
Statistics for Business and Economics (13th Edition)
13th Edition
ISBN: 9780134506593
Author: James T. McClave, P. George Benson, Terry Sincich
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 6.7, Problem 6.104ACI
Phishing attacks on e-mail accounts. Refer to the Chance (Summer 2007) study of an actual phishing attack against an organization. Exercise 5.33 (p. 292). Recall that phishing describes an attempt to extract personal/financial information from unsuspecting people through fraudulent e-mail. The interarrival times (in seconds) for 267 fraud box e-mail notifications are saved in the accompanying file. As with Exercise 5.33, consider these interarrival times to represent the population of interest.
- a. Obtain a random sample of n = 10 interarrival times from the population.
- b. Use the sample, part b, to obtain an
interval estimate of the population variance of the interarrival times. What is the measure of reliability for your estimate? - c. Find the true population variance for the data. Does the interval, part b, contain the true variance? Give one reason why it may not.
Expert Solution & Answer

Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
1 No.
2
3
4
Binomial Prob.
X
n
P
Answer
5
6 4
7
8
9
10
12345678
8
3
4
2
2552
10
0.7
0.233
0.3
0.132
7
0.6
0.290
20
0.02
0.053
150
1000
0.15
0.035
8
7
10
0.7
0.383
11
9
3
5
0.3
0.132
12
10
4
7
0.6
0.290
13
Poisson Probability
14
X
lambda
Answer
18 4
19
20
21
22
23 9
15
16
17 3
1234567829
3
2
0.180
2
1.5
0.251
12
10
0.095
5
3
0.101
7
4
0.060
3
2
0.180
2
1.5
0.251
24 10
12
10
0.095
step by step on Microssoft on how to put this in excel and the answers please
Find binomial probability if:
x = 8, n = 10, p = 0.7
x= 3, n=5, p = 0.3
x = 4, n=7, p = 0.6
Quality Control: A factory produces light bulbs with a 2% defect rate. If a random sample of 20 bulbs is tested, what is the probability that exactly 2 bulbs are defective? (hint: p=2% or 0.02; x =2, n=20; use the same logic for the following problems)
Marketing Campaign: A marketing company sends out 1,000 promotional emails. The probability of any email being opened is 0.15. What is the probability that exactly 150 emails will be opened? (hint: total emails or n=1000, x =150)
Customer Satisfaction: A survey shows that 70% of customers are satisfied with a new product. Out of 10 randomly selected customers, what is the probability that at least 8 are satisfied? (hint: One of the keyword in this question is “at least 8”, it is not “exactly 8”, the correct formula for this should be = 1- (binom.dist(7, 10, 0.7,…
Kate, Luke, Mary and Nancy are sharing a cake. The cake had previously been divided into four slices (s1, s2, s3 and s4). What is an example of fair division of the cake
S1
S2
S3
S4
Kate
$4.00
$6.00
$6.00
$4.00
Luke
$5.30
$5.00
$5.25
$5.45
Mary
$4.25
$4.50
$3.50
$3.75
Nancy
$6.00
$4.00
$4.00
$6.00
Chapter 6 Solutions
Statistics for Business and Economics (13th Edition)
Ch. 6.2 - Find z/2 for each of the following: a. a . = .10...Ch. 6.2 - What is the confidence level of each of the...Ch. 6.2 - A random sample of n measurements was selected...Ch. 6.2 - A random sample of 90 observations produced a mean...Ch. 6.2 - A random sample of 70 observations from a normally...Ch. 6.2 - Use the applet Confidence Intervals for a Mean...Ch. 6.2 - Use the applet Confidence Intervals for a Mean...Ch. 6.2 - Prob. 6.6LMCh. 6.2 - Explain the difference between an interval...Ch. 6.2 - Prob. 6.8LM
Ch. 6.2 - Will a large-sample confidence interval be valid...Ch. 6.2 - Heart rate variability of police officers. Are...Ch. 6.2 - Tipping points in daily deal transactions? Online...Ch. 6.2 - Corporate sustainability of CPA firms. Corporate...Ch. 6.2 - College dropout study. Refer to the American...Ch. 6.2 - Wear-out of used display panels. Refer to Exercise...Ch. 6.2 - Unethical corporate conduct. How complicit are...Ch. 6.2 - Shopping on Black Friday. The day after...Ch. 6.2 - 401 (k) Participation rates. Named for the section...Ch. 6.2 - Accounting and Machiavellianism. Refer to the...Ch. 6.2 - Facial structure of CEOs. In Psychological Science...Ch. 6.2 - Improving SAT scores. Refer to the Chance (Winter...Ch. 6.2 - The Raid test kitchen. According to scientists,...Ch. 6.3 - Suppose you have selected a random sample of n = 5...Ch. 6.3 - Use the applet Confidence Intervals for a Mean...Ch. 6.3 - Use the applet Confidence Intervals for a Mean...Ch. 6.3 - Explain the differences in the sampling...Ch. 6.3 - Let t0 be a specific value of t. Use Table III in...Ch. 6.3 - The following random sample was selected from a...Ch. 6.3 - The following sample of 16 measurements was...Ch. 6.3 - Lobster trap placement. An observational study of...Ch. 6.3 - Radon exposure in Egyptian tombs. Many ancient...Ch. 6.3 - Do social robots walk or roll? Refer to the...Ch. 6.3 - Hospital length of stay. Health insurers and the...Ch. 6.3 - Repair and replacement costs of water pipes. Refer...Ch. 6.3 - Prob. 6.34ACICh. 6.3 - Oxygen bubbles in molten salt. Molten salt is used...Ch. 6.3 - Performance of stock screeners. In Exercise 2.44...Ch. 6.3 - Minimizing tractor skidding distance. When...Ch. 6.3 - Crude oil biodegradation. Refer to the Journal of...Ch. 6.3 - Largest private companies. IPOsinitial public...Ch. 6.4 - Describe the sampling distribution of p based on...Ch. 6.4 - Use the applet Confidence Intervals for a...Ch. 6.4 - Prob. 6.6AECh. 6.4 - For the binomial sample information summarized in...Ch. 6.4 - A random sample of size n = 121 yielded p=.88. a....Ch. 6.4 - A random sample of size n = 225 yielded p=.46. a....Ch. 6.4 - A random sample of 50 consumers taste-tested a new...Ch. 6.4 - Customer participation in store loyalty card...Ch. 6.4 - Crash risk of using cell phones while driving....Ch. 6.4 - Zillow.com estimates of home values. Zillow.com is...Ch. 6.4 - Do social robots walk or roll? Refer to the...Ch. 6.4 - Is Starbucks coffee overpriced? The Minneapolis...Ch. 6.4 - Nannies who are INA certified. The International...Ch. 6.4 - Prob. 6.51ACICh. 