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Mathematical Applications for the Management, Life, and Social Sciences
11th Edition
ISBN: 9781305108042
Author: Ronald J. Harshbarger, James J. Reynolds
Publisher: Cengage Learning
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Question
Chapter 7.3, Problem 48E
To determine
To calculate: The probability that any randomly selected article produced is defective where the machine produces 30% of the total product, produces 10% defective articles.
Expert Solution & Answer
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Students have asked these similar questions
3. Suppose you have 12 professors in a department and you have to chose members of departmental
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(a) How many ways can you pick members for one 4 people committee?
(b) How many ways can you pick members for two different 4 people committees if no-one can serve
on both committees?
(c) How many ways can you pick members for two different 4 people committees if people can serve
on both committees?
(d) How about if you need members for a 4 person, a 5 person, and a 3 person committee, people
cannot serve on more than one committee?
(e) How about if you need members for a 4 person, a 5 person, and a 3 person committee, people can
serve on more than one committee?
(f) How about if you need members for a 4 person, a 5 person, and a 3 person committee, people
cannot serve on more than one committee, and the first person chosen for each committee serves
as chair?
Peggy conducted a study to identify the randomness of rainy days in fall. For 15 days, she recorded whether it rained that day or not. They denoted a rainy day with the letter R, a day without rain with the letter N.
R N N R R N N R R N N R R R R
Test the sequence for randomness. Use .
Consider the grades for the math and history exams for 10 students on a scale from 0 to 12 in the following table.
Student
Math
History
1
4
8
2
5
9
3
7
9
4
12
10
5
10
8
6
8
5
7
9
6
8
9
6
9
11
9
10
7
10
Compute the Spearman correlation coefficient. Round your answer to three decimal places.
Chapter 7 Solutions
Mathematical Applications for the Management, Life, and Social Sciences
Ch. 7.1 - CHECKPOINT
1. If a coin is drawn from a box...Ch. 7.1 - CHECKPOINT
2. A ball will be drawn from a bag...Ch. 7.1 - CHECKPOINT
3. A coin is tossed, and a die is...Ch. 7.1 - 1. One ball is drawn at random from a bag...Ch. 7.1 - 2. One ball is drawn at random from a bag...Ch. 7.1 - 3. If you draw one card at random from a deck of...Ch. 7.1 - Prob. 4ECh. 7.1 - Prob. 5ECh. 7.1 - 6. A die is rolled. What is the probability...Ch. 7.1 - 7. An urn contains three red balls numbered 1, 2,...
