Explanation Given: The relationship between a variety of variables that look at relationships among health, climate, disasters, economy, education, family, global trends, HIV, and poverty from the website gapminder.org. Consider, the graph appears linear when the y -axis is on the logarithmic scale and the x -axis is on the linear scale which is: ln y = a x + b Collect the data from gapminder.org of indication HIV estimated prevalence ages between 15 and 49. Consider the country which is Argentina and also consider the year from 1979 to 1991 to show the variation of HIV estimated prevalence ages between 15 and 49 in percentage. The data of the HIV estimated prevalence ages between 15 and 49 in percentage of the country Argentina when the y -axis is on the logarithmic scale and the x -axis is on the linear scale is listed in the tabular form which is obtained from gapminder.org. Country→? Argentina Year ln y x 1979 .0020 27.7 million 1980 .00262 28.1 million 1981 .002003 28.5 million 1982 .0426 29 million 1983 .0544 29.5 million. 1984 .069 29.9 million 1985 .0886 30.4 million 1986 .113 30.9 million 1987 .144 31.3 million 1988 .184 31.8 million 1989 .235 32.3 million 1990 .3 32.7 million 1991 .3 33.2 million Then obtain a relationship which is: ln y = a x + b Where x shows the population and ln y shows the percentage of HIV estimated prevalence. Substitute the year of two values of x and ln y to get the relationship between them Substitute x = 27.7 and ln y = .0020 ln y = a x + b .0020 = a ( 27.7 ) + b .0020 = 27.7 a + b Substitute x = 28.1 and ln y = .0026 ln y = a x + b .0026 = a ( 28.1 ) + b .0026 = 28.1 a + b Solve a and b by substitution method, then consider the two equation which is obtained from the data. .0020 = 27

Mathematics With Applications, Loose-leaf Edition Plus Mylab Math With Pearson Etext -- 18-week Access Card Package (12th Edition)

12th Edition

ISBN: 9780135998304

Author: Margaret L. Lial, Tom Hungerford, John P. Holcomb, Bernadette Mullins

Publisher: PEARSON

See similar textbooks

Videos

Question

Chapter 4, Problem 2EP

To determine

A relationship which appears linear when the y-axis is on the logarithmic scale and the x-axis is on the linear scale and also tell about its shape.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Chapter 4, Problem 1EP

Chapter 4, Problem 3EP

Students have asked these similar questions

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.)

Question 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.)

Question 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.

Chapter 4 Solutions

Mathematics With Applications, Loose-leaf Edition Plus Mylab Math With Pearson Etext -- 18-week Access Card Package (12th Edition)

Ch. 4.1 - Checkpoint 1 (a) Fill in this table: x g(x) =...Ch. 4.1 - Prob. 2CP Ch. 4.1 - Checkpoint 3 Use a graphing calculator to graph ...Ch. 4.1 - Prob. 4CP Ch. 4.1 - Checkpoint 5 Graph Ch. 4.1 - Prob. 6CP Ch. 4.1 - Checkpoint 7 Per-person wine consumption (in...Ch. 4.1 - Classify each function as linear, quadratic, or...Ch. 4.1 - Prob. 2E Ch. 4.1 - Prob. 3E

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, subject and related others by exploring similar questions and additional content below.

A relationship which appears linear when the y -axis is on the logarithmic scale and the x -axis is on the linear scale and also tell about its shape.

Videos

A relationship which appears linear when the y-axis is on the logarithmic scale and the x-axis is on the linear scale and also tell about its shape.

Want to see the full answer?

Chapter 4 Solutions