Introduction To Statistics And Data Analysis
6th Edition
ISBN: 9781337794503
Author: PECK
Publisher: Cengage
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Textbook Question
Chapter 4.2, Problem 22E
The paper referenced in the previous exercise also gave data on the actual amount poured (in ml) into a short, wide glass for individuals who were asked to pour 44.3 ml (1.5 ounces).
- a. Calculate and interpret the values of the
mean and standard deviation. - b. What do the values of the mean amount poured in the short, wide glass and the mean calculated in the previous exercise suggest about the shape of glasses used?
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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 4 Solutions
Introduction To Statistics And Data Analysis
Ch. 4.1 - The following are the prices (in dollars) of the...Ch. 4.1 - The article Caffeine Content of Drinks...Ch. 4.1 - Consumer Reports Health...Ch. 4.1 - Consumer Reports Health...Ch. 4.1 - The article The Wedding Industrys Pricey Little...Ch. 4.1 - The state of California defines family income...Ch. 4.1 - The report State of the News Media 2015 (Pew...Ch. 4.1 - Each student in a sample of 20 seniors at a...Ch. 4.1 - The U.S. Department of Transportation reported the...Ch. 4.1 - The ministry of Health and Long-Term Care in...
Ch. 4.1 - Houses in California are expensive, especially on...Ch. 4.1 - Consider the following statement: More than 65% of...Ch. 4.1 - A sample consisting of four pieces of luggage was...Ch. 4.1 - Suppose that 10 patients with meningitis received...Ch. 4.1 - A study of the lifetime (in hours) for a certain...Ch. 4.1 - An instructor has graded 19 exam papers submitted...Ch. 4.2 - The following data are costs (in cents) per ounce...Ch. 4.2 - Cost per serving (in cents) for six high-fiber...Ch. 4.2 - Combining the cost-per-serving data for high-fiber...Ch. 4.2 - Prob. 20ECh. 4.2 - The accompanying data are consistent with summary...Ch. 4.2 - The paper referenced in the previous exercise also...Ch. 4.2 - The price (in dollars) of the eight smart phones...Ch. 4.2 - In addition to the prices of the highly rated...Ch. 4.2 - In an experiment to assess the effect of listening...Ch. 4.2 - The paper referenced in the previous exercise also...Ch. 4.2 - The accompanying data on number of minutes used...Ch. 4.2 - Give two sets of five numbers that have the same...Ch. 4.2 - Morningstar is an investment research from that...Ch. 4.2 - The U.S. Department of Transportation reported the...Ch. 4.2 - The Ministry of Health and Long-Term Care in...Ch. 4.2 - In 1997, a woman sued a computer keyboard...Ch. 4.2 - The standard deviation alone does not measure...Ch. 4.3 - Based on a large national sample of working...Ch. 4.3 - The report Most Licensed Drivers Age 85+: States...Ch. 4.3 - Data on the gasoline tax per gallon (in cents) in...Ch. 4.3 - The U.S. Department of Health and Human Services...Ch. 4.3 - Fiber content (in grns per serving) for 18 high...Ch. 4.3 - In addition to the fiber contents given in the...Ch. 4.3 - Use the fiber content and sugar content data given...Ch. 4.3 - The article The Bestand WorstPlaces to be a...Ch. 4.4 - The average playing time of music albums in a...Ch. 4.4 - In a study investigating the effect of car speed...Ch. 4.4 - The U.S. Census Bureau (2000 census) reported the...Ch. 4.4 - For the travel time distribution given in the...Ch. 4.4 - Use the information given in the previous two...Ch. 4.4 - Mobile homes are tightly constructed for energy...Ch. 4.4 - The article Impact of Berkeley Excise Tax on...Ch. 4.4 - A student took two national aptitude tests. The...Ch. 4.4 - Suppose that your younger sister is applying for...Ch. 4.4 - The report Who Borrows Most? Bachelors Degree...Ch. 4.4 - The paper Study of the Flying Ability of...Ch. 4.4 - Suppose that the manufacturer of a scale claims...Ch. 4.4 - Suppose that your statistics professor returned...Ch. 4.4 - The paper Answer Changing in Multiple Choice...Ch. 4.4 - Suppose that the average reading speed of students...Ch. 4.4 - The following data values are 2014 per capita...Ch. 4.4 - The accompanying table gives the mean and standard...Ch. 4.5 - The authors of the paper Delayed Time to...Ch. 4.5 - The paper Portable Social Groups: Willingness to...Ch. 4 - Acrylamide (a possible cancer-causing substance)...Ch. 4 - Prob. 62CRCh. 4 - Because some homes have selling prices that are...Ch. 4 - Although bats are not known for their eyesight,...Ch. 4 - For the data in the previous exercise, subtract 10...Ch. 4 - For the data of Exercise 4.64, multiply each data...Ch. 4 - The Bloomberg web site included the data in the...Ch. 4 - Refer to the data given in the previous exercise....Ch. 4 - Age at diagnosis for each of 20 patients under...Ch. 4 - Suppose that the distribution of scores on an exam...
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