ELEMTARY STATISTICS W/STATLAB(LL)
13th Edition
ISBN: 9781323774731
Author: Triola
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 6, Problem 1CRE
In Exercises 1–3, use the following recent annual salaries (in millions of dollars) for players on the N.Y. Knicks professional basketball team.
1. NY Knicks Salaries
a. Find the
b. Find the
c. Find the standard deviation s.
d. Find the variance.
e. Convert the highest salary to a z score.
f. What level of measurement (nominal, ordinal, interval, ratio) describes this data set?
g. Are the salaries discrete data or continuous data?
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Question 2. An American option on a stock has payoff given by F = f(St) when it is exercised
at time t. We know that the function f is convex. A person claims that because of convexity,
it is optimal to exercise at expiration T. Do you agree with them?
Question 4. We consider a CRR model with So == 5 and up and down factors u = 1.03 and
d = 0.96. We consider the interest rate r = 4% (over one period). Is this a suitable CRR
model? (Explain your answer.)
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.)
Chapter 6 Solutions
ELEMTARY STATISTICS W/STATLAB(LL)
Ch. 6.1 - Normal Distribution Whats wrong with the following...Ch. 6.1 - Normal Distribution A normal distribution is...Ch. 6.1 - Standard Normal Distribution Identify the two...Ch. 6.1 - Notation What does the notation z indicate?Ch. 6.1 - Continuous Uniform Distribution. In Exercises 58,...Ch. 6.1 - Continuous Uniform Distribution. In Exercises 58,...Ch. 6.1 - Continuous Uniform Distribution. In Exercises 58,...Ch. 6.1 - Continuous Uniform Distribution. In Exercises 58,...Ch. 6.1 - Standard Normal Distribution. In Exercises 912,...Ch. 6.1 - Standard Normal Distribution. In Exercises 912,...
Ch. 6.1 - Standard Normal Distribution. In Exercises 912,...Ch. 6.1 - Standard Normal Distribution. In Exercises 912,...Ch. 6.1 - Standard Normal Distribution. In Exercises 1316,...Ch. 6.1 - Standard Normal Distribution. In Exercises 1316,...Ch. 6.1 - Standard Normal Distribution. In Exercises 1316,...Ch. 6.1 - Standard Normal Distribution. In Exercises 1316,...Ch. 6.1 - Standard Normal Distribution. In Exercises 1736,...Ch. 6.1 - Standard Normal Distribution. In Exercises 1736,...Ch. 6.1 - Standard Normal Distribution. In Exercises 1736,...Ch. 6.1 - Standard Normal Distribution. In Exercises 1736,...Ch. 6.1 - Standard Normal Distribution. In Exercises 1736,...Ch. 6.1 - Standard Normal Distribution. In Exercises 1736,...Ch. 6.1 - Standard Normal Distribution. In Exercises 1736,...Ch. 6.1 - Standard Normal Distribution. In Exercises 1736,...Ch. 6.1 - Standard Normal Distribution. In Exercises 1736,...Ch. 6.1 - Standard Normal Distribution. In Exercises 1736,...Ch. 6.1 - Standard Normal Distribution. In Exercises 1736,...Ch. 6.1 - Standard Normal Distribution. In Exercises 1736,...Ch. 6.1 - Standard Normal Distribution. In Exercises 1736,...Ch. 6.1 - Standard Normal Distribution. In Exercises 1736,...Ch. 6.1 - Standard Normal Distribution. In Exercises 1736,...Ch. 6.1 - Standard Normal Distribution. In Exercises 1736,...Ch. 6.1 - Standard Normal Distribution. In Exercises 1736,...Ch. 6.1 - Standard Normal Distribution. In Exercises 1736,...Ch. 6.1 - Standard Normal Distribution. In Exercises 1736,...Ch. 6.1 - Standard Normal Distribution. In Exercises 1736,...Ch. 6.1 - Finding Bone Density Scores. In Exercises 3740...Ch. 6.1 - Finding Bone Density Scores. In Exercises 3740...Ch. 6.1 - Finding Bone Density Scores. In Exercises 3740...Ch. 6.1 - Finding Bone Density Scores. In Exercises 3740...Ch. 6.1 - Critical Values. In Exercises 4144, find the...Ch. 6.1 - Critical Values. In Exercises 4144, find the...Ch. 6.1 - Critical Values. In Exercises 4144, find the...Ch. 6.1 - Critical Values. In Exercises 4144, find the...Ch. 6.1 - Basis for the Range Rule of Thumb and the...Ch. 6.1 - Basis for the Range Rule of Thumb and the...Ch. 6.1 - Basis for the Range Rule of Thumb and the...Ch. 6.1 - Basis for the Range Rule of Thumb and