4. You complete a runs test on daily data for a thinly traded stock and the Z statistic is 4.55.  If the stock has a return of  +0.21% late in the trading day and you are convinced that other investors are not aware of the results of your study, based on the runs test results, an investor would:   Buy or long the stock in late trading. Sell or short the stock in late trading. Wait an additional day to buy the stock. Wait an additional day to short the stock. Take neither a long or short position in the stock.

.A new, miracle diabetes drug that diminishes major symptoms of diabetes has been approved by the FDA. Health care professionals and researchers believe that the new drug will prolong lifespan of diabetes patients. If the population is in steady state and the incidence is constant, what will the effect of this new drug be on the prevalence of diabetes in the population? Explain.

4. Along with interest rates, life expectancy is a component in pricing financial annuities. Suppose that you know that last year average life expectancy was 77 years for your annuity holders. Now you want to know if your clients this year have a longer life expectancy, on average, so you randomly sample n=20 of your recently deceased annuity holders to see actual age at death. Using a 5% level of significance, test whether or not the new data shows evidence of your annuity holders now live longer than 77 years, on average. The data below are the sample data (in years of life): (78,75,83,81,81,77,78,79,79,81,76,79,77,76,79,81,73,74,78,79) a) Does this sample indicate that life expectancy has increased? Test an appropriate hypothesis and state your conclusion (use a 5% level of significance). Be sure to check the necessary assumptions and conditions before conducting your test. b) Construct A 90% confidence interval for the true average age of death for the population of your annuity…

I need help figuring out how to determine the percentage of increase.    For each of the following models, state what the expected value of Y is when X = 50. Also, state how the predicted value of Y changes when X increases by 5 units (i.e., a 10% increase). 1. Y = 73 + 10X     X=50, y=73+10*50 = 573     Y = 573    Change = 50 units 2. lnY = 4.9 + 0.025X     x = 50, y = exp(4.9 + 0.025*50) = 468.7    =exp(0.025*5)=1.13 units.     Y = 468.7     Change = 1.13 units 3. Y = -632 + 328(lnX)     X = 50, y=-632 + 328*(in50) = 651.1     = 328*In(5) = 527.9     Y = 651.1     Change = 527.9 units 4. lnY = 2.7 + 0.94(lnX)     x=50, y=exp(2.7 + 0.94*In50) = 588.3     = exp (0.94*In5) = 4.54     Y = 588.3     Change = 4.54 units