Intro Stats
4th Edition
ISBN: 9780321826275
Author: Richard D. De Veaux
Publisher: PEARSON
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Chapter 7, Problem 8E
To determine
Find whether the given statement “regression to the
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The following table lists several corporate bonds issued during the second quarter of 2015.
Company
AT&T
Bank of America
General Electric
Goldman Sachs
Verizon
Wells Fargo
Time toMaturity(years)
10
10
2
3
8
7
AnnualRate (%)
3.40
4.00
5.25
6.15
5.15
3.50
If you spent $30,000 on Bank of America bonds, how much interest would you earn every 6 months? HINT [See Example 3.]
How much interest would you earn over the life of the bonds?
You invest your life's savings in 5 different hedge fund companies, each of which invests your money in 10
different in-house funds. You realize that this type of investing is risky, but you want the maximum long-term
growth rate. After one year, the results are as listed in the table. Are the hedge fund companies equally good,
or are there statistically significant differences between them?
12 3 4
Company
Average Return (%) 8.4 6.2 6.7 14.7 12.6
Standard Deviation (%) 2.55.3 1.3 2.5 5.8
5
SSE number (rtol=0.01, atol=0.0001)
SSTT
number (rtol=0.01, atol=0.0001)
F
number (rtol=0.01, atol=0.0001)
Pval number (rtol=0.01, atol=0.0001)
State your decision at significant level 0.1.
O (a) Cannot Reject HO
O (b) Reject HO
Cryptocurrencies have rapidly become an important alternative to traditional currencies for many types of transactions. Etherium, one of the most prominent cryptocurrencies, has rapidly appreciated in value. Daily Etherium trading information for the first 332 days of 2021.
It includes the following variables:
Date
Day – Day of the year, used to assess trend over time
Volume (US $) – Daily trading volume
Opening Price (US $) – Opening price for daily trading
Price Change (US $) – Daily change in price from opening to close
1. Determine the sample correlation coefficient, r, between Volume and Price Change. Test the alternative hypothesis that Volume has a linear relationship to Price Change. Specifically, what are the test statistic and the p-value for that test statistic? For α = .05, what do you conclude about the relationship between the variables? (reminder: the T.DIST.2T function requires input of a positive test statistic)
Chapter 7 Solutions
Intro Stats
Ch. 7.4 - A scatterplot of house Price (in dollars) vs....Ch. 7.4 - A scatterplot of house Price (in dollars) vs....Ch. 7.4 - A scatterplot of house Price (in dollars) vs....Ch. 7.4 - A scatterplot of house Price (in dollars) vs....Ch. 7.4 - A scatterplot of house Price (in dollars) vs....Ch. 7.4 - Prob. 6JCCh. 7.6 - Prob. 7JCCh. 7.6 - Prob. 8JCCh. 7.6 - Prob. 9JCCh. 7 - True or false If false, explain briefly. a) We...
Ch. 7 - True or false II If false, explain briefly. a)...Ch. 7 - Prob. 3ECh. 7 - Prob. 4ECh. 7 - Bookstore sales revisited Recall the data we saw...Ch. 7 - Prob. 6ECh. 7 - Prob. 7ECh. 7 - Prob. 8ECh. 7 - Bookstore sales once more Here are the residuals...Ch. 7 - Prob. 10ECh. 7 - Prob. 11ECh. 7 - Prob. 12ECh. 7 - Prob. 13ECh. 7 - 14. Disk drives last time Here is a scatterplot of...Ch. 7 - Prob. 15ECh. 7 - Prob. 16ECh. 7 - More cereal Exercise 15 describes a regression...Ch. 7 - Prob. 18ECh. 7 - Another bowl In Exercise 15, the regression model...Ch. 7 - Prob. 20ECh. 7 - Cereal again The correlation between a cereals...Ch. 7 - Prob. 22ECh. 7 - Prob. 23ECh. 7 - Prob. 24ECh. 7 - Prob. 25ECh. 7 - Prob. 26ECh. 7 - Prob. 27ECh. 7 - Residuals Tell what each of the residual plots...Ch. 7 - Real estate A random sample of records of home...Ch. 7 - 30. Roller coaster The Mitch Hawker poll ranked...Ch. 7 - Prob. 31ECh. 7 - Prob. 32ECh. 7 - Real estate again The regression of Price on Size...Ch. 7 - Prob. 34ECh. 7 - Prob. 35ECh. 7 - More misinterpretations A Sociology student...Ch. 7 - Real estate redux The regression of Price on Size...Ch. 7 - 38. Another ride The regression of Duration of a...Ch. 7 - Prob. 39ECh. 7 - Prob. 40ECh. 7 - Prob. 41ECh. 7 - Prob. 42ECh. 7 - Prob. 43ECh. 7 - Prob. 44ECh. 7 - Prob. 45ECh. 7 - 46. Second inning 2010 Consider again the...Ch. 7 - Prob. 47ECh. 7 - Prob. 48ECh. 7 - Prob. 49ECh. 7 - Prob. 50ECh. 7 - Online clothes An online clothing retailer keeps...Ch. 7 - Online clothes II For the online clothing