the...Ch. 6.1 - Significance For bone density scores that are...Ch. 6.1 - Distributions In a continuous uniform...Ch. 6.2 - Birth Weights Based on Data Set 4 Births in...Ch. 6.2 - Birth Weights Based on Data Set 4 Births in...Ch. 6.2 - Normal Distributions What is the difference...Ch. 6.2 - Random Digits Computers are commonly used to...Ch. 6.2 - IQ Scores. In Exercises 58, find the area of the...Ch. 6.2 - IQ Scores. In Exercises 58, find the area of the...Ch. 6.2 - IQ Scores. In Exercises 58, find the area of the...Ch. 6.2 - IQ Scores. In Exercises 58, find the area of the...Ch. 6.2 - IQ Scores. In Exercises 912, find the indicated IQ...Ch. 6.2 - IQ Scores. In Exercises 912, find the indicated IQ...Ch. 6.2 - IQ Scores. In Exercises 912, find the indicated IQ...Ch. 6.2 - IQ Scores. In Exercises 912, find the indicated IQ...Ch. 6.2 - Seat Designs. In Exercises 1320, use the data in...Ch. 6.2 - Seat Designs. In Exercises 1320, use the data in...Ch. 6.2 - Seat Designs. In Exercises 1320, use the data in...Ch. 6.2 - Seat Designs. In Exercises 1320, use the data in...Ch. 6.2 - Seat Designs. In Exercises 1320, use the data in...Ch. 6.2 - Seat Designs. In Exercises 1320, use the data in...Ch. 6.2 - Seat Designs. In Exercises 1320, use the data in...Ch. 6.2 - Seat Designs. In Exercises 1320, use the data in...Ch. 6.2 - In Exercises 2124, use these parameters (based on...Ch. 6.2 - In Exercises 2124, use these parameters (based on...Ch. 6.2 - In Exercises 2124, use these parameters (based on...Ch. 6.2 - In Exercises 2124, use these parameters (based on...Ch. 6.2 - Eye Contact In a study of facial behavior, people...Ch. 6.2 - Designing a Work Station A common design...Ch. 6.2 - Jet Ejection Seats The U.S. Air Force once used...Ch. 6.2 - Quarters After 1964, quarters were manufactured so...Ch. 6.2 - Low Birth Weight The University of Maryland...Ch. 6.2 - Body Temperatures Based on the sample results in...Ch. 6.2 - Durations of Pregnancies The lengths of...Ch. 6.2 - Water Taxi Safety When a water taxi sank in...Ch. 6.2 - Large Data Sets. In Exercises 33 and 34, refer to...Ch. 6.2 - Large Data Sets. In Exercises 33 and 34, refer to...Ch. 6.2 - Curving Test Scores A professor gives a test and...Ch. 6.2 - Outliers For the purposes of constructing modified...Ch. 6.3 - Births There are about 11,000 births each day in...Ch. 6.3 - Sampling with Replacement The Orangetown Medical...Ch. 6.3 - Unbiased Estimators Data Set 4 Births in Appendix...Ch. 6.3 - Sampling Distribution Data Set 4 Births in...Ch. 6.3 - Good Sample? A geneticist is investigating the...Ch. 6.3 - College Presidents There are about 4200 college...Ch. 6.3 - In Exercises 710, use the same population of {4,...Ch. 6.3 - In Exercises 710, use the same population of {4,...Ch. 6.3 - In Exercises 710, use the same population of {4,...Ch. 6.3 - In Exercises 710, use the same population of {4,...Ch. 6.3 - In Exercises 1114, use the population of {34, 36,...Ch. 6.3 - In Exercises 1114, use the population of {34, 36,...Ch. 6.3 - In Exercises 1114, use the population of {34, 36,...Ch. 6.3 - In Exercises 1114, use the population of {34, 36,...Ch. 6.3 - Births: Sampling Distribution of Sample Proportion...Ch. 6.3 - Births: Sampling Distribution of Sample Proportion...Ch. 6.3 - SAT and ACT Tests Because they enable efficient...Ch. 6.3 - Hybridization A hybridization experiment begins...Ch. 6.3 - Using a Formula to Describe a Sampling...Ch. 6.3 - Mean Absolute Deviation Is the mean absolute...Ch. 6.4 - Requirements A researcher collects a simple random...Ch. 6.4 - Small Sample Weights of golden retriever dogs are...Ch. 6.4 - Notation In general, what do the symbols x and x...Ch. 6.4 - Annual Incomes Annual incomes are known to have a...Ch. 6.4 - Using the Central Limit Theorem. In Exercises 58,...Ch. 6.4 - Using the Central Limit Theorem. In Exercises 58,...Ch. 6.4 - Using the Central Limit Theorem. In Exercises 58,...Ch. 6.4 - Using the Central Limit Theorem. In Exercises 58,...Ch. 6.4 - Elevator Safety Example 2 referred to an elevator...Ch. 6.4 - Elevator Safety