An Introduction to Statistical Methods and Data Analysis
7th Edition
ISBN: 9781305269477
Author: R. Lyman Ott, Micheal T. Longnecker
Publisher: Cengage Learning
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Chapter 3.11, Problem 70SE
a.
To determine
Construct a
b.
To determine
Find the
c.
To determine
Explain why there may be a correlation between these two diseases.
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You have been hired as an intern to run analyses on the data and report the results back to Sarah; the five questions that Sarah needs you to address are given below. please do it step by step
Does there appear to be a positive or negative relationship between price and screen size? Use a scatter plot to examine the relationship.
Determine and interpret the correlation coefficient between the two variables. In your interpretation, discuss the direction of the relationship (positive, negative, or zero relationship). Also discuss the strength of the relationship.
Estimate the relationship between screen size and price using a simple linear regression model and interpret the estimated coefficients. (In your interpretation, tell the dollar amount by which price will change for each unit of increase in screen size).
Include the manufacturer dummy variable (Samsung=1, 0 otherwise) and estimate the relationship between screen size, price and manufacturer dummy as a multiple linear…
Exercises: Find all the whole number
solutions of the congruence equation.
1. 3x 8 mod 11
2. 2x+3= 8 mod 12
3. 3x+12= 7 mod 10
4. 4x+6= 5 mod 8
5. 5x+3= 8 mod 12
Scenario
Sales of products by color follow a peculiar, but predictable, pattern that determines how many units will sell in
any given year. This pattern is shown below
Product Color
1995
1996
1997
Red
28
42
21
1998
23
1999
29
2000
2001
2002
Unit Sales
2003 2004
15
8
4
2
1
2005 2006
discontinued
Green
26
39
20
22
28
14
7
4
2
White
43
65
33
36
45
23
12
Brown
58
87
44
48
60
Yellow
37
56
28
31
Black
28
42
21
Orange
19
29
Purple
Total
28
42
21
49
68
78
95
123
176
181
164
127
24
179
Questions
A) Which color will sell the most units in 2007?
B) Which color will sell the most units combined in the 2007 to 2009 period?
Please show all your analysis, leave formulas in cells, and specify any assumptions you make.
Chapter 3 Solutions
An Introduction to Statistical Methods and Data Analysis
Ch. 3.11 - The U.S. government spent more than $3.6 trillion...Ch. 3.11 - The type of vehicle the U.S public purchases...Ch. 3.11 - It has been reported that there has been a change...Ch. 3.11 - The regulations of the board of health in a...Ch. 3.11 - The National Highway Traffic Safety Administration...Ch. 3.11 - Prob. 6ECh. 3.11 - The survival times (in months) for two treatments...Ch. 3.11 - Combine the data from the separate therapies in...Ch. 3.11 - Prob. 9ECh. 3.11 - The following table presents homeownership rates,...
Ch. 3.11 - Prob. 11ECh. 3.11 - Prob. 12ECh. 3.11 - A supplier of high-quality audio equipment for...Ch. 3.11 - Prob. 14ECh. 3.11 - Compute the mean, median, and mode for the...Ch. 3.11 - Prob. 16ECh. 3.11 - Prob. 17ECh. 3.11 - Prob. 18ECh. 3.11 - A study of the reliability of buses [Large Sample...Ch. 3.11 - Prob. 20ECh. 3.11 - Prob. 21ECh. 3.11 - A study of the survival times, in days, of skin...Ch. 3.11 - Prob. 23ECh. 3.11 - Prob. 24ECh. 3.11 -
Refer to Exercise 3.24. Average the three group...Ch. 3.11 -
Pushing economy and wheelchair-propulsion...Ch. 3.11 - Prob. 27ECh. 3.11 - Prob. 28ECh. 3.11 -
The treatment times (in minutes) for patients at...Ch. 3.11 - To assist in estimating the amount of lumber in a...Ch. 3.11 -
Consumer Reports in its June 1998 issue reports...Ch. 3.11 - Many marine phanerogam species are highly...Ch. 3.11 - Prob. 33ECh. 3.11 - The following data are the resting pulse rates for...Ch. 3.11 - Consumer Reports in its May 1998 issue provides...Ch. 3.11 - Prob. 36ECh. 3.11 - Prob. 37ECh. 3.11 - Prob. 38ECh. 3.11 - In the paper “Demographic Implications of...Ch. 3.11 - Prob. 40ECh. 3.11 - Prob. 41ECh. 3.11 - Prob. 42ECh. 3.11 - Prob. 43SECh. 3.11 - Prob. 44SECh. 3.11 - Prob. 45SECh. 3.11 - Prob. 46SECh. 3.11 - Prob. 47SECh. 3.11 - Prob. 48SECh. 3.11 - A random sample of 90 standard metropolitan...Ch. 3.11 - Prob. 50SECh. 3.11 - Prob. 51SECh. 3.11 - Prob. 52SECh. 3.11 - Prob. 53SECh. 3.11 - The Insurance Institute for Highway Safety...Ch. 3.11 - Prob. 55SECh. 3.11 - Prob. 56SECh. 3.11 -
Federal authorities have destroyed considerable...Ch. 3.11 - The most widely reported index of the performance...Ch. 3.11 - As one part of a review of middle-manager...Ch. 3.11 - Prob. 60SECh. 3.11 - Prob. 61SECh. 3.11 - Prob. 62SECh. 3.11 - The correlations computed for the six variables in...Ch. 3.11 - Prob. 64SECh. 3.11 - Prob. 65SECh. 3.11 - Prob. 66SECh. 3.11 - Prob. 67SECh. 3.11 - Prob. 68SECh. 3.11 - Prob. 69SECh. 3.11 - Prob. 70SECh. 3.11 - Prob. 71SECh. 3.11 -
Refer to the data in Exercise 3.69.