Ch. 7.1 - 8. An urn contains three red balls numbered 1, 2,...Ch. 7.1 - 9. From a deck of 52 ordinary playing cards, one...Ch. 7.1 - 10. From a deck of 52 ordinary playing cards, one...Ch. 7.1 - 11. Suppose a fair coin is tossed two times....Ch. 7.1 - Prob. 12ECh. 7.1 - 13. Use Table 7.1 to determine the following...Ch. 7.1 - 14. (a) When a pair of distinguishable dice is...Ch. 7.1 - Prob. 15ECh. 7.1 - Prob. 16ECh. 7.1 - 17. Suppose a die is tossed 1200 times and a 6...Ch. 7.1 - 18. Suppose that a coin is tossed 3000 times and...Ch. 7.1 - Prob. 19ECh. 7.1 - Prob. 20ECh. 7.1 - 21. If the odds that a particular horse will win a...Ch. 7.1 - 22. If the odds that an event E will not occur are...Ch. 7.1 - Prob. 23ECh. 7.1 - Prob. 24ECh. 7.1 - 25. Car maintenance A car rental firm has 425...Ch. 7.1 - Prob. 26ECh. 7.1 - 27. Voting The table gives the average number of...Ch. 7.1 - Prob. 28ECh. 7.1 - 29. Sales promotion In a sales promotion, a...Ch. 7.1 - 30. Management A dry cleaning firm has 12...Ch. 7.1 - Prob. 31ECh. 7.1 - Prob. 32ECh. 7.1 - 33. Blood types Human blood is classified by blood...Ch. 7.1 - Prob. 34ECh. 7.1 - Prob. 35ECh. 7.1 - Prob. 36ECh. 7.1 - Prob. 37ECh. 7.1 - Prob. 38ECh. 7.1 - 39. Fraud A company selling substandard drugs to...Ch. 7.1 - Prob. 40ECh. 7.1 - Prob. 41ECh. 7.1 - Prob. 42ECh. 7.1 - Prob. 43ECh. 7.1 - 44. Quality control A supply of 500 plasma...Ch. 7.1 - Prob. 45ECh. 7.1 - Prob. 46ECh. 7.1 - Prob. 47ECh. 7.1 - 48. Quality control A computer store offers used...Ch. 7.1 - 49. Genetics A newly married couple plan to have...Ch. 7.1 - 50. Management A frustrated store manager is asked...Ch. 7.1 - Prob. 51ECh. 7.1 - Prob. 52ECh. 7.1 - Prob. 53ECh. 7.1 - Prob. 54ECh. 7.1 - Prob. 55ECh. 7.1 - Prob. 56ECh. 7.1 - Prob. 57ECh. 7.1 - Prob. 58ECh. 7.1 - Prob. 59ECh. 7.1 - Prob. 60ECh. 7.1 - Prob. 61ECh. 7.1 - Prob. 62ECh. 7.1 - Prob. 63ECh. 7.1 - 64. Ice cream The odds of an American home having...Ch. 7.1 - Prob. 65ECh. 7.1 - 66. Rain If the probability of rain today is ,...Ch. 7.1 - Prob. 67ECh. 7.1 - Prob. 68ECh. 7.2 - CHECKPOINT
1. If a ball is drawn from a bag...Ch. 7.2 - Prob. 2CPCh. 7.2 - Prob. 1ECh. 7.2 - Prob. 2ECh. 7.2 - 5. An ordinary die is tossed. What is the...Ch. 7.2 - 6. A card is drawn at random from a deck of 52...Ch. 7.2 - 7. If the probability that event E will occur is...Ch. 7.2 - Prob. 6ECh. 7.2 - In Problems 7-8, a bag contains 5 red balls...Ch. 7.2 - Prob. 8ECh. 7.2 - Prob. 9ECh. 7.2 - 13. Suppose a die is biased (unfair) so that each...Ch. 7.2 - Prob. 11ECh. 7.2 - Prob. 12ECh. 7.2 - 15. A bag contains 4 white, 7 black, and 6 green...Ch. 7.2 - 16. In a game where only one player can win, the...Ch. 7.2 - 17. A cube has 2 faces painted red, 2 painted...Ch. 7.2 - Prob. 16ECh. 7.2 - 19. A ball is drawn from a bag containing 13 red...Ch. 7.2 - 20. A ball is drawn from a bag containing 13 red...Ch. 7.2 - 21. Drug use Forty-six percent of marijuana use...Ch. 7.2 - 22. Breast cancer According to the American Cancer...Ch. 7.2 - 23. Car maintenance A car rental firm has 425...Ch. 7.2 - 25. Linguistics Of 100 students, 24 can speak...Ch. 7.2 - 25. Linguistics Of 100 students, 24 can speak...Ch. 7.2 - 26. Management A company employs 65 people. Eight...Ch. 7.2 - Prob. 25ECh. 7.2 - Photography Rob Lee knows his camera will take a...Ch. 7.2 - 29. Salaries The table gives the percent of...Ch. 7.2 - Prob. 28ECh. 7.2 - 31. Workers The table gives the projected number...Ch. 7.2 - Prob. 30ECh. 7.2 - Prob. 31ECh. 7.2 - Prob. 32ECh. 7.2 - Prob. 33ECh. 7.2 - Prob. 34ECh. 7.2 - 37. Education A mathematics class consists of
16...Ch. 7.2 - 38. Parts delivery Repairing a copy machine...Ch. 7.2 - Oil drilling The table summarizes the opinions of...Ch. 7.2 - Prob. 38ECh. 7.2 - Prob. 39ECh. 7.2 - Prob. 40ECh. 7.2 - Prob. 41ECh. 7.2 - 44. Job bids Three construction companies have bid...Ch. 7.2 - Prob. 43ECh. 7.2 - Prob. 44ECh. 7.2 - Prob. 45ECh. 7.2 - Prob. 46ECh. 7.3 - CHECKPOINT
1. Suppose that one ball is drawn from...Ch. 7.3 - Prob. 2CPCh. 7.3 - 1. A card is drawn from a deck of 52 playing...Ch. 7.3 - Prob. 2ECh. 7.3 - 3. A die has been “loaded so that the probability...Ch. 7.3 - 4. A die has been “loaded” so that the probability...Ch. 7.3 - 5. A bag contains 9 red balls numbered 1, 2, 3, 4,...Ch. 7.3 - Prob. 6ECh. 7.3 - 7. A bag contains 4 red balls and 6 white balls....Ch. 7.3 - 8. A fair die is rolled. Find the probability that...Ch. 7.3 - 9. A fair coin is tossed 3 times. Find the...Ch. 7.3 - 10. A fair coin is tossed 14 times. What is the...Ch. 7.3 - 11. A die is thrown twice. What is the probability...Ch. 7.3 - Prob. 12ECh. 7.3 - Prob. 13ECh. 7.3 - Prob. 14ECh. 7.3 - 15. (a) A box contains 3 red balls, 2 white balls,...Ch. 7.3 - Prob. 16ECh. 7.3 - 17. Two balls are drawn from a bag containing 3...Ch. 7.3 - Prob. 18ECh. 7.3 - 19. A bag contains 9 nickels, 4 dimes, and 5...Ch. 7.3 - Prob. 20ECh. 7.3 - 21. A red ball and 4 white balls are in a box. If...Ch. 7.3 - 22. From a deck of 52 playing cards, two cards are...Ch. 7.3 - 23. One card is drawn at random from a deck of 52...Ch. 7.3 - Prob. 24ECh. 7.3 - 25. Two balls are drawn without replacement from a...Ch. 7.3 - Prob. 26ECh. 7.3 - Prob. 27ECh. 7.3 - Prob. 28ECh. 7.3 - Carbon emissions The table gives the results of a...Ch. 7.3 - Prob. 30ECh. 7.3 - Oil drilling Suppose the table summarizes the...Ch. 7.3 - Oil drilling Suppose the table summarizes the...Ch. 7.3 - Oil drilling Suppose the table summarizes the...Ch. 7.3 - Oil drilling Suppose the table summarizes the...Ch. 7.3 - Oil drilling Suppose the table summarizes the...Ch. 7.3 - Oil drilling Suppose the table summarizes the...Ch. 7.3 - Oil drilling Suppose the table summarizes the...Ch. 7.3 - Oil drilling Suppose the table summarizes the...Ch. 7.3 - Prob. 39ECh. 7.3 - Prob. 40ECh. 7.3 - Prob. 41ECh. 7.3 - Prob. 42ECh. 7.3 - 43. Quality control Each computer component that...Ch. 7.3 - Prob. 44ECh. 7.3 - 45. Lactose intolerance Lactose intolerance...Ch. 7.3 - 46. Quality control If 3% of all light bulbs a...Ch. 