Exercise 9 uses = 189 lb, which...Ch. 6.4 - Mensa Membership in Mensa requires a score in the...Ch. 6.4 - Designing Manholes According to the website...Ch. 6.4 - Water Taxi Safety Passengers died when a water...Ch. 6.4 - Vending Machines Quarters are now manufactured so...Ch. 6.4 - Southwest Airlines Seats Southwest Airlines...Ch. 6.4 - Coke Cans Assume that cans of Coke are filled so...Ch. 6.4 - Redesign of Ejection Seats When women were finally...Ch. 6.4 - Loading a Tour Boat The Ethan Allen tour boat...Ch. 6.4 - Doorway Height The Boeing 757-200 ER airliner...Ch. 6.4 - Loading Aircraft Before every flight, the pilot...Ch. 6.4 - Correcting for a Finite Population In a study of...Ch. 6.5 - Normal Quantile Plot Data Set 1 Body Data in...Ch. 6.5 - Normal Quantile Plot After constructing a...Ch. 6.5 - Small Sample Data set 29 Coin Weights in Appendix...Ch. 6.5 - Assessing Normality The accompanying histogram is...Ch. 6.5 - Prob. 5BSCCh. 6.5 - Prob. 6BSCCh. 6.5 - Prob. 7BSCCh. 6.5 - Interpreting Normal Quantile Plots. In Exercises...Ch. 6.5 - Prob. 9BSCCh. 6.5 - Determining Normality. In Exercises 912, refer to...Ch. 6.5 - Determining Normality. In Exercises 912, refer to...Ch. 6.5 - Prob. 12BSCCh. 6.5 - Using Technology to Generate Normal Quantile...Ch. 6.5 - Using Technology to Generate Normal Quantile...Ch. 6.5 - Prob. 15BSCCh. 6.5 - Prob. 16BSCCh. 6.5 - Constructing Normal Quantile Plots. In Exercises...Ch. 6.5 - Prob. 18BSCCh. 6.5 - Constructing Normal Quantile Plots. In Exercises...Ch. 6.5 - Constructing Normal Quantile Plots. In Exercises...Ch. 6.5 - Transformations The heights (in inches) of men...Ch. 6.5 - Lognormal Distribution The following are the...Ch. 6.6 - Continuity Correction In testing the assumption...Ch. 6.6 - Checking Requirements Common tests such as the...Ch. 6.6 - Notation Common tests such as the SAT, ACT, LSAT,...Ch. 6.6 - Distribution of Proportions Each week, Nielsen...Ch. 6.6 - Using Normal Approximation. In Exercises 58, do...Ch. 6.6 - Using Normal Approximation. In Exercises 58, do...Ch. 6.6 - Using Normal Approximation. In Exercises 58, do...Ch. 6.6 - Using Normal Approximation. In Exercises 58, do...Ch. 6.6 - Car Colors. In Exercises 912, assume that 100 cars...Ch. 6.6 - Car Colors. In Exercises 912, assume that 100 cars...Ch. 6.6 - Car Colors. In Exercises 912, assume that 100 cars...Ch. 6.6 - Car Colors. In Exercises 912, assume that 100 cars...Ch. 6.6 - Tennis Replay In the year that this exercise was...Ch. 6.6 - Tennis Replay Repeat the preceding exercise after...Ch. 6.6 - Smartphones Based on an LG smartphone survey,...Ch. 6.6 - Eye Color Based on a study by Dr. P. Sorita at...Ch. 6.6 - Mendelian Genetics When Mendel conducted his...Ch. 6.6 - Sleepwalking Assume that 29.2% of people have...Ch. 6.6 - Voters Lying? In a survey of 1002 people, 701 said...Ch. 6.6 - Cell Phones and Brain Cancer In a study of 420,095...Ch. 6.6 - Births The probability of a baby being born a boy...Ch. 6.6 - Overbooking a Boeing 767-300 A Boeing 767-300...Ch. 6 - Bone Density Test. In Exercises 14, assume that...Ch. 6 - Bone Density Test. In Exercises 14, assume that...Ch. 6 - Bone Density Test. In Exercises 14, assume that...Ch. 6 - Bone Density Test. In Exercises 14, assume that...Ch. 6 - Notation a. Identify the values of and for the...Ch. 6 - In Exercises 610, assume that women have diastolic...Ch. 6 - In Exercises 610, assume that women have diastolic...Ch. 6 - In Exercises 610, assume that women have diastolic...Ch. 6 - In Exercises 610, assume that women have diastolic...Ch. 6 - In Exercises 610, assume that women have diastolic...Ch. 6 - Bone Density Test A bone mineral density test is...Ch. 6 - Biometric Security In designing a security system...Ch. 6 - Biometric Security Standing eye heights of men are...Ch. 6 - Sampling Distributions Scores on the Gilliam...Ch. 6 - Unbiased Estimators a. What is an unbiased...Ch. 6 - Disney Monorail The Mark VI monorail used at...Ch. 6 - Disney Monorail Consider the same Mark VI monorail...Ch. 6 - Assessing Normality Listed below are the recent...Ch. 6 - Hybridization Experiment In one of Mendels...Ch. 6 - Tall Clubs The social organization Tall Clubs...Ch. 6 - In Exercises 13, use the following recent annual...Ch. 6 - In Exercises 13, use the following recent annual...Ch. 6 - In Exercises 13, use the following recent annual...Ch. 6 - Blue Eyes Assume that 35% of us have blue eyes...Ch. 6 - Foot Lengths of Women Assume that foot lengths of...Ch. 6 - Assessing Normality It is often necessary to...Ch. 6 - Binomial Probabilities Section 6-6 described a...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.Similar questions
