Essentials Of Statistics For Business & Economics
9th Edition
ISBN: 9780357045435
Author: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
Publisher: South-Western College Pub
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Chapter 5.3, Problem 23E
In Gallup’s Annual Consumption Habits Poll, telephone interviews were conducted for a random sample of 1014 adults aged 18 and over. One of the questions was, “How many cups of coffee, if any, do you drink on an average day?” The following table shows the results obtained (Gallup website, August 6, 2012).
| Number of Cups per Day |
Number of Responses |
| 0 | 365 |
| 1 | 264 |
| 2 | 193 |
| 3 | 91 |
| 4 or more | 101 |
Define a random variable x = number of cups of coffee consumed on an average day. Let x = 4 represent four or more cups.
- a. Develop a
probability distribution for x. - b. Compute the
expected value of x. - c. Compute the variance of x.
- d. Suppose we are only interested in adults who drink at least one cup of coffee on an average day. For this group, let y = the number of cups of coffee consumed on an average day. Compute the expected value of y and compare it to the expected value of x.
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We consider the one-period model studied in class as an example. Namely, we assumethat the current stock price is S0 = 10. At time T, the stock has either moved up toSt = 12 (with probability p = 0.6) or down towards St = 8 (with probability 1−p = 0.4).We consider a call option on this stock with maturity T and strike price K = 10. Theinterest rate on the money market is zero.As in class, we assume that you, as a customer, are willing to buy the call option on100 shares of stock for $120. The investor, who sold you the option, can adopt one of thefollowing strategies: Strategy 1: (seen in class) Buy 50 shares of stock and borrow $380. Strategy 2: Buy 55 shares of stock and borrow $430. Strategy 3: Buy 60 shares of stock and borrow $480. Strategy 4: Buy 40 shares of stock and borrow $280.(a) For each of strategies 2-4, describe the value of the investor’s portfolio at time 0,and at time T for each possible movement of the stock.(b) For each of strategies 2-4, does the investor have…
Negate the following compound statement using De Morgans's laws.
Chapter 5 Solutions
Essentials Of Statistics For Business & Economics
Ch. 5.1 - Consider the experiment of tossing a coin twice....Ch. 5.1 - Consider the experiment of a worker assembling a...Ch. 5.1 - 3. Three students scheduled interviews for summer...Ch. 5.1 - In January the U.S. unemployment rate dropped to...Ch. 5.1 - To perform a certain type of blood analysis, lab...Ch. 5.1 - Listed is a series of experiments and associated...Ch. 5.2 - 7. The probability distribution for the random...Ch. 5.2 - 8. The following data were collected by counting...Ch. 5.2 - For unemployed persons in the United States, the...Ch. 5.2 - The percent frequency distributions of job...
Ch. 5.2 - A technician services mailing machines at...Ch. 5.2 - New Cable Subscribers. Spectrum provides cable...Ch. 5.2 - A psychologist determined that the number of...Ch. 5.2 - 14. The following table is a partial probability...Ch. 5.3 - The following table provides a probability...Ch. 5.3 - The following table provides a probability...Ch. 5.3 - Golf Scores. During the summer of 2018, Coldstream...Ch. 5.3 - 18. The American Housing Survey reported the...Ch. 5.3 - New Tax Accounting Clients. New legislation passed...Ch. 5.3 - The probability distribution for damage claims...Ch. 5.3 - The following probability distributions of job...Ch. 5.3 - 22. The demand for a product of Carolina...Ch. 5.3 - 23. In Gallup’s Annual Consumption Habits Poll,...Ch. 5.3 - 24. The J. R. Ryland Computer Company is...Ch. 5.4 - Given below is a bivariate distribution for the...Ch. 5.4 - A person is interested in constructing a...Ch. 5.4 - The Chamber of Commerce in a Canadian city has...Ch. 5.4 - PortaCom has developed a design for a high-quality...Ch. 5.4 - J.P. Morgan Asset Management publishes information...Ch. 5.4 - In addition to the information in exercise 29 on...Ch. 5.5 - Consider a binomial experiment with two trials and...Ch. 5.5 - 32. Consider a binomial experiment with n = 10 and...Ch. 5.5 - 33. Consider a binomial experiment with n = 20 and...Ch. 5.5 - 34. For its Music 360 survey, Nielsen Co. asked...Ch. 5.5 - The Center for Medicare and Medical Services...Ch. 5.5 - 36. When a new machine is functioning properly,...Ch. 5.5 - Americans Saving for Retirement. According to a...Ch. 5.5 - Military radar and missile detection systems are...Ch. 5.5 - Market-share-analysis company Net Applications...Ch. 5.5 - 42. A Gallup Poll showed that 30% of Americans are...Ch. 5.5 - Tracked Emails. According to a 2017 Wired magazine...Ch. 5.6 - 44. Consider a Poisson distribution with μ =...Ch. 5.6 - 45. Consider a Poisson distribution with a mean of...Ch. 5.6 - 46. Phone calls arrive at the rate of 48 per hour...Ch. 5.6 - 911 Calls. Emergency 911 calls to a small...Ch. 5.6 - Motor Vehicle Accidents in New York City. In a...Ch. 5.6 - Airline passengers arrive randomly and...Ch. 5.6 - According to the National Oceanic and Atmospheric...Ch. 5.6 - Emails Received. According to a 2017 survey...Ch. 5.7 - Suppose N = 10 and r = 3. Compute the...Ch. 5.7 - 53. Suppose N = 15 and r = 4. What is the...Ch. 5.7 - Online Holiday Shopping. More and more shoppers...Ch. 5.7 - Prob. 55ECh. 5.7 - 56. Axline Computers manufactures personal...Ch. 5.7 - The Zagat Restaurant Survey provides food, decor,...Ch. 5.7 - Prob. 58ECh. 5 - 59. The U.S. Coast Guard (USCG) provides a wide...Ch. 5 - 60. The Car Repair Ratings website provides...Ch. 5 - 61. The budgeting process for a midwestern college...Ch. 5 - 62. A bookstore at the Hartsfield-Jackson Airport...Ch. 5 - The Knowles/Armitage (KA) group at Merrill Lynch...Ch. 5 - 64. The Pew Research Center surveyed adults who...Ch. 5 - Investing in the Stock Market. According to a 2017...Ch. 5 - Many companies use a quality control technique...Ch. 5 - 67. PBS News Hour reported that 39.4% of Americans...Ch. 5 - 68. Mahoney Custom Home Builders, Inc. of Canyon...Ch. 5 - Arrivals to a Car Wash. Cars arrive at a car wash...Ch. 5 - 70. A new automated production process averages...Ch. 5 - A regional director responsible for business...Ch. 5 - Customer arrivals at a bank are random and...Ch. 5 - 73. A deck of playing cards contains 52 cards,...Ch. 5 - 74. U.S. News & World Report’s ranking of...Ch. 5 - Great Grasslands Grains, Inc. (GGG) manufactures...Ch. 5 - Harriet McNeil, proprietor of McNeil’s Auto Mall,...Ch. 5 - Several years ago, management at Tuglar...
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