
Mathematical Statistics with Applications
7th Edition
ISBN: 9781111798789
Author: Dennis O. Wackerly
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 8, Problem 127SE
To determine
Verify that an approximate
Expert Solution & Answer

Trending nowThis is a popular 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 8 Solutions
Mathematical Statistics with Applications
Ch. 8.2 - Using the identity ()=[E()]+[E()]=[E()]+B(), Show...Ch. 8.2 - a. If is an unbiased estimator for , what is B()?...Ch. 8.2 - Suppose that is an estimator for a parameter and...Ch. 8.2 - Refer to Exercise 8.1. a. If is an unbiased...Ch. 8.2 - Refer to Exercises 8.1 and consider the unbiased...Ch. 8.2 - Suppose that E(1)=E(2)=, V(1)=12, and V(2)=22....Ch. 8.2 - Consider the situation described in Exercise 8.6....Ch. 8.2 - Suppose that Y1, Y2, Y3 denote a random sample...Ch. 8.2 - Suppose that Y1, Y2,, Yn constitute a random...Ch. 8.2 - The number of breakdowns per week for a type of...
Ch. 8.2 - Let Y1, Y2, , Yn denote a random sample of size n...Ch. 8.2 - The reading on a voltage meter connected to a test...Ch. 8.2 - We have seen that if Y has a binomial distribution...Ch. 8.2 - Prob. 14ECh. 8.2 - Let Y, Y2,,Yn denote a random sample of size n...Ch. 8.2 - Suppose that Y1, Y2,,Yn constitute a random sample...Ch. 8.2 - If Y has a binomial distribution with parameters n...Ch. 8.2 - Let Y1, Y2, , Yn denote a random sample of size n...Ch. 8.2 - Prob. 19ECh. 8.2 - Suppose that Y1, Y2, Y3, Y4 denote a random sample...Ch. 8.4 - An investigator is interested in the possibility...Ch. 8.4 - An increase in the rate of consumer savings...Ch. 8.4 - The Environmental Protection Agency and the...Ch. 8.4 - A study was conducted to compare the mean number...Ch. 8.4 - The Mars twin rovers, Spirit and Opportunity,...Ch. 8.4 - A random sample of 985 likely votersthose who are...Ch. 8.4 - In a study of the relationship between birth order...Ch. 8.4 - Sometimes surveys provide interesting information...Ch. 8.4 - Refer to Exercise 8.29. Give the point estimate...Ch. 8.4 - In a study to compare the perceived effects of two...Ch. 8.4 - An auditor randomly samples 20 accounts receivable...Ch. 8.4 - Refer to Exercise 8.32. From the data given on the...Ch. 8.4 - We can place a 2-standard-deviation bound on the...Ch. 8.4 - Prob. 35ECh. 8.4 - Prob. 36ECh. 8.4 - Refer to Exercise 8.36. An engineer observes n =...Ch. 8.4 - Prob. 38ECh. 8.5 - Suppose that the random variable Y has a gamma...Ch. 8.5 - Suppose that the random variable Y is an...Ch. 8.5 - Suppose that Y is normally distributed with mean 0...Ch. 8.5 - Prob. 42ECh. 8.5 - Prob. 43ECh. 8.5 - Let Y have probability density function...Ch. 8.5 - Refer to Exercise 8.44. a Use the pivotal quantity...Ch. 8.5 - Refer to Example 8.4 and suppose that Y is a...Ch. 8.5 - Refer to Exercise 8.46. Assume that Y1, Y2, , Yn...Ch. 8.5 - Prob. 48ECh. 8.6 - Refer to Example 8.8. In this example, p1 and p2...Ch. 8.6 - Prob. 51ECh. 8.6 - Prob. 52ECh. 8.6 - Prob. 53ECh. 8.6 - Prob. 54ECh. 8.6 - Prob. 55ECh. 8.6 - Is Americas romance with movies on the wane? In a...Ch. 8.6 - Refer to Exercise 8.29. According to the result...Ch. 8.6 - The administrators for a hospital wished to...Ch. 8.6 - When it comes to advertising, tweens are not