ELEMENTARY STATISTICS PKG. F13
13th Edition
ISBN: 9781269373333
Author: Triola
Publisher: PEARSON C
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 8.4, Problem 6BSC
Testing Claims About Variation. In Exercises 5-16, test the given claim. Identify the null hypothesis, alternative hypothesis, test statistic, P-value, or critical value(s), then state the conclusion about the null hypothesis, as well as the final conclusion that addresses the original claim. Assume that a simple random sample is selected from a
6. Pulse Rates of Women Repeat the preceding exercise using the pulse rates of women listed in Data Set 1 “Body Data” in Appendix B. For the sample of pulse rates of women, n = 147 and s = 12.5. See the accompanying JMP display that results from using the original list of pulse rates instead of the summary statistics. (Hint: The bottom three rows of the display provide p-values for a two-tailed test, a left-tailed test, and a right-tailed test, respectively.) What do the results indicate about the effectiveness of using the
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Question 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.
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.
We 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
So
Chapter 8 Solutions
ELEMENTARY STATISTICS PKG. F13
Ch. 8.1 - Vitamin C and Aspirin A bottle contains a label...Ch. 8.1 - Estimates and Hypothesis Tests Data Set 3 Body...Ch. 8.1 - Mean Height of Men A formal hypothesis test is to...Ch. 8.1 - Interpreting P-value The Ericsson method is one of...Ch. 8.1 - Identifying H0 and H1. In Exercises 58, do the...Ch. 8.1 - Identifying H0 and H1. In Exercises 58, do the...Ch. 8.1 - Identifying H0 and H1. In Exercises 58, do the...Ch. 8.1 - Identifying H0 and H1. In Exercises 58, do the...Ch. 8.1 - Conclusions. In Exercises 912, refer to the...Ch. 8.1 - Conclusions. In Exercises 912, refer to the...
Ch. 8.1 - Conclusions. In Exercises 912, refer to the...Ch. 8.1 - Conclusions. In Exercises 912, refer to the...Ch. 8.1 - Test Statistics. In Exercises 1316, refer to the...Ch. 8.1 - Test Statistics. In Exercises 1316, refer to the...Ch. 8.1 - Test Statistics. In Exercises 1316, refer to the...Ch. 8.1 - Test Statistics. In Exercises 1316, refer to the...Ch. 8.1 - P-Values. In Exercises 1720, do the following: a....Ch. 8.1 - P-Values. In Exercises 1720, do the following: a....Ch. 8.1 - P-Values. In Exercises 1720, do the following: a....Ch. 8.1 - P-Values. In Exercises 1720, do the following: a....Ch. 8.1 - Critical Values. In Exercises 2124, refer to the...Ch. 8.1 - Critical Values. In Exercises 2124, refer to the...Ch. 8.1 - Critical Values. In Exercises 2124, refer to the...Ch. 8.1 - Critical Values. In Exercises 2124, refer to the...Ch. 8.1 - Final Conclusions. In Exercises 2528, use a...Ch. 8.1 - Final Conclusions. In Exercises 2528, use a...Ch. 8.1 - Final Conclusions. In Exercises 2528, use a...Ch. 8.1 - Final Conclusions. In Exercises 2528, use a...Ch. 8.1 - Type I and Type II Errors. In Exercises 2932,...Ch. 8.1 - Type I and Type II Errors. In Exercises 2932,...Ch. 8.1 - Type I and Type II Errors. In Exercises 2932,...Ch. 8.1 - Type I and Type II Errors. In Exercises 2932,...Ch. 8.1 - Interpreting Power Chantix (varenicline) tablets...Ch. 8.1 - Calculating Power Consider a hypothesis test of...Ch. 8.1 - Finding Sample Size to Achieve Power Researchers...Ch. 8.2 - In Exercises 14, use these results from a USA...Ch. 8.2 - In Exercises 14, use these results from a USA...Ch. 8.2 - Prob. 3BSCCh. 8.2 - In Exercises 14, use these results from a USA...Ch. 8.2 - Using Technology. In Exercises 58, identify the...Ch. 8.2 - Using Technology. In Exercises 58, identify the...Ch. 8.2 - Using Technology. In Exercises 58, identify the...Ch. 8.2 - Using Technology. In Exercises 58, identify the...Ch. 8.2 - Testing Claims About Proportions. In Exercises...Ch. 8.2 - Testing Claims About Proportions. In Exercises...Ch. 8.2 - Testing Claims About Proportions. In Exercises...Ch. 8.2 - Testing Claims About Proportions. In Exercises...Ch. 8.2 - Testing Claims About Proportions. In Exercises...Ch. 8.2 - Testing Claims About Proportions. In Exercises...Ch. 8.2 - Testing Claims About Proportions. In Exercises...Ch. 8.2 - Testing Claims About Proportions. In Exercises...Ch. 8.2 - Testing Claims About Proportions. In Exercises...Ch. 8.2 - Testing Claims About Proportions. In Exercises...Ch. 8.2 - Testing Claims About Proportions. In Exercises...Ch. 8.2 - Testing Claims About Proportions. In Exercises...Ch. 8.2 - Testing Claims About Proportions. In Exercises...Ch. 8.2 - Testing Claims About Proportions. In Exercises...Ch. 8.2 - Testing Claims About