 3 - Industrial Energy Consumption Data was collected...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 - Home Prices Home prices in San Luis Obispo County...Ch. 3 - Youth Heights The National Longitudinal Survey...Ch. 3 - Senator Years in Office (Example 14) The following...Ch. 3 - MLB Player Ages The following histograms show the...Ch. 3 - Prob. 57SECh. 3 - Death Row: West The following table shows the...Ch. 3 - The Consumer Price Index (CPI) (Example 16)...Ch. 3 - Prob. 60SECh. 3 - Prob. 61SECh. 3 - Mean from a Histogram The histogram shows the...Ch. 3 - Poverty Rates The following boxplot shows the...Ch. 3 - Regional Population Density The figure shows the...Ch. 3 - Professional Sport Ticket Prices The following...Ch. 3 - BA Attainment The following boxplot shows the...Ch. 3 - Matching Boxplots and Histograms a. Report the...Ch. 3 - Matching Boxplots and Histograms Match each of the...Ch. 3 - Public Libraries Data at this text’s website show...Ch. 3 - Gas Taxes Data at this text’s website show the gas...Ch. 3 - Roller Coaster Heights (Example 17) The dotplot...Ch. 3 - Passing the Bar Exam The following dotplot shows...Ch. 3 - Exam Scores The five-number summary for a...Ch. 3 - Exam Scores The five-number summary for a...Ch. 3 - Prob. 75CRECh. 3 - Gas Taxes (West) The following table shows the gas...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 - Prob. 81CRECh. 3 - Chain Restaurant Calories The New York Times...Ch. 3 - 12th-Grade Sleep The histogram shows hours of...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 - For exercises 3.85 through 3.88, construct two...Ch. 3 - Educational Attainment The tables below show the...Ch. 3 - Unemployment Rates The tables below show the 2015...Ch. 3 - Professional Sports Ticket Prices The following...Ch. 3 - Professional Sports Ticket Prices The following...Ch. 3 - Exam Scores An exam score has a mean of 80 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 - Prob. 97CRECh. 3 - Students’ Ages Here are the ages of some students...Ch. 3 - Race Times The following graph shows the time it...Ch. 3 - Prob. 100CRECh. 3 - Prob. 101CRECh. 3 - Prob. 102CRE
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