ready...Ch. 8.6 - What is the normal body temperature for healthy...Ch. 8.6 - A small amount of the trace element selenium, from...Ch. 8.6 - The following statistics are the result of an...Ch. 8.6 - Most Americans love participating in or at least...Ch. 8.6 - In a CNN/USA Today/Gallup Poll, 1000 Americans...Ch. 8.6 - For a comparison of the rates of defectives...Ch. 8.6 - Historically, biology has been taught through...Ch. 8.6 - One suggested method for solving the...Ch. 8.6 - Prob. 68ECh. 8.6 - Prob. 69ECh. 8.7 - Let Y be a binomial random variable with parameter...Ch. 8.7 - A state wildlife service wants to estimate the...Ch. 8.7 - Telephone pollsters often interview between 1000...Ch. 8.7 - Refer to Exercise 8.59. How many tweens should...Ch. 8.7 - Prob. 74ECh. 8.7 - Prob. 75ECh. 8.7 - Refer to the comparison of the daily adult intake...Ch. 8.7 - Prob. 77ECh. 8.7 - Refer to Exercise 8.65. How many items should be...Ch. 8.7 - Refer to Exercise 8.66. a Another similar study is...Ch. 8.8 - Although there are many treatments for bulimia...Ch. 8.8 - The carapace lengths of ten lobsters examined in a...Ch. 8.8 - Scholastic Assessment Test (SAT) scores, which...Ch. 8.8 - Chronic anterior compartment syndrome is a...Ch. 8.8 - Organic chemists often purify organic compounds by...Ch. 8.8 - Two new drugs were given to patients with...Ch. 8.8 - The Environmental Protection Agency (EPA) has...Ch. 8.8 - Refer to Exercise 8.88. Another common...Ch. 8.8 - Do SAT scores for high school students differ...Ch. 8.8 - Seasonal ranges (in hectares) for alligators were...Ch. 8.8 - Solid copper produced by sintering (heating...Ch. 8.8 - Prob. 93ECh. 8.8 - Suppose that we obtain independent samples of...Ch. 8.9 - The EPA has set a maximum noise level for heavy...Ch. 8.9 - In Exercise 8.81, we gave the carapace lengths of...Ch. 8.9 - Suppose that S2 is the sample variance based on a...Ch. 8.9 - Prob. 98ECh. 8.9 - Prob. 99ECh. 8.9 - Industrial light bulbs should have a mean life...Ch. 8.9 - In laboratory work, it is desirable to run careful...Ch. 8.9 - The ages of a random sample of live university...Ch. 8.9 - A precision instrument is guaranteed to read...Ch. 8 - Prob. 104SECh. 8 - Prob. 105SECh. 8 - In a controlled pollination study involving Phlox...Ch. 8 - Prob. 107SECh. 8 - Prob. 108SECh. 8 - To estimate the proportion of unemployed workers...Ch. 8 - Prob. 110SECh. 8 - Prob. 111SECh. 8 - Prob. 112SECh. 8 - Prob. 113SECh. 8 - Prob. 114SECh. 8 - Prob. 115SECh. 8 - Do we lose our memory capacity as we get older? In...Ch. 8 - Prob. 117SECh. 8 - Prob. 118SECh. 8 - Prob. 119SECh. 8 - Two methods for teaching reading were applied to...Ch. 8 - Prob. 121SECh. 8 - Prob. 122SECh. 8 - Prob. 123SECh. 8 - Prob. 124SECh. 8 - Prob. 125SECh. 8 - Prob. 126SECh. 8 - Prob. 127SECh. 8 - Prob. 128SECh. 8 - Prob. 129SECh. 8 - Prob. 130SECh. 8 - Refer to Exercises 1.129 and 1.130. S2 and S2 are...Ch. 8 - Prob. 132SECh. 8 - Prob. 133SECh. 8 - Prob. 134SECh. 8 - Prob. 135SECh. 8 - Prob. 136SE
Knowledge Booster
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 HillBig Ideas Math A Bridge To Success Algebra 1: Stu...AlgebraISBN:9781680331141Author:HOUGHTON MIFFLIN HARCOURTPublisher:Houghton Mifflin Harcourt

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