- 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.)arrow_forwardQuestion 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.arrow_forwardSeveral markets (Japan, Switzerland) introduced negative interest rates on their money market. In this problem, we will consider an annual interest rate r < 0. We consider a stock modeled by an N-period CRR model where each period is 1 year (At = 1) and the up and down factors are u and d. (a) We consider an American put option with strike price K and expiration T. Prove that if <0, the optimal strategy is to wait until expiration T to exercise.arrow_forward
- We consider an N-period CRR model where each period is 1 year (At = 1), the up factor is u = 0.1, the down factor is d = e−0.3 and r = 0. We remind you that in the CRR model, the stock price at time tn is modeled (under P) by Sta = So exp (μtn + σ√AtZn), where (Zn) is a simple symmetric random walk. (a) Find the parameters μ and σ for the CRR model described above. (b) Find P Ste So 55/50 € > 1). StN (c) Find lim P 804-N (d) Determine q. (You can use e- 1 x.) Ste (e) Find Q So (f) Find lim Q 004-N StN Soarrow_forwardIn this problem, we consider a 3-period stock market model with evolution given in Fig. 1 below. Each period corresponds to one year. The interest rate is r = 0%. 16 22 28 12 16 12 8 4 2 time Figure 1: Stock evolution for Problem 1. (a) A colleague notices that in the model above, a movement up-down leads to the same value as a movement down-up. He concludes that the model is a CRR model. Is your colleague correct? (Explain your answer.) (b) We consider a European put with strike price K = 10 and expiration T = 3 years. Find the price of this option at time 0. Provide the replicating portfolio for the first period. (c) In addition to the call above, we also consider a European call with strike price K = 10 and expiration T = 3 years. Which one has the highest price? (It is not necessary to provide the price of the call.) (d) We now assume a yearly interest rate r = 25%. We consider a Bermudan put option with strike price K = 10. It works like a standard put, but you can exercise it…arrow_forwardIn this problem, we consider a 2-period stock market model with evolution given in Fig. 1 below. Each period corresponds to one year (At = 1). The yearly interest rate is r = 1/3 = 33%. This model is a CRR model. 25 15 9 10 6 4 time Figure 1: Stock evolution for Problem 1. (a) Find the values of up and down factors u and d, and the risk-neutral probability q. (b) We consider a European put with strike price K the price of this option at time 0. == 16 and expiration T = 2 years. Find (c) Provide the number of shares of stock that the replicating portfolio contains at each pos- sible position. (d) You find this option available on the market for $2. What do you do? (Short answer.) (e) We consider an American put with strike price K = 16 and expiration T = 2 years. Find the price of this option at time 0 and describe the optimal exercising strategy. (f) We consider an American call with strike price K ○ = 16 and expiration T = 2 years. Find the price of this option at time 0 and describe…arrow_forward