Construct a...Ch. 3.11 - Prob. 73SECh. 3.11 - Prob. 74SECh. 3.11 - Prob. 75SECh. 3.11 - Prob. 76SECh. 3.11 - Prob. 77SECh. 3.11 - Prob. 78SECh. 3.11 - Prob. 79SECh. 3.11 - Prob. 80SE
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- One hundred students were surveyed about their preference between dogs and cats. The following two-way table displays data for the sample of students who responded to the survey. Preference Male Female TOTAL Prefers dogs \[36\] \[20\] \[56\] Prefers cats \[10\] \[26\] \[36\] No preference \[2\] \[6\] \[8\] TOTAL \[48\] \[52\] \[100\] problem 1 Find the probability that a randomly selected student prefers dogs.Enter your answer as a fraction or decimal. \[P\left(\text{prefers dogs}\right)=\] Incorrect Check Hide explanation Preference Male Female TOTAL Prefers dogs \[\blueD{36}\] \[\blueD{20}\] \[\blueE{56}\] Prefers cats \[10\] \[26\] \[36\] No preference \[2\] \[6\] \[8\] TOTAL \[48\] \[52\] \[100\] There were \[\blueE{56}\] students in the sample who preferred dogs out of \[100\] total students.arrow_forwardBusiness discussarrow_forwardYou have been hired as an intern to run analyses on the data and report the results back to Sarah; the five questions that Sarah needs you to address are given below. Does there appear to be a positive or negative relationship between price and screen size? Use a scatter plot to examine the relationship. Determine and interpret the correlation coefficient between the two variables. In your interpretation, discuss the direction of the relationship (positive, negative, or zero relationship). Also discuss the strength of the relationship. Estimate the relationship between screen size and price using a simple linear regression model and interpret the estimated coefficients. (In your interpretation, tell the dollar amount by which price will change for each unit of increase in screen size). Include the manufacturer dummy variable (Samsung=1, 0 otherwise) and estimate the relationship between screen size, price and manufacturer dummy as a multiple linear regression model. Interpret the…arrow_forward
- Does there appear to be a positive or negative relationship between price and screen size? Use a scatter plot to examine the relationship. How to take snapshots: if you use a MacBook, press Command+ Shift+4 to take snapshots. If you are using Windows, use the Snipping Tool to take snapshots. Question 1: Determine and interpret the correlation coefficient between the two variables. In your interpretation, discuss the direction of the relationship (positive, negative, or zero relationship). Also discuss the strength of the relationship. Value of correlation coefficient: Direction of the relationship (positive, negative, or zero relationship): Strength of the relationship (strong/moderate/weak): Question 2: Estimate the relationship between screen size and price using a simple linear regression model and interpret the estimated coefficients. In your interpretation, tell the dollar amount by which price will change for each unit of increase in screen size. (The answer for the…arrow_forwardIn this problem, we consider a Brownian motion (W+) t≥0. We consider a stock model (St)t>0 given (under the measure P) by d.St 0.03 St dt + 0.2 St dwt, with So 2. We assume that the interest rate is r = 0.06. The purpose of this problem is to price an option on this stock (which we name cubic put). This option is European-type, with maturity 3 months (i.e. T = 0.25 years), and payoff given by F = (8-5)+ (a) Write the Stochastic Differential Equation satisfied by (St) under the risk-neutral measure Q. (You don't need to prove it, simply give the answer.) (b) Give the price of a regular European put on (St) with maturity 3 months and strike K = 2. (c) Let X = S. Find the Stochastic Differential Equation satisfied by the process (Xt) under the measure Q. (d) Find an explicit expression for X₁ = S3 under measure Q. (e) Using the results above, find the price of the cubic put option mentioned above. (f) Is the price in (e) the same as in question (b)? (Explain why.)arrow_forwardProblem 4. Margrabe formula and the Greeks (20 pts) In the homework, we determined the Margrabe formula for the price of an option allowing you to swap an x-stock for a y-stock at time T. For stocks with initial values xo, yo, common volatility σ and correlation p, the formula was given by Fo=yo (d+)-x0Þ(d_), where In (±² Ꭲ d+ õ√T and σ = σ√√√2(1 - p). дго (a) We want to determine a "Greek" for ỡ on the option: find a formula for θα (b) Is дго θα positive or negative? (c) We consider a situation in which the correlation p between the two stocks increases: what can you say about the price Fo? (d) Assume that yo< xo and p = 1. What is the price of the option?arrow_forward
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