7.3 - 47. Quality control To test its shotgun shells, a...Ch. 7.3 - Prob. 48ECh. 7.3 - Prob. 49ECh. 7.3 - Prob. 50ECh. 7.3 - Prob. 51ECh. 7.3 - Prob. 52ECh. 7.3 - 53. Maintenance Twenty-three percent of the cars...Ch. 7.3 - Prob. 54ECh. 7.3 - 55. Testing An unprepared student must take a...Ch. 7.3 - Prob. 56ECh. 7.3 - Prob. 57ECh. 7.3 - 58. Racing Suppose that the odds that Blackjack...Ch. 7.3 - Prob. 59ECh. 7.3 - Prob. 60ECh. 7.3 - Prob. 61ECh. 7.3 - 62. Crime In an actual case.’ probability was used...Ch. 7.4 - CHECKPOINT
1. Urn I contains 3 gold coins, urn II...Ch. 7.4 - Prob. 2CPCh. 7.4 - Prob. 1ECh. 7.4 - Prob. 2ECh. 7.4 - In Problems 1-12, use probability trees to find...Ch. 7.4 - Prob. 4ECh. 7.4 - In Problems 1-12, use probability trees to find...Ch. 7.4 - Prob. 6ECh. 7.4 - In Problems 1-12, use probability trees to find...Ch. 7.4 - Prob. 8ECh. 7.4 - Prob. 9ECh. 7.4 - Prob. 10ECh. 7.4 - In Problems 1-12, use probability trees to find...Ch. 7.4 - Prob. 12ECh. 7.4 - In Problems 13-16, use (a) a probability tree and...Ch. 7.4 - Prob. 14ECh. 7.4 - In Problems 13-16, use (a) a probability tree and...Ch. 7.4 - In Problems 13-16, use (a) a probability tree and...Ch. 7.4 - 17. Lactose intolerance Lactose intolerance...Ch. 7.4 - 18. Genetics What is the probability that a couple...Ch. 7.4 - 19. Marksmanship Suppose that a marksman hits the...Ch. 7.4 - 20. Majors In a random survey of students...Ch. 7.4 - Quality control Suppose a box contains 3 defective...Ch. 7.4 - Prob. 22ECh. 7.4 - 23. Alcoholism A small town has 8000 adult males...Ch. 7.4 - Prob. 24ECh. 7.4 - 27. Pregnancy test A self-administered pregnancy...Ch. 7.4 - 29. Survey In a Student Activity Participation...Ch. 7.4 - Prob. 30ECh. 7.5 - CHECKPOINT
1. If a state permits either a letter...Ch. 7.5 - Prob. 2CPCh. 7.5 - Prob. 3CPCh. 7.5 - Prob. 4CPCh. 7.5 - Prob. 5CPCh. 7.5 - 1. Compute .
Ch. 7.5 - Prob. 2ECh. 7.5 - 3. Compute .
Ch. 7.5 - 4. Compute .
Ch. 7.5 - 5. Compute .
Ch. 7.5 - Prob. 6ECh. 7.5 - 7. How many four-digit numbers can be formed from...Ch. 7.5 - Prob. 8ECh. 7.5 - 9. Compute .
Ch. 7.5 - Prob. 10ECh. 7.5 - Prob. 11ECh. 7.5 - Prob. 12ECh. 7.5 - Prob. 13ECh. 7.5 - Prob. 14ECh. 7.5 - 15. Compute .
Ch. 7.5 - 16. Compute .
Ch. 7.5 - 17. Compute .
Ch. 7.5 - Prob. 18ECh. 7.5 - 19. Compute .
Ch. 7.5 - Prob. 20ECh. 7.5 - Prob. 21ECh. 7.5 - Prob. 22ECh. 7.5 - 23. Binz, not Benz Mercedes Benz E-Class sedans...Ch. 7.5 - 24. Ice cream cones Baskin-Robbins’logo includes...Ch. 7.5 - Prob. 25ECh. 7.5 - License plates If a state wants each of its...Ch. 7.5 - 28. Racing Eight horses are entered in a race. In...Ch. 7.5 - Prob. 29ECh. 7.5 - 30. Testing An examination consists of 12...Ch. 7.5 - Prob. 31ECh. 7.5 - Prob. 32ECh. 7.5 - 33. Management A department store manager wants to...Ch. 7.5 - 34. Call letters The call letters for radio...Ch. 7.5 - Prob. 35ECh. 7.5 - 36. Testing How many ways can a 10-question...Ch. 7.5 - Prob. 37ECh. 7.5 - Prob. 38ECh. 7.5 - Prob. 39ECh. 7.5 - 40. Astronauts If 8 people are qualified for the...Ch. 7.5 - 41. Sales A traveling salesperson has 30 products...Ch. 7.5 - Prob. 42ECh. 7.5 - Prob. 43ECh. 7.5 - Prob. 44ECh. 7.5 - Prob. 45ECh. 7.5 - Prob. 46ECh. 7.5 - 47. Committees In how many ways can a committee...Ch. 7.5 - Prob. 48ECh. 7.6 - CHECKPOINT
