The American Association of Individual Investors (AAII) On-Line Discount Broker Survey polls members on their experiences with electronic trades handled by discount brokers. As part of the survey, members were asked to rate their satisfaction with the trade price and the speed of execution, as well as provide an overall satisfaction rating. Possible responses (scores) were no opinion (0), unsatisfied (1), somewhat satisfied (2), satisfied (3), and very satisfied (4). For each broker, summary scores were computed by computing a weighted average of the scores provided by each respondent. A portion the survey results follow. Overall Satisfaction with Electronic Trades Brokerage AA BB CC DD EE FF GG HH II 33 KK LL MM NN Satisfaction with Trade Price 3.2 3.3 3.1 2.8 2.9 2.4 2.7 2.4 2.6 2.3 3.7 2.5 3 1 Satisfaction with Speed of Execution 3.1 3.1 3.3 3.5 3.2 3.2 3.8 3.7 2.6 2.7 3.9 2.5 3 4 3.2 3.2 4 3.7 3 2.7 2.7 3.4 2.7 2.3 4 2.5 3 2

An insurance company offers four different deductible levels—none, low, medium, and high—for its homeowner's policyholders and three different levels—low, medium, and high—for its automobile policyholders. The accompanying table gives proportions for the various categories of policyholders who have both types of insurance. For example, the proportion of individuals with both low homeowner's deductible and low auto deductible is 0.07 (7% of all such individuals).   Homeowner's Auto      N L M H L 0.04 0.07 0.05 0.01 M 0.07 0.11 0.20 0.10 H 0.02 0.03 0.15 0.15 Suppose an individual having both types of policies is randomly selected. (a) What is the probability that the individual has a medium auto deductible and a high homeowner's deductible?(b) What is the probability that the individual has a low auto deductible? A low homeowner's deductible? auto deductible        homeowner's deductible     (c) What is the probability that the individual is in the same…

The Wall Street Journal's Shareholder Scoreboard tracks the performance of 1,000 major U.S. companies. The performance of each company is rated based on the annual total return, including stock price changes and the re investment of dividends. Ratings are assigned by dividing all 1,000 companies into five groups from A (top 20%) , B (next 20%), to E (bottom 20%). Shown here are the one- year ratings for a sample of 60 of the largest companies. ABCD 5 8 15 20 12 Do the largest companies differ in performance from the performance of the 1,000 companies in the Shareholder Scoreboard? Use α = 0.05. State the null and alternative hypotheses. Ho: The proportions of the largest companies compared to the 1,000 companies are the same for at least one of the five groups. Ha : The proportions of the largest companies compared to the 1,000 companies are different for all five groups. Ho: The largest companies differ in performance from the 1,000 companies. H₂: : The largest companies do not differ…

Official unemployment rates for the U.S. population are reportedon a monthly basis by the Bureau of Labor Statistics.For the period October, 2011, through January, 2012, theofficial unemployment rates were 8.9% (Oct.), 8.7% (Nov.),8.5% (Dec.), and 8.3% (Jan.). (Source: U.S. Bureau of LaborStatistics, www.bls.gov.) If the unemployment rateswere to continue to decrease following a linear model,(a) predict the unemployment rate on January, 2013.(b) predict when the United States would reach a zero unemploymentrate.