Elementary Statistics
12th Edition
ISBN: 9780321836960
Author: Mario F. Triola
Publisher: PEARSON
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Chapter 13.3, Problem 1BSC
Wilcoxon Signed-Ranks Test for Freshman 15 The following table lists some of the weights from Data Set 4 in Appendix B. Those weights were measured from college students in September and later in April of their freshman year. Assume that we plan to use the Wilcoxon signed-ranks test to test the claim of no difference between September weights and April weights. What requirements must be satisfied for this test? Is there any requirement that the populations must have a
| September weight | 67 | 53 | 64 | 74 | 67 | 70 | 56 | 74 | 62 | 57 |
| April weight | 66 | 52 | 68 | 77 | 67 | 71 | 60 | 82 | 65 | 58 |
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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 13 Solutions
Elementary Statistics
Ch. 13.2 - Prob. 1BSCCh. 13.2 - Prob. 2BSCCh. 13.2 - Prob. 3BSCCh. 13.2 - Prob. 4BSCCh. 13.2 - Prob. 5BSCCh. 13.2 - Prob. 6BSCCh. 13.2 - Prob. 7BSCCh. 13.2 - Prob. 8BSCCh. 13.2 - Prob. 9BSCCh. 13.2 - Prob. 10BSC
Ch. 13.2 - In Exercises 9-12, use the sign test for the data...Ch. 13.2 - Prob. 12BSCCh. 13.2 - Prob. 13BSCCh. 13.2 - In Exercises 13-16, use the sign test for the...Ch. 13.2 - Prob. 15BSCCh. 13.2 - In Exercises 13-16, use the sign test for the...Ch. 13.2 - Appendix B Data Sets.In Exercises 13-16, refer to...Ch. 13.2 - Prob. 18BSCCh. 13.2 - Appendix B Data Sets.In Exercises 17-20, refer to...Ch. 13.2 - Appendix B Data Sets.In Exercises 17-20, refer to...Ch. 13.2 - Procedures for Handling Ties In the sign test...Ch. 13.2 - Prob. 22BBCh. 13.3 - Wilcoxon Signed-Ranks Test for Freshman 15 The...Ch. 13.3 - Prob. 2BSCCh. 13.3 - Prob. 3BSCCh. 13.3 - Prob. 4BSCCh. 13.3 - Prob. 5BSCCh. 13.3 - Prob. 6BSCCh. 13.3 - Using the Wilcoxon Signed-Ranks Test.In Exercises...Ch. 13.3 - Prob. 8BSCCh. 13.3 - Prob. 9BSCCh. 13.3 - Prob. 10BSCCh. 13.3 - Appendix B Data Sets.In Exercises 9-12, refer to...Ch. 13.3 - Prob. 12BSCCh. 13.3 - Prob. 13BBCh. 13.4 - Prob. 1BSCCh. 13.4 - Prob. 2BSCCh. 13.4 - Prob. 3BSCCh. 13.4 - Prob. 4BSCCh. 13.4 - Prob. 5BSCCh. 13.4 - Prob. 6BSCCh. 13.4 - Prob. 7BSCCh. 13.4 - Prob. 8BSCCh. 13.4 - Prob. 9BSCCh. 13.4 - Prob. 10BSCCh. 13.4 - Prob. 11BSCCh. 13.4 - Prob. 12BSCCh. 13.4 - Prob. 13BBCh. 13.4 - Prob. 14BBCh. 13.5 - Effect of Lead on IQ Score Listed below are full...Ch. 13.5 - Prob. 2BSCCh. 13.5 - Notation For the data given in Exercise 1,...Ch. 13.5 - Prob. 4BSCCh. 13.5 - Prob. 5BSCCh. 13.5 - Prob. 6BSCCh. 13.5 - Prob. 7BSCCh. 13.5 - Using tho Kruskal-Wallis Test.In Exercises 5-8,...Ch. 13.5 - Prob. 9BSCCh. 13.5 - Prob. 10BSCCh. 13.5 - Prob. 11BSCCh. 13.5 - Car Crash Measurements Refer to Data See 13 in...Ch. 13.5 - Prob. 13BBCh. 13.6 - Regression If the methods of this section arc used...Ch. 13.6 - Level of Measurement Which of the levels of...Ch. 13.6 - Prob. 3BSCCh. 13.6 - Prob. 4BSCCh. 13.6 - Prob. 5BSCCh. 13.6 - Prob. 6BSCCh. 13.6 - Prob. 7BSCCh. 13.6 - Testing for Rank Correlation. In Exercises 7-12,...Ch. 13.6 - Prob. 9BSCCh. 13.6 - Testing for Rank Correlation. In Exercises 7-12,...Ch. 13.6 - Prob. 11BSCCh. 13.6 - Prob. 12BSCCh. 13.6 - Appendix B Data Sets. In Exercises 13-16, use the...Ch. 13.6 - Prob. 14BSCCh. 13.6 - Appendix B Data Sets. In Exercises 13-16, use the...Ch. 13.6 - Prob. 16BSCCh. 13.6 - Prob. 17BBCh. 13.7 - Prob. 1BSCCh. 13.7 - Prob. 2BSCCh. 13.7 - Prob. 3BSCCh. 13.7 - Prob. 4BSCCh. 13.7 - Prob. 5BSCCh. 13.7 - Prob. 6BSCCh. 13.7 - Prob. 7BSCCh. 13.7 - Prob. 8BSCCh. 13.7 - Prob. 9BSCCh. 13.7 - Baseball World Series Victories Test the claim...Ch. 13.7 - Prob. 11BSCCh. 13.7 - Prob. 12BSCCh. 13 - Prob. 1CQQCh. 13 - Prob. 2CQQCh. 13 - Prob. 3CQQCh. 13 - Prob. 4CQQCh. 13 - Prob. 5CQQCh. 13 - Prob. 6CQQCh. 13 - Prob. 7CQQCh. 13 - Prob. 8CQQCh. 13 - Prob. 9CQQCh. 13 - Sign Test Identify three different applications of...Ch. 13 - Prob. 1RECh. 13 - Prob. 2RECh. 13 - Prob. 3RECh. 13 - Prob. 4RECh. 13 - Prob. 5RECh. 13 - Using Nonparametric Tests. In Exercises 110, use a...Ch. 13 - Prob. 7RECh. 13 - Prob. 8RECh. 13 - Prob. 9RECh. 13 - Prob. 10RECh. 13 - Prob. 1CRECh. 13 - Please be aware that some of the following...Ch. 13 - Prob. 3CRECh. 13 - Prob. 4CRECh. 13 - Prob. 5CRECh. 13 - Prob. 6CRECh. 13 - Prob. 7CRECh. 13 - Prob. 8CRECh. 13 - Prob. 9CRECh. 13 - Prob. 10CRECh. 13 - Prob. 11TPCh. 13 - Prob. 10FDD
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