6.4 - Prob. 6.52ACICh. 6.4 - Minority ownership of franchises. According to a...Ch. 6.4 - Study of aircraft bird-strikes. As worldwide air...Ch. 6.4 - Prob. 6.55ACICh. 6.4 - Diamonds sold on the open market. Refer to the...Ch. 6.4 - Are you really being served red snapper? Refer to...Ch. 6.4 - Eye shadow, mascara, and nickel allergies....Ch. 6.4 - Prob. 6.59ACACh. 6.5 - If you wish to estimate a population mean with a...Ch. 6.5 - Suppose you wish to estimate a population mean...Ch. 6.5 - In each case, find the approximate sample size...Ch. 6.5 - The following is a 90% confidence interval for p:...Ch. 6.5 - It costs you 10 to draw a sample of size n = 1 and...Ch. 6.5 - Suppose you wish to estimate the mean of a normal...Ch. 6.5 - If nothing is known about p. .5 can be substituted...Ch. 6.5 - Aluminum cans contaminated by fire. A gigantic...Ch. 6.5 - Accounting and Machiavellianism. Refer to the...Ch. 6.5 - Lobster trap placement. Refer to the Bulletin of...Ch. 6.5 - Evaporation from swimming pools. Refer to the...Ch. 6.5 - Do social robots walk or roll? Refer to the...Ch. 6.5 - Study of aircraft bird-strikes. Refer to the...Ch. 6.5 - Bacteria in bottled water. Is the bottled water...Ch. 6.5 - Shopping on Black Friday. Refer to the...Ch. 6.5 - Monitoring phone calls to a toll-free number. A...Ch. 6.5 - Eye shadow, mascara, and nickel allergies. Refer...Ch. 6.5 - Prob. 6.77ACICh. 6.5 - Is caffeine addictive? Does the caffeine in...Ch. 6.5 - Prob. 6.79ACACh. 6.6 - Calculate the percentage of the population sampled...Ch. 6.6 - Suppose the standard deviation of the population...Ch. 6.6 - Suppose N = 5,000, n = 64, and s = 24. a. Compare...Ch. 6.6 - Suppose N = 10,000, n = 2,000. and s = 50. a....Ch. 6.6 - Prob. 6.84LMCh. 6.6 - Prob. 6.85LMCh. 6.6 - Prob. 6.86LMCh. 6.6 - NFL player survey. Researchers at the University...Ch. 6.6 - Magazine subscriber salaries. Each year, the trade...Ch. 6.6 - Auditing sampling methods. Traditionally. auditors...Ch. 6.6 - Prob. 6.90ACICh. 6.6 - Invoice errors in a billing system In a study of...Ch. 6.6 - Prob. 6.92ACACh. 6.7 - For each of the following combinations of and...Ch. 6.7 - Given the following values of x, s, and n, form a...Ch. 6.7 - Prob. 6.95LMCh. 6.7 - A random sample of n = 6 observations from a...Ch. 6.7 - Oil content of fried sweet potato chips. The...Ch. 6.7 - Corporate sustainability of CPA firms. Refer to...Ch. 6.7 - Facial structure of CEOs. Refer to the...Ch. 6.7 - Radon exposure in Egyptian tombs. Refer to the...Ch. 6.7 - Drug content assessment. Refer to the Analytical...Ch. 6.7 - Jitter in a water power system. Jitter is a term...Ch. 6.7 - Lobster trap placement Refer to the Bulletin of...Ch. 6.7 - Phishing attacks on e-mail accounts. Refer to the...Ch. 6.7 - Is honey a cough remedy? Refer to the Archives of...Ch. 6 - In each of the following instances determine...Ch. 6 - In random Sample of 400 measurements, 227 of the...Ch. 6 - Prob. 6.109LMCh. 6 - Calculate the finite population correction factor...Ch. 6 - Find /22 and (1/2)2 from Table IV, Appendix D, for...Ch. 6 - Latex allergy in health care workers. Health care...Ch. 6 - Prob. 6.113ACBCh. 6 - Products Made in the USA. Refer to Exercise 2.154...Ch. 6 - Prob. 6.115ACBCh. 6 - Lead and copper in drinking water. Periodically,...Ch. 6 - Water pollution testing. The EPA wants to test a...Ch. 6 - Bankruptcy effect on U.S. airfares. Both Delta...Ch. 6 - Prob. 6.119ACBCh. 6 - Motivation of drug dealers. Refer to the Applied...Ch. 6 - Budget lapsing at army hospitals Budget lapsing...Ch. 6 - Size of diamonds sold at retail. Refer to Exercise...Ch. 6 - Prob. 6.123ACICh. 6 - Prob. 6.124ACICh. 6 - Surface roughness of pipe. Refer to the...Ch. 6 - Interviewing candidates for a job. The costs...Ch. 6 - Overbooking policies for major airlines. Airlines...Ch. 6 - Paying for music downloads if you use the...Ch. 6 - Accuracy of price scanners at Walmart. The...Ch. 6 - Contamination of New Jersey wells. Methyl t-butyl...Ch. 6 - Cell phone use by drivers. Studies have shown that...Ch. 6 - Salmonella poisoning from eating an ice cream bar....Ch. 6 - Prob. 6.133ACICh. 6 - Latex allergy in health care workers. Refer to the...Ch. 6 - Prob. 6.135ACACh. 6 - Accountants salary survey. Each year, Management...Ch. 6 - Prob. 6.137ACACh. 6 - A sampling dispute goes to court. Sampling of...Ch. 6 - Prob. 6.139CTC
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
- Faye cuts the sandwich in two fair shares to her. What is the first half s1arrow_forwardQuestion 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?arrow_forwardQuestion 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.)arrow_forward
- 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.)arrow_forwardQuestion 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_forward
- Several 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_forwardWe 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_forward
- In 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_forward2.2, 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_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw HillHolt Mcdougal Larson Pre-algebra: Student Edition...AlgebraISBN:9780547587776Author:HOLT MCDOUGALPublisher:HOLT MCDOUGALBig Ideas Math A Bridge To Success Algebra 1: Stu...AlgebraISBN:9781680331141Author:HOUGHTON MIFFLIN HARCOURTPublisher:Houghton Mifflin Harcourt
- College Algebra (MindTap Course List)AlgebraISBN:9781305652231Author:R. David Gustafson, Jeff HughesPublisher:Cengage Learning