1. If three wires (red, black, and...Ch. 7.6 - Prob. 2CPCh. 7.6 - 1. Education If a child is given cards with A, C,...Ch. 7.6 - Prob. 2ECh. 7.6 - Politics A poll asks voters to rank Social...Ch. 7.6 - 4. Photography Two men and a woman are lined up to...Ch. 7.6 - 5. License plates Suppose that all license plates...Ch. 7.6 - Prob. 6ECh. 7.6 - 7. ATMs
(a) An automatic teller machine requires...Ch. 7.6 - 8. Keys Keys for antique General Motors cars had...Ch. 7.6 - 9. Phone numbers If the first digit of a...Ch. 7.6 - Prob. 10ECh. 7.6 - 11. Rewards As a reward for a record year, the Ace...Ch. 7.6 - 12. Mutual funds The retirement plan for a company...Ch. 7.6 - 13. Testing In a 10-question matching test with 10...Ch. 7.6 - Prob. 14ECh. 7.6 - Quality control A box of 12 transistors has 3...Ch. 7.6 - Prob. 16ECh. 7.6 - 17. Quality control A retailer purchases 100 of a...Ch. 7.6 - Prob. 18ECh. 7.6 - 19. Banking To see whether a bank has enough...Ch. 7.6 - 20. Diversity A high school principal must select...Ch. 7.6 - 21. Diversity Suppose that an employer plans to...Ch. 7.6 - 22. Lottery Four men and three women are...Ch. 7.6 - Prob. 23ECh. 7.6 - 24. Sales A car dealer has 12 different cars that...Ch. 7.6 - 25. Diversity Suppose that two openings on an...Ch. 7.6 - Prob. 26ECh. 7.6 - 27. Management Suppose that an indecisive company...Ch. 7.6 - 28. Quality control Suppose that 10 computer chips...Ch. 7.6 - Prob. 29ECh. 7.6 - Prob. 30ECh. 7.6 - Prob. 31ECh. 7.6 - 32. Evaluation Employees of a firm receive annual...Ch. 7.6 - Prob. 33ECh. 7.6 - Prob. 34ECh. 7.6 - 35. Poker A flush (5 cards from the same suit) is...Ch. 7.6 - Prob. 36ECh. 7.6 - Prob. 37ECh. 7.7 - Prob. 1CPCh. 7.7 - Can the vectors in Problems 1-4 be probability...Ch. 7.7 - Prob. 2ECh. 7.7 - Can the vectors in Problems 1-4 be probability...Ch. 7.7 - Can the vectors in Problems 1-4 be probability...Ch. 7.7 - Prob. 5ECh. 7.7 - Prob. 6ECh. 7.7 - Prob. 7ECh. 7.7 - Prob. 8ECh. 7.7 - In Problems 9-12, use the given transition matrix...Ch. 7.7 - Prob. 10ECh. 7.7 - Prob. 11ECh. 7.7 - Prob. 12ECh. 7.7 - Prob. 13ECh. 7.7 - Prob. 14ECh. 7.7 - 15. Use the matrix and initial probability vector...Ch. 7.7 - Prob. 16ECh. 7.7 - In Problems 17-20, find the steady-state vector...Ch. 7.7 - Prob. 18ECh. 7.7 - Prob. 19ECh. 7.7 - Prob. 20ECh. 7.7 - Politics Use the following information for...Ch. 7.7 - Prob. 22ECh. 7.7 - Church attendance Use the following information...Ch. 7.7 - Church attendance Use the following information...Ch. 7.7 - Church attendance Use the following