Proportions. In Exercises...Ch. 8.2 - Testing Claims About Proportions. In Exercises...Ch. 8.2 - Testing Claims About Proportions. In Exercises...Ch. 8.2 - Testing Claims About Proportions. In Exercises...Ch. 8.2 - Testing Claims About Proportions. In Exercises...Ch. 8.2 - Testing Claims About Proportions. In Exercises...Ch. 8.2 - Testing Claims About Proportions. In Exercises...Ch. 8.2 - Testing Claims About Proportions. In Exercises...Ch. 8.2 - Testing Claims About Proportions. In Exercises...Ch. 8.2 - Testing Claims About Proportions. In Exercises...Ch. 8.2 - Exact Method For each of the three different...Ch. 8.2 - Using Confidence Intervals to Test Hypotheses When...Ch. 8.2 - Power For a hypothesis test with a specified...Ch. 8.3 - Video Games: Checking Requirements Twelve...Ch. 8.3 - df If we are using the sample data from Exercise 1...Ch. 8.3 - t Test Exercise 2 refers to a t test. What is a t...Ch. 8.3 - Confidence Interval Assume that we will use the...Ch. 8.3 - Finding P-values. In Exercises 5-8, either use...Ch. 8.3 - Finding P-values. In Exercises 5-8, either use...Ch. 8.3 - Finding P-values. In Exercises 5-8, either use...Ch. 8.3 - Finding P-values. In Exercises 5-8, either use...Ch. 8.3 - Technology. In Exercises 9-12, test the given...Ch. 8.3 - Technology. In Exercises 9-12, test the given...Ch. 8.3 - Technology. In Exercises 9-12, test the given...Ch. 8.3 - Technology. In Exercises 9-12, test the given...Ch. 8.3 - Testing Hypotheses. In Exercises 13-24, assume...Ch. 8.3 - Testing Hypotheses. In Exercises 13-24, assume...Ch. 8.3 - Testing Hypotheses. In Exercises 13-24, assume...Ch. 8.3 - Testing Hypotheses. In Exercises 13-24, assume...Ch. 8.3 - Testing Hypotheses. In Exercises 13-24, assume...Ch. 8.3 - Testing Hypotheses. In Exercises 13-24, assume...Ch. 8.3 - Testing Hypotheses. In Exercises 13-24, assume...Ch. 8.3 - Testing Hypotheses. In Exercises 13-24, assume...Ch. 8.3 - Testing Hypotheses. In Exercises 13-24, assume...Ch. 8.3 - Testing Hypotheses. In Exercises 13-24, assume...Ch. 8.3 - Testing Hypotheses. In Exercises 13-24, assume...Ch. 8.3 - Testing Hypotheses. In Exercises 13-24, assume...Ch. 8.3 - Large Data Sets from Appendix B. In Exercises...Ch. 8.3 - Large Data Sets from Appendix B. In Exercises...Ch. 8.3 - Large Data Sets from Appendix B. In Exercises...Ch. 8.3 - Large Data Sets from Appendix B. In Exercises...Ch. 8.3 - Hypothesis Test with Known How do the results...Ch. 8.3 - Hypothesis Test with Known How do the results...Ch. 8.3 - Finding Critical t Values When finding critical...Ch. 8.3 - Interpreting Power For the sample data in Example...Ch. 8.4 - Cans of Coke Data Set 26 Cola Weights and Volumes...Ch. 8.4 - Cans of Coke Use the data and the claim given in...Ch. 8.4 - Cans of Coke For the sample data from Exercise 1,...Ch. 8.4 - Cans of Coke: Confidence Interval If we use the...Ch. 8.4 - Testing Claims About Variation. In Exercises 5-16,...Ch. 8.4 - Testing Claims About Variation. In Exercises 5-16,...Ch. 8.4 - Body Temperature Example 5 in Section 8-3 involved...Ch. 8.4 - Testing Claims About Variation. In Exercises 5-16,...Ch. 8.4 - Testing Claims About Variation. In Exercises 5-16,...Ch. 8.4 - Testing Claims About Variation. In Exercises 5-16,...Ch. 8.4 - Testing Claims About Variation. In Exercises 5-16,...Ch. 8.4 - Testing Claims About Variation. In Exercises 5-16,...Ch. 8.4 - Testing Claims About Variation. In Exercises 5-16,...Ch. 8.4 - Testing Claims About Variation. In Exercises 5-16,...Ch. 8.4 - Testing Claims About Variation. In Exercises 5-16,...Ch. 8.4 - Testing Claims About Variation. In Exercises 5-16,...Ch. 8.4 - Large Data Sets from Appendix B. In Exercises 17...Ch. 8.4 - Large Data Sets from Appendix B. In Exercises 17...Ch. 8.4 - Finding Critical Values of 2 For large numbers of...Ch. 8.4 - Finding Critical Values of 2 Repeat Exercise 19...Ch. 8 - Distributions Using the methods of this chapter,...Ch. 8 - Tails Determine whether the given claim involves a...Ch. 8 - Instagram Poll In a Pew Research Center poll of...Ch. 8 - P-Value Find the P-value in a test of the claim...Ch. 8 - Conclusions True or false: In hypothesis testing,...Ch. 8 - Conclusions True or false: The conclusion of fail...Ch. 8 - Uncertainty True or false: If correct methods of...Ch. 8 - Chi-Square Test In a test of the claim that = 15...Ch. 8 - Robust Explain what is meant by the statements...Ch. 8 - Equivalent Methods Which of the following...Ch. 8 - True/False Characterize each of the following...Ch. 8 - Politics A county clerk in Essex County, New...Ch. 8 - Prob. 3RECh. 8 - Red Blood Cell Count A simple random sample of 40...Ch. 8 - Perception and Reality In a presidential election,...Ch. 8 - BMI for Miss America A claimed trend of thinner...Ch. 8 - BMI for Miss America Use the same BMI indexes...Ch. 8 - Type I Error and Type II Error a. In general, what...Ch. 8 - Lightning Deaths Listed below are the numbers of...Ch. 8 - Lightning Deaths Refer to the sample data in...Ch. 8 - Lightning Deaths Listed below are the numbers of...Ch. 8 - Lightning Deaths Listed below are the numbers of...Ch. 8 - Lightning Deaths The accompanying bar chart shows...Ch. 8 - Lightning Deaths The graph in Cumulative Review...Ch. 8 - Lightning Deaths The graph in Cumulative Review...Ch. 8 - Lightning Deaths Based on the results given in...Ch. 8 - Critical Thinking: Testing the Salk Vaccine The...
