Essentials of Statistics, Books a la Carte Edition (5th Edition)
5th Edition
ISBN: 9780321926739
Author: Mario F. Triola
Publisher: PEARSON
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Chapter 8.4, Problem 1BSC
Video Games: Checking Requirements Twelve different video games showing alcohol use were observed. The duration times of alcohol use were recorded, with the times (seconds) listed below (based on data from “Content and Ratings of Teen-Rated Video Games,” by Haninger and Thompson, Journal of the American Medical Association, Vol. 291, No. 7). What requirements must be satisfied to test the claim that the sample is from a population with a
84 14 583 50 0 57 207 43 178 0 2 57
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In this problem, we consider a Brownian motion (W+) t≥0. We consider a stock model (St)t>0
given (under the measure P) by
d.St 0.03 St dt + 0.2 St dwt,
with So 2. We assume that the interest rate is r = 0.06. The purpose of this problem is to
price an option on this stock (which we name cubic put). This option is European-type, with
maturity 3 months (i.e. T = 0.25 years), and payoff given by
F = (8-5)+
(a) Write the Stochastic Differential Equation satisfied by (St) under the risk-neutral measure
Q. (You don't need to prove it, simply give the answer.)
(b) Give the price of a regular European put on (St) with maturity 3 months and strike K = 2.
(c) Let X =
S. Find the Stochastic Differential Equation satisfied by the process (Xt)
under the measure Q.
(d) Find an explicit expression for X₁ = S3 under measure Q.
(e) Using the results above, find the price of the cubic put option mentioned above.
(f) Is the price in (e) the same as in question (b)? (Explain why.)
Chapter 8 Solutions
Essentials of Statistics, Books a la Carte Edition (5th Edition)
Ch. 8.2 - MMs and Aspirin A package label includes a claim...Ch. 8.2 - Estimates and Hypothesis Tests Data Set 20 in...Ch. 8.2 - Mean Body Temperature A formal hypothesis test is...Ch. 8.2 - Interpreting P-value The Ericsson method is one of...Ch. 8.2 - Stating Conclusions About Claims. In Exercises...Ch. 8.2 - Stating Conclusions About Claims. In Exercises...Ch. 8.2 - Stating Conclusions About Claims. In Exercises...Ch. 8.2 - Stating Conclusions About Claims. In Exercises...Ch. 8.2 - Forming Conclusions. In Exercises 9-12, refer to...Ch. 8.2 - Forming Conclusions. In Exercises 9-12, refer to...
Ch. 8.2 - Prob. 11BSCCh. 8.2 - Forming Conclusions. In Exercises 9-12, refer to...Ch. 8.2 - Prob. 13BSCCh. 8.2 - Finding Test Statistics. In Exercises 13-16 find A...Ch. 8.2 - Prob. 15BSCCh. 8.2 - Finding Test Statistics. In Exercises 13-16 find A...Ch. 8.2 - Prob. 17BSCCh. 8.2 - Finding P-Values and Critical Values. In Exercises...Ch. 8.2 - Prob. 19BSCCh. 8.2 - Finding P-Values and Critical Values. In Exercises...Ch. 8.2 - Prob. 21BSCCh. 8.2 - Finding P-Values and Critical Values. In Exercises...Ch. 8.2 - Finding P-Values and Critical Values. In Exercises...Ch. 8.2 - Prob. 24BSCCh. 8.2 - Prob. 25BSCCh. 8.2 - Stating Conclusions. In Exercises 25-28, assume a...Ch. 8.2 - Prob. 27BSCCh. 8.2 - Stating Conclusions. In Exercises 25-28, assume a...Ch. 8.2 - Prob. 29BSCCh. 8.2 - Terminology. In Exercises 29 and 30, use the given...Ch. 8.2 - Prob. 31BSCCh. 8.2 - Type I and Type II Errors. In Exercises 31-34,...Ch. 8.2 - Type I and Type II Errors. In Exercises 31-34,...Ch. 8.2 - Prob. 34BSCCh. 8.2 - Interpreting Power Chantix tablets are used as an...Ch. 8.2 - Calculating Power Consider a hypothesis test of...Ch. 8.2 - Finding Sample Size to Achieve Power Researchers...Ch. 8.3 - Prob. 1BSCCh. 8.3 - Prob. 2BSCCh. 8.3 - Prob. 3BSCCh. 8.3 - Prob. 4BSCCh. 8.3 - Using Technology. In Exercises 5-8, identify the...Ch. 8.3 - Prob. 6BSCCh. 8.3 - Prob. 7BSCCh. 8.3 - Prob. 8BSCCh. 8.3 - Testing Claims About Proportions. In Exercises...Ch. 8.3 - Prob. 10BSCCh. 8.3 - Testing Claims About Proportions. In Exercises...Ch. 8.3 - Testing Claims About Proportions. In Exercises...Ch. 8.3 - Prob. 13BSCCh. 