Glencoe Algebra 1, Student Edition, 9780079039897...
Algebra
ISBN:9780079039897
Author:Carter
Publisher:McGraw Hill

Holt Mcdougal Larson Pre-algebra: Student Edition...
Algebra
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL

Big Ideas Math A Bridge To Success Algebra 1: Stu...
Algebra
ISBN:9781680331141
Author:HOUGHTON MIFFLIN HARCOURT
Publisher:Houghton Mifflin Harcourt


College Algebra (MindTap Course List)
Algebra
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:Cengage Learning
Statistics 4.1 Point Estimators; Author: Dr. Jack L. Jackson II;https://www.youtube.com/watch?v=2MrI0J8XCEE;License: Standard YouTube License, CC-BY
Statistics 101: Point Estimators; Author: Brandon Foltz;https://www.youtube.com/watch?v=4v41z3HwLaM;License: Standard YouTube License, CC-BY
Central limit theorem; Author: 365 Data Science;https://www.youtube.com/watch?v=b5xQmk9veZ4;License: Standard YouTube License, CC-BY
Point Estimate Definition & Example; Author: Prof. Essa;https://www.youtube.com/watch?v=OTVwtvQmSn0;License: Standard Youtube License
Point Estimation; Author: Vamsidhar Ambatipudi;https://www.youtube.com/watch?v=flqhlM2bZWc;License: Standard Youtube License