Introductory Statistics (2nd Edition)
2nd Edition
ISBN: 9780321978271
Author: Robert Gould, Colleen N. Ryan
Publisher: PEARSON
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Chapter 3, Problem 72CRE
Speeding Tickets College students Diane Glover and Esmeralda Olguin asked 25 men and 25 women how many speeding tickets they had received in the last three years.
Men: 14 men said they had 0 tickets, 9 said they had 1 ticket, 1 had 2 tickets, and 1 had 5 tickets.
Women: 18 said they had 0 tickets, 6 said they had 1 ticket, and 1 said she had 2 tickets.
Is there evidence that the men and women differed? Answer by making appropriate plots and comparing appropriate summary statistics. Be sure to comment on the shape of the distributions and to mention any unusual features you observe.
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Problem1
We consider a two-period binomial model with the following properties: each period lastsone (1) year and the current stock price is S0 = 4. On each period, the stock price doubleswhen it moves up and is reduced by half when it moves down. The annual interest rateon the money market is 25%. (This model is the same as in Prob. 1 of HW#2).We consider four options on this market: A European call option with maturity T = 2 years and strike price K = 5; A European put option with maturity T = 2 years and strike price K = 5; An American call option with maturity T = 2 years and strike price K = 5; An American put option with maturity T = 2 years and strike price K = 5.(a) Find the price at time 0 of both European options.(b) Find the price at time 0 of both American options. Compare your results with (a)and comment.(c) For each of the American options, describe the optimal exercising strategy.
Problem 1.We consider a two-period binomial model with the following properties: each period lastsone (1) year and the current stock price is S0 = 4. On each period, the stock price doubleswhen it moves up and is reduced by half when it moves down. The annual interest rateon the money market is 25%.
We consider four options on this market: A European call option with maturity T = 2 years and strike price K = 5; A European put option with maturity T = 2 years and strike price K = 5; An American call option with maturity T = 2 years and strike price K = 5; An American put option with maturity T = 2 years and strike price K = 5.(a) Find the price at time 0 of both European options.(b) Find the price at time 0 of both American options. Compare your results with (a)and comment.(c) For each of the American options, describe the optimal exercising strategy.(d) We assume that you sell the American put to a market participant A for the pricefound in (b). Explain how you act on the market…
What is the standard scores associated to the left of z is 0.1446
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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