8.3 - Testing Claims About Proportions. In Exercises...Ch. 8.3 - Testing Claims About Proportions. In Exercises...Ch. 8.3 - Testing Claims About Proportions. In Exercises...Ch. 8.3 - Testing Claims About Proportions. In Exercises...Ch. 8.3 - Testing Claims About Proportions. In Exercises...Ch. 8.3 - Testing Claims About Proportions. In Exercises...Ch. 8.3 - Testing Claims About Proportions. In Exercises...Ch. 8.3 - Testing Claims About Proportions. In Exercises...Ch. 8.3 - Testing Claims About Proportions. In Exercises...Ch. 8.3 - Testing Claims About Proportions. In Exercises...Ch. 8.3 - Testing Claims About Proportions. In Exercises...Ch. 8.3 - Testing Claims About Proportions. In Exercises...Ch. 8.3 - Testing Claims About Proportions. In Exercises...Ch. 8.3 - Testing Claims About Proportions. In Exercises...Ch. 8.3 - Testing Claims About Proportions. In Exercises...Ch. 8.3 - Prob. 29BSCCh. 8.3 - Testing Claims About Proportions. In Exercises...Ch. 8.3 - Testing Claims About Proportions. In Exercises...Ch. 8.3 - Testing Claims About Proportions. In Exercises...Ch. 8.3 - Prob. 33BSCCh. 8.3 - Large Data Sets. In Exercises 33 and 34, use the...Ch. 8.3 - Prob. 35BBCh. 8.3 - Using Confidence Intervals to Test Hypotheses When...Ch. 8.3 - Prob. 37BBCh. 8.4 - Video Games: Checking Requirements Twelve...Ch. 8.4 - df If we are using the sample data from Exercise 1...Ch. 8.4 - Prob. 3BSCCh. 8.4 - Prob. 4BSCCh. 8.4 - Prob. 5BSCCh. 8.4 - Prob. 6BSCCh. 8.4 - Finding P-values. In Exercises 5-8, either use...Ch. 8.4 - Finding P-values. In Exercises 5-8, either use...Ch. 8.4 - Testing Hypotheses. In Exercises 9-24, assume that...Ch. 8.4 - Prob. 10BSCCh. 8.4 - Prob. 11BSCCh. 8.4 - Testing Hypotheses. In Exercises 9-24, assume that...Ch. 8.4 - Testing Hypotheses. In Exercises 9-24, assume that...Ch. 8.4 - Prob. 14BSCCh. 8.4 - Testing Hypotheses. In Exercises 13-24, assume...Ch. 8.4 - Testing Hypotheses. In Exercises 9-24, assume that...Ch. 8.4 - Prob. 17BSCCh. 8.4 - Prob. 18BSCCh. 8.4 - Testing Hypotheses. In Exercises 9-24, assume that...Ch. 8.4 - Testing Hypotheses. In Exercises 9-24, assume that...Ch. 8.4 - Testing Hypotheses. In Exercises 13-24, assume...Ch. 8.4 - Testing Hypotheses. In Exercises 9-24, assume that...Ch. 8.4 - Testing Hypotheses. In Exercises 9-24, assume that...Ch. 8.4 - Testing Hypotheses. In Exercises 9-24, assume that...Ch. 8.4 - Large Data Sets from Appendix B. In Exercise...Ch. 8.4 - Large Data Sets from Appendix B. In Exercise...Ch. 8.4 - Prob. 27BSCCh. 8.4 - Prob. 28BSCCh. 8.4 - Prob. 29BBCh. 8.4 - Prob. 30BBCh. 8.4 - Hypothesis Tests with Known . In Exercises 29-32,...Ch. 8.4 - Hypothesis Tests with Known . In Exercises 29-32,...Ch. 8.4 - Prob. 33BBCh. 8.4 - Prob. 34BBCh. 8.4 - Interpreting Power For Example 1 in this section,...Ch. 8.5 - Requirements If we want to use the sample data...Ch. 8.5 - Confidence Interval Method of Hypothesis Testing...Ch. 8.5 - Hypothesis Test For the sample data from Exercise...Ch. 8.5 - Testing Claims About Variation. In Exercises 5-16,...Ch. 8.5 - Testing Claims About Variation. In Exercises 5-16,...Ch. 8.5 - Testing Claims About Variation. In Exercises 5-16,...Ch. 8.5 - Prob. 8BSCCh. 8.5 - Prob. 9BSCCh. 8.5 - Prob. 10BSCCh. 8.5 - Prob. 11BSCCh. 8.5 - Testing Claims About Variation. In Exercises 5-16,...Ch. 8.5 - Prob. 13BSCCh. 8.5 - Prob. 14BSCCh. 8.5 - Testing Claims About Variation. In Exercises 5-16,...Ch. 8.5 - Testing Claims About Variation. In Exercises 5-16,...Ch. 8.5 - Prob. 17BSCCh. 8.5 - Prob. 18BSCCh. 8.5 - Prob. 19BBCh. 8.5 - Prob. 20BBCh. 8 - Wristwatch Accuracy Students of the author...Ch. 8 - Wristwatch Accuracy Students of the author...Ch. 8 - Prob. 3CQQCh. 8 - Normality For the hypothesis test in Exercise 1,...Ch. 8 - Prob. 5CQQCh. 8 - P-Value Kind the P-value in a test of the claim...Ch. 8 - Prob. 7CQQCh. 8 - Prob. 8CQQCh. 8 - Conclusions True or false: In hypothesis testing,...Ch. 8 - Prob. 10CQQCh. 8 - Prob. 1RECh. 8 - Leisure Time In a Gallup poll, 1010 adults were...Ch. 8 - Prob. 3RECh. 8 - Prob. 4RECh. 8 - Prob. 5RECh. 8 - Monitoring Lead in Air Listed below are measured...Ch. 8 - Prob. 7RECh. 8 - Prob. 8RECh. 8 - Prob. 9RECh. 8 - Prob. 10RECh. 8 - Dictionary Words A simple random sample of pages...Ch. 8 - Prob. 2CRECh. 8 - Prob. 3CRECh. 8 - Hypothesis Test for Dictionary Words Refer to the...Ch. 8 - Prob. 5CRECh. 8 - Prob. 6CRECh. 8 - Prob. 7CRECh. 8 - Prob. 8CRECh. 8 - Prob. 9CRECh. 8 - Prob. 10CRE
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