Knowledge Booster
Learn more about
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.Similar questions
- In 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_forwardIn 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_forward
- T 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_forwardThe average miles per gallon for a sample of 40 cars of model SX last year was 32.1, with a population standard deviation of 3.8. A sample of 40 cars from this year’s model SX has an average of 35.2 mpg, with a population standard deviation of 5.4. Find a 99 percent confidence interval for the difference in average mpg for this car brand (this year’s model minus last year’s).Find a 99 percent confidence interval for the difference in average mpg for last year’s model minus this year’s. What does the negative difference mean?arrow_forwardA special interest group reports a tiny margin of error (plus or minus 0.04 percent) for its online survey based on 50,000 responses. Is the margin of error legitimate? (Assume that the group’s math is correct.)arrow_forward
- Suppose that 73 percent of a sample of 1,000 U.S. college students drive a used car as opposed to a new car or no car at all. Find an 80 percent confidence interval for the percentage of all U.S. college students who drive a used car.What sample size would cut this margin of error in half?arrow_forwardYou want to compare the average number of tines on the antlers of male deer in two nearby metro parks. A sample of 30 deer from the first park shows an average of 5 tines with a population standard deviation of 3. A sample of 35 deer from the second park shows an average of 6 tines with a population standard deviation of 3.2. Find a 95 percent confidence interval for the difference in average number of tines for all male deer in the two metro parks (second park minus first park).Do the parks’ deer populations differ in average size of deer antlers?arrow_forwardSuppose that you want to increase the confidence level of a particular confidence interval from 80 percent to 95 percent without changing the width of the confidence interval. Can you do it?arrow_forward
- A random sample of 1,117 U.S. college students finds that 729 go home at least once each term. Find a 98 percent confidence interval for the proportion of all U.S. college students who go home at least once each term.arrow_forwardSuppose that you make two confidence intervals with the same data set — one with a 95 percent confidence level and the other with a 99.7 percent confidence level. Which interval is wider?Is a wide confidence interval a good thing?arrow_forwardIs it true that a 95 percent confidence interval means you’re 95 percent confident that the sample statistic is in the interval?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
College Algebra (MindTap Course List)AlgebraISBN:9781305652231Author:R. David Gustafson, Jeff HughesPublisher:Cengage Learning
Functions and Change: A Modeling Approach to Coll...AlgebraISBN:9781337111348Author:Bruce Crauder, Benny Evans, Alan NoellPublisher:Cengage Learning
College Algebra (MindTap Course List)
Algebra
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:Cengage Learning
Functions and Change: A Modeling Approach to Coll...
Algebra
ISBN:9781337111348
Author:Bruce Crauder, Benny Evans, Alan Noell
Publisher:Cengage Learning
F- Test or F- statistic (F- Test of Equality of Variance); Author: Prof. Arvind Kumar Sing;https://www.youtube.com/watch?v=PdUt7InTyc8;License: Standard Youtube License
Statistics 101: F-ratio Test for Two Equal Variances; Author: Brandon Foltz;https://www.youtube.com/watch?v=UWQO4gX7-lE;License: Standard YouTube License, CC-BY
Hypothesis Testing and Confidence Intervals (FRM Part 1 – Book 2 – Chapter 5); Author: Analystprep;https://www.youtube.com/watch?v=vth3yZIUlGQ;License: Standard YouTube License, CC-BY
Understanding the Levene's Test for Equality of Variances in SPSS; Author: Dr. Todd Grande;https://www.youtube.com/watch?v=udJr8V2P8Xo;License: Standard Youtube License