Mercury in Freshwater Fish Some experts believe that 20 % of all freshwater fish in the United States have such high levels of mercury that they are dangerous to eat. Suppose a fish market has 250 fish tested, and 60 of them have dangerous levels of mercury. Test the hypothesis that this sample is not from a population with 20 % dangerous fish. Use a significance level of 0.05. Comment on your conclusion: Are you saying that the percentage of dangerous fish is definitely 20 % ? Explain.
Mercury in Freshwater Fish Some experts believe that 20 % of all freshwater fish in the United States have such high levels of mercury that they are dangerous to eat. Suppose a fish market has 250 fish tested, and 60 of them have dangerous levels of mercury. Test the hypothesis that this sample is not from a population with 20 % dangerous fish. Use a significance level of 0.05. Comment on your conclusion: Are you saying that the percentage of dangerous fish is definitely 20 % ? Explain.
Solution Summary: The author explains how to test whether the sample is not from the population with 20% dangerous fish.
Mercury in Freshwater Fish Some experts believe that
20
%
of all freshwater fish in the United States have such high levels of mercury that they are dangerous to eat. Suppose a fish market has 250 fish tested, and 60 of them have dangerous levels of mercury. Test the hypothesis that this sample is not from a population with
20
%
dangerous fish. Use a significance level of
0.05.
Comment on your conclusion: Are you saying that the percentage of dangerous fish is definitely
20
%
?
Explain.
Problem 1.We consider a two-period binomial model with the following properties: each period lastsone (1) year and the current stock price is S0 = 4. On each period, the stock price doubleswhen it moves up and is reduced by half when it moves down. The annual interest rateon the money market is 25%.
We consider four options on this market: A European call option with maturity T = 2 years and strike price K = 5; A European put option with maturity T = 2 years and strike price K = 5; An American call option with maturity T = 2 years and strike price K = 5; An American put option with maturity T = 2 years and strike price K = 5.(a) Find the price at time 0 of both European options.(b) Find the price at time 0 of both American options. Compare your results with (a)and comment.(c) For each of the American options, describe the optimal exercising strategy.(d) We assume that you sell the American put to a market participant A for the pricefound in (b). Explain how you act on the market…
What is the standard scores associated to the left of z is 0.1446
Note: The purpose of this problem below is to use computational techniques (Excelspreadsheet, Matlab, R, Python, etc.) and code the dynamic programming ideas seen inclass. Please provide the numerical answer to the questions as well as a sample of yourwork (spreadsheet, code file, etc.).We consider an N-period binomial model with the following properties: N = 60, thecurrent stock price is S0 = 1000; on each period, the stock price increases by 0.5% whenit moves up and decreases by 0.3% when it moves down. The annual interest rate on themoney market is 5%. (Notice that this model is a CRR model, which means that thebinomial tree is recombining.)(a) Find the price at time t0 = 0 of a (European) call option with strike price K = 1040and maturity T = 1 year.(b) Find the price at time t0 = 0 of a (European) put option with strike price K = 1040and maturity T = 1 year.(c) We consider now, that you are at time t5 (i.e. after 5 periods, which represents 1month later). Assume that the stock…
Chapter 8 Solutions
The King's minion: Richelieu, Louis XIII, and the affair of Cinq-Mars
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.
what is Research Design, Research Design Types, and Research Design Methods; Author: Educational Hub;https://www.youtube.com/watch?v=LpmGSioXxdo;License: Standard YouTube License, CC-BY