information...Ch. 7.7 - Prob. 26ECh. 7.7 - Car selection Use the following information for...Ch. 7.7 - Prob. 28ECh. 7.7 - Prob. 29ECh. 7.7 - Prob. 30ECh. 7.7 - Prob. 31ECh. 7.7 - Car selection Use the following information for...Ch. 7.7 - 33. Population demographics Suppose a government...Ch. 7.7 - Prob. 34ECh. 7.7 - Prob. 35ECh. 7.7 - Prob. 36ECh. 7.7 - Prob. 37ECh. 7.7 - Prob. 38ECh. 7.7 - Prob. 39ECh. 7.7 - Prob. 40ECh. 7 - 1. If one ball is drawn from a bag containing 9...Ch. 7 - 2. Suppose a ball is drawn from a bag containing 9...Ch. 7 - 3. If the probability that an event E occurs is...Ch. 7 - 4. Suppose that a fair coin is tossed two times....Ch. 7 - 5. Suppose that a fair coin is tossed three times....Ch. 7 - 6. A card is drawn at random from an ordinary deck...Ch. 7 - 7. A deck of 52 cards is shuffled. A card is...Ch. 7 - Prob. 8RECh. 7 - Prob. 9RECh. 7 - Prob. 10RECh. 7 - 11. A bag contains 4 red balls numbered 1, 2, 3, 4...Ch. 7 - Prob. 12RECh. 7 - Prob. 13RECh. 7 - Prob. 14RECh. 7 - Prob. 15RECh. 7 - Prob. 16RECh. 7 - Prob. 17RECh. 7 - Prob. 18RECh. 7 - 19. Bag A contains 3 red, 6 black, and 5 white...Ch. 7 - Prob. 20RECh. 7 - Prob. 21RECh. 7 - Prob. 22RECh. 7 - 23. How many combinations of 8 things taken 5 at a...Ch. 7 - Prob. 24RECh. 7 - Prob. 25RECh. 7 - 26. Find the steady-state vector associated with...Ch. 7 - 27. Senior citizens In a certain city, 30,000...Ch. 7 - Prob. 28RECh. 7 - 29. United Nations Of 100 job applicants to the...Ch. 7 - Prob. 30RECh. 7 - Prob. 31RECh. 7 - Productivity Suppose that in a study of leadership...Ch. 7 - 33. Quality control A product must pass an initial...Ch. 7 - Prob. 34RECh. 7 - 36. Purchasing A regional survey found that of...Ch. 7 - 38. Management A personnel director ranks 4...Ch. 7 - Prob. 37RECh. 7 - Prob. 38RECh. 7 - Prob. 39RECh. 7 - Prob. 40RECh. 7 - 43. License plates The RBC Heritage Classic...Ch. 7 - Prob. 42RECh. 7 - Prob. 43RECh. 7 - Prob. 44RECh. 7 - Prob. 45RECh. 7 - 48. Quality control A supplier has 200 compact...Ch. 7 - 49. Stocks Mr. Way must sell stocks from 3 of the...Ch. 7 - 50. Quality control A sample of 6 fuses is drawn...Ch. 7 - Income levels Use the following information for...Ch. 7 - Prob. 50RECh. 7 - Prob. 1TCh. 7 - Prob. 2TCh. 7 - A bag contains three white balls numbered 1, 2, 3...Ch. 7 - A bag contains three white balls numbered 1, 2, 3...Ch. 7 - A bag contains three white balls numbered 1, 2, 3...Ch. 7 - Prob. 6TCh. 7 - Prob. 7TCh. 7 - Prob. 8TCh. 7 - Prob. 9TCh. 7 - 10. A cat hits the letters on a computer keyboard...Ch. 7 - Prob. 11TCh. 7 - Prob. 12TCh. 7 - Prob. 13TCh. 7 - Prob. 14TCh. 7 - Prob. 15TCh. 7 - 16. Computer chips come from two suppliers, with ...Ch. 7 - 17. A placement test is given by a university to...Ch. 7 - 18. Lactose intolerance affects about of...Ch. 7 - Prob. 19TCh. 7 - Prob. 20TCh. 7 - Prob. 21TCh. 7 - 22. A publishing company has determined that a new...