- 2.2, 13.2-13.3) question: 5 point(s) possible ubmit test The accompanying table contains the data for the amounts (in oz) in cans of a certain soda. The cans are labeled to indicate that the contents are 20 oz of soda. Use the sign test and 0.05 significance level to test the claim that cans of this soda are filled so that the median amount is 20 oz. If the median is not 20 oz, are consumers being cheated? Click the icon to view the data. What are the null and alternative hypotheses? OA. Ho: Medi More Info H₁: Medi OC. Ho: Medi H₁: Medi Volume (in ounces) 20.3 20.1 20.4 Find the test stat 20.1 20.5 20.1 20.1 19.9 20.1 Test statistic = 20.2 20.3 20.3 20.1 20.4 20.5 Find the P-value 19.7 20.2 20.4 20.1 20.2 20.2 P-value= (R 19.9 20.1 20.5 20.4 20.1 20.4 Determine the p 20.1 20.3 20.4 20.2 20.3 20.4 Since the P-valu 19.9 20.2 19.9 Print Done 20 oz 20 oz 20 oz 20 oz ce that the consumers are being cheated.arrow_forwardT Teenage obesity (O), and weekly fast-food meals (F), among some selected Mississippi teenagers are: Name Obesity (lbs) # of Fast-foods per week Josh 185 10 Karl 172 8 Terry 168 9 Kamie Andy 204 154 12 6 (a) Compute the variance of Obesity, s²o, and the variance of fast-food meals, s², of this data. [Must show full work]. (b) Compute the Correlation Coefficient between O and F. [Must show full work]. (c) Find the Coefficient of Determination between O and F. [Must show full work]. (d) Obtain the Regression equation of this data. [Must show full work]. (e) Interpret your answers in (b), (c), and (d). (Full explanations required). Edit View Insert Format Tools Tablearrow_forwardThe average miles per gallon for a sample of 40 cars of model SX last year was 32.1, with a population standard deviation of 3.8. A sample of 40 cars from this year’s model SX has an average of 35.2 mpg, with a population standard deviation of 5.4. Find a 99 percent confidence interval for the difference in average mpg for this car brand (this year’s model minus last year’s).Find a 99 percent confidence interval for the difference in average mpg for last year’s model minus this year’s. What does the negative difference mean?arrow_forward
- A special interest group reports a tiny margin of error (plus or minus 0.04 percent) for its online survey based on 50,000 responses. Is the margin of error legitimate? (Assume that the group’s math is correct.)arrow_forwardSuppose that 73 percent of a sample of 1,000 U.S. college students drive a used car as opposed to a new car or no car at all. Find an 80 percent confidence interval for the percentage of all U.S. college students who drive a used car.What sample size would cut this margin of error in half?arrow_forwardYou want to compare the average number of tines on the antlers of male deer in two nearby metro parks. A sample of 30 deer from the first park shows an average of 5 tines with a population standard deviation of 3. A sample of 35 deer from the second park shows an average of 6 tines with a population standard deviation of 3.2. Find a 95 percent confidence interval for the difference in average number of tines for all male deer in the two metro parks (second park minus first park).Do the parks’ deer populations differ in average size of deer antlers?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw Hill
Big Ideas Math A Bridge To Success Algebra 1: Stu...AlgebraISBN:9781680331141Author:HOUGHTON MIFFLIN HARCOURTPublisher:Houghton Mifflin Harcourt
Holt Mcdougal Larson Pre-algebra: Student Edition...AlgebraISBN:9780547587776Author:HOLT MCDOUGALPublisher:HOLT MCDOUGAL
Glencoe Algebra 1, Student Edition, 9780079039897...
Algebra
ISBN:9780079039897
Author:Carter
Publisher:McGraw Hill
Big Ideas Math A Bridge To Success Algebra 1: Stu...
Algebra
ISBN:9781680331141
Author:HOUGHTON MIFFLIN HARCOURT
Publisher:Houghton Mifflin Harcourt
Holt Mcdougal Larson Pre-algebra: Student Edition...
Algebra
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
The Shape of Data: Distributions: Crash Course Statistics #7; Author: CrashCourse;https://www.youtube.com/watch?v=bPFNxD3Yg6U;License: Standard YouTube License, CC-BY
Shape, Center, and Spread - Module 20.2 (Part 1); Author: Mrmathblog;https://www.youtube.com/watch?v=COaid7O_Gag;License: Standard YouTube License, CC-BY
Shape, Center and Spread; Author: Emily Murdock;https://www.youtube.com/watch?v=_YyW0DSCzpM;License: Standard Youtube License