Simulation Suppose you are carrying out a randomized experiment to test whether loud music interferes with memorizing numbers. You have 20 college student participants. You want each participant to have a 50 % chance of being assigned to the experimental group (memorizes numbers while music plays) and a 50 % chance of being assigned to the control group (memorizes numbers with no music). Let the digits 0 , 1 , 2 , 3 , and 4 represent assignment to the experimental group (music) and the digits 5 , 6 , 7 , 8 , and 9 represent assignment to the control group. Begin with the first digits in the fifth line of the random number table in the back of the text. a. Write the 20 random numbers. For each number, write M under it if it represents a student randomized to the music group and C if it represents a student randomized to the control group. b. What percentage of the 20 participants were assigned to the music group? c. Would it be appropriate to assign all the even numbers 0 , 2 , 4 , 6 , 8 to the music group and all the odd numbers 1 , 3 , 5 , 7 , 9 to the control group? Why or why not? (In real life, researchers might sample from the random number table without replacement, to make sure that both groups have the same sample size .)
Simulation Suppose you are carrying out a randomized experiment to test whether loud music interferes with memorizing numbers. You have 20 college student participants. You want each participant to have a 50 % chance of being assigned to the experimental group (memorizes numbers while music plays) and a 50 % chance of being assigned to the control group (memorizes numbers with no music). Let the digits 0 , 1 , 2 , 3 , and 4 represent assignment to the experimental group (music) and the digits 5 , 6 , 7 , 8 , and 9 represent assignment to the control group. Begin with the first digits in the fifth line of the random number table in the back of the text. a. Write the 20 random numbers. For each number, write M under it if it represents a student randomized to the music group and C if it represents a student randomized to the control group. b. What percentage of the 20 participants were assigned to the music group? c. Would it be appropriate to assign all the even numbers 0 , 2 , 4 , 6 , 8 to the music group and all the odd numbers 1 , 3 , 5 , 7 , 9 to the control group? Why or why not? (In real life, researchers might sample from the random number table without replacement, to make sure that both groups have the same sample size .)
Solution Summary: The author explains that twenty college students are assigned to two different groups in order to determine the effect of loud music on memorizing numbers.
Simulation Suppose you are carrying out a randomized experiment to test whether loud music interferes with memorizing numbers. You have 20 college student participants. You want each participant to have a
50
%
chance of being assigned to the experimental group (memorizes numbers while music plays) and a
50
%
chance of being assigned to the control group (memorizes numbers with no music). Let the digits
0
,
1
,
2
,
3
,
and 4 represent assignment to the experimental group (music) and the digits
5
,
6
,
7
,
8
,
and 9 represent assignment to the control group. Begin with the first digits in the fifth line of the random number table in the back of the text.
a. Write the 20 random numbers. For each number, write M under it if it represents a student randomized to the music group and C if it represents a student randomized to the control group.
b. What percentage of the 20 participants were assigned to the music group?
c. Would it be appropriate to assign all the even numbers
0
,
2
,
4
,
6
,
8
to the music group and all the odd numbers
1
,
3
,
5
,
7
,
9
to the control group? Why or why not?
(In real life, researchers might sample from the random number table without replacement, to make sure that both groups have the same sample size.)
Definition Definition Number of subjects or observations included in a study. A large sample size typically provides more reliable results and better representation of the population. As sample size and width of confidence interval are inversely related, if the sample size is increased, the width of the confidence interval decreases.
Please solving problem2
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
A Problem Solving Approach To Mathematics For Elementary School Teachers (13th Edition)
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