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- A data processing company has a training program for new salespeople. After completing the training program, each trainee is ranked by his or her instructor. After a year of sales, the same class of trainees is again ranked by a company supervisor according to net value of the contracts they have acquired for the company. The results for a random sample of 11 salespeople trained in the last year follow, where x is rank in training class and y is rank in sales after 1 year. Lower ranks mean higher standing in class and higher net sales. Person 1 2 3 4 5 6 x rank 8 11 2 4 5 3 y rank 7 10 1 3 2 4 Person 7 8 9 10 11 x rank 7 9 10 1 6 y rank 8 11 9 6 5 Using a 1% level of significance, test the claim that the relation between x and y is monotone (either increasing or decreasing). Verify that the Spearman rank correlation coefficient . This implies that the P-value lies between 0.002 and 0.01. State…arrow_forwardSand and clay studies were conducted at a site in California. Twelve consecutive depths, each about 15 cm deep, were studied and the following percentages of sand in the soil were recorded. 34.4 27.1 30.8 28.0 32.2 27.6 32.8 25.2 31.4 33.5 24.7 28.4 Converting this sequence of numbers to a sequence of symbols A and B, where A indicates a value above the median and B denotes a value below the median gives ABABABABAABB. Test the sequence for randomness about the median with a 5% level of significance. Verify that the number of runs is 10. What is the upper critical value c2? arrow_forwardSand and clay studies were conducted at a site in California. Twelve consecutive depths, each about 15 cm deep, were studied and the following percentages of sand in the soil were recorded. 34.4 27.1 30.8 28.0 32.2 27.6 32.8 25.2 31.4 33.5 24.7 28.4 Converting this sequence of numbers to a sequence of symbols A and B, where A indicates a value above the median and B denotes a value below the median gives ABABABABAABB. Test the sequence for randomness about the median with a 5% level of significance. Verify that the number of runs is 10. What is the upper critical value c2?arrow_forward
- 29% of all college students major in STEM (Science, Technology, Engineering, and Math). If 46 college students are randomly selected, find the probability thata. Exactly 11 of them major in STEM. b. At most 12 of them major in STEM. c. At least 11 of them major in STEM. d. Between 11 and 15 (including 11 and 15) of them major in STEM.arrow_forwardSand and clay studies were conducted at a site in California. Twelve consecutive depths, each about 15 cm deep, were studied and the following percentages of sand in the soil were recorded. 27.3 34.6 30.6 27.8 33.4 31.5 27.3 31.2 32.0 24.7 24.4 28.2 Test this sequence for randomness about the median. Converting this sequence of numbers to a sequence of symbols A and B, where A indicates a value above the median and B denotes a value below the median gives BAABAABAABBB. Verify that the number of runs is 7, the lower critical number is 3, and the upper critical number is 11. Use a 5% level of significance. State the conclusion of the test and interpret your results.arrow_forward29% of all college students major in STEM (Science, Technology, Engineering, and Math). If 46 college students are randomly selected, find the probability thata. Exactly 11 of them major in STEM. b. At most 12 of them major in STEM. c. At least 11 of them major in STEM. d. Between 11 and 15 (including 11 and 15) of them major in STEM.arrow_forward
- 4. Assume that a risk-free money market account is added to the market described in Q3. The continuously compounded rate of return on the money market account is log (1.1). (i) For each given μ, use Lagrange multipliers to determine the proportions (as a function of μ) of wealth invested in the three assets available for the minimum variance portfolio with expected return μ. (ii) Determine the market portfolio in this market and calculate its Sharp ratio.arrow_forward3. A market consists of two risky assets with rates of return R₁ and R2 and no risk-free asset. From market data the following have been estimated: ER₁ = 0.25, ER2 = 0.05, Var R₁ = 0.01, Var R2 = 0.04 and the correlation between R1 and R2 is p = -0.75. (i) Given that an investor is targeting a total expected return of μ = 0.2. What portfolio weights should they choose to meet this goal with minimum portfolio variance? Correct all your calculations up to 4 decimal points. (ii) Determine the global minimum-variance portfolio and the expected return and variance of return of this portfolio (4 d.p.). (iii) Sketch the minimum-variance frontier in the μ-σ² plane and indicate the efficient frontier. (iv) Without further calculation, explain how the minimum variance of the investor's portfolio return will change if the two risky assets were independent.arrow_forward2. A landlord is about to write a rental contract for a tenant which lasts T months. The landlord first decides the length T > 0 (need not be an integer) of the contract, the tenant then signs it and pays an initial handling fee of £100 before moving in. The landlord collects the total amount of rent erT at the end of the contract at a continuously compounded rate r> 0, but the contract stipulates that the tenant may leave before T, in which case the landlord only collects the total rent up until the tenant's departure time 7. Assume that 7 is exponentially distributed with rate > 0, λ‡r. (i) Calculate the expected total payment EW the landlord will receive in terms of T. (ii) Assume that the landlord has logarithmic utility U(w) = log(w - 100) and decides that the rental rate r should depend on the contract length T by r(T) = λ √T 1 For each given λ, what T (as a function of X) should the landlord choose so as to maximise their expected utility? Justify your answer. Hint. It might be…arrow_forward
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