retailer...Ch. 7 - Prob. 53ECh. 7 - Success in college Colleges use SAT scores in the...Ch. 7 - SAT, take 2 Suppose we wanted to use SAT math...Ch. 7 - Prob. 56ECh. 7 - Prob. 57ECh. 7 - Prob. 58ECh. 7 - Prob. 59ECh. 7 - Drug abuse revisited Chapter 6, Exercise 42...Ch. 7 - Prob. 61ECh. 7 - Prob. 62ECh. 7 - Prob. 63ECh. 7 - 64. Chicken Chicken sandwiches are often...Ch. 7 - Prob. 65ECh. 7 - Prob. 66ECh. 7 - Prob. 67ECh. 7 - Prob. 68ECh. 7 - Prob. 69ECh. 7 - 70. Birthrates 2009 The table shows the number of...Ch. 7 - Prob. 71ECh. 7 - Prob. 72ECh. 7 - Prob. 73ECh. 7 - Prob. 74ECh. 7 - Hard water In an investigation of environmental...Ch. 7 - 76. Gators Wildlife researchers monitor many...Ch. 7 - Prob. 77ECh. 7 - Least squares Consider the four points (200,1950),...
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- Use this data for the exercises that follow: In 2013, there were roughly 317 million citizens in the United States, and about 40 million were elderly (aged 65 and over).[34] 60. It is predicted that by 2030, one in five U.S. citizens will be elderly. How much greater will the chances of meeting an elderly person be at that time? What policy changes do you foresee if these statistics hold true?arrow_forwardThe table below gives data on three movies. Gross earnings is the amount of money the movie brings in. Compare the net earnings (money made after expenses) for the three movies. Which provided the best return on investment? Release Date 10/29/2004 12/19/1997 $200,000,000 | Jurassic Park | 06/11/1993 | $63,000,000 Movie Saw Titanic Budget $1,200,000 Gross Earnings $103,096,345 $1,842,879,955 $923,863,984arrow_forward21:40 ll LTE A brainmass.com Sign in Join Forecast E Add The Mayfair Department Store in Davenport, lowa, is trying to determine the amount of sales lost while it was shut down during July and August because of damage caused by the Mississippi River flood. Sales data for January through June follow. Month Sales ($1000s) January 185.72 February 167.84 March 205.11 April 210.36 May 255.57 June 261.19 a) Use exponential smoothing with Alpha = 0.4, to develop a forecast for July and August. (Hint: Use the forecast for July as the actual sales in July in developing the August forecast.) Comment on the use of exponential smoothing for forecasts more than one period into the future. We use cookies to ensure that we give you the best experience on our website. By continuing to use the site, you consent to the use of cookies. Please review our Privacy Policy OKarrow_forward
- If actual period demand varies from the forecast by more than 3MAD, this indicates: there is 3% chance that the forecast is wrong. there is a 98% chance that the forecast is wrong. there is a 97% chance that the forecast is wrong. there is a 3% chance that the forecast is correct Moving to the next question prevents changes to this answer:arrow_forwardSuppose that you are a researcher and wish to construct a linear mathematical (statistical) model that relates the number of years and the corresponding exports (million U.S,$) of a country. The constructed model may use to forecasts the future values. You have obtained the relevant data for a decade during 1990 to 1999 and you have listed the data in Table 5. Table 5. Shows the list of the amount that have earned on exports 6| 7| 8 Year No. 1| 2 | 3 | 4 10 Exports 4954 6131 | 6904| 6813 6803 8137| 8707 8320 8628 7779 (a) Construct a suitable graph that explains the relationship between the number of years and the corresponding exports. By inspection of the graph comment on the relationships between the number of vears and the corresponding exports. (b) Construct a mathematical (Statistical) model by using least square method between number of years and the corresponding sales. Also interpret the slope of the linear model to support your comment. (c) Forecast the value of sales by…arrow_forwardIn The Boston Globe on September 30, 2015 you could read that Warren Buffet is worth $62 billion, and that. . .if he gave up on aggressive investing and put his money into a simple savings account, with returns at a bare 1 percent, he’d earn more in interest each hour than the average American earns in a year.Use the data in this story to estimate the annual earnings of the average American. Do you think the estimate is reasonable?arrow_forward
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