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  -0.33% late in the trading day and you are convinced that other investors are not aware of the results, based on the runs test results, an investor would:   Buy or long the stock in late trading.

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…

Q3.25

Suppose sales for the past 6 months have been84, 81, 95, 87, 114, and 112 What is the 3-month moving average for the 4th period? (please round your answer to 1 decimal place)

A scatterplot with no linear trend will have an r value of zero true or false?