Understandable Statistics: Concepts and Methods
12th Edition
ISBN: 9781337119917
Author: Charles Henry Brase, Corrinne Pellillo Brase
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Videos
Question
Chapter 6.4, Problem 6P
To determine
Define sampling distribution.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Scenario
Sales of products by color follow a peculiar, but predictable, pattern that determines how many units will sell in
any given year. This pattern is shown below
Product Color
1995
1996
1997
Red
28
42
21
1998
23
1999
29
2000
2001
2002
Unit Sales
2003 2004
15
8
4
2
1
2005 2006
discontinued
Green
26
39
20
22
28
14
7
4
2
White
43
65
33
36
45
23
12
Brown
58
87
44
48
60
Yellow
37
56
28
31
Black
28
42
21
Orange
19
29
Purple
Total
28
42
21
49
68
78
95
123
176
181
164
127
24
179
Questions
A) Which color will sell the most units in 2007?
B) Which color will sell the most units combined in the 2007 to 2009 period?
Please show all your analysis, leave formulas in cells, and specify any assumptions you make.
One hundred students were surveyed about their preference between dogs and cats. The following two-way table displays data for the sample of students who responded to the survey.
Preference
Male
Female
TOTAL
Prefers dogs
\[36\]
\[20\]
\[56\]
Prefers cats
\[10\]
\[26\]
\[36\]
No preference
\[2\]
\[6\]
\[8\]
TOTAL
\[48\]
\[52\]
\[100\]
problem 1
Find the probability that a randomly selected student prefers dogs.Enter your answer as a fraction or decimal.
\[P\left(\text{prefers dogs}\right)=\]
Incorrect
Check
Hide explanation
Preference
Male
Female
TOTAL
Prefers dogs
\[\blueD{36}\]
\[\blueD{20}\]
\[\blueE{56}\]
Prefers cats
\[10\]
\[26\]
\[36\]
No preference
\[2\]
\[6\]
\[8\]
TOTAL
\[48\]
\[52\]
\[100\]
There were \[\blueE{56}\] students in the sample who preferred dogs out of \[100\] total students.
Business discuss
Chapter 6 Solutions
Understandable Statistics: Concepts and Methods
Ch. 6.1 - Statistical Literacy Which, if any, of the curves...Ch. 6.1 - Statistical Literacy Look at the normal curve in...Ch. 6.1 - Prob. 3PCh. 6.1 - Critical Thinking Sketch a normal curve (a) with...Ch. 6.1 - Basic Computation: Empirical Rule What percentage...Ch. 6.1 - Basic Computation: Empirical Rule What percentage...Ch. 6.1 - Distribution: Heights of Coeds Assuming that the...Ch. 6.1 - Distribution: Rhode Island Red Chicks The...Ch. 6.1 - Archaeology: Tree Rings At Burnt Mesa Pueblo,...Ch. 6.1 - Vending Machine: Soft Drinks A vending machine...
Ch. 6.1 - Pain Management: Laser Therapy Effect of...Ch. 6.1 - Control Charts: Yellowstone National Park...Ch. 6.1 - Control Charts: Bank Loans Tri-County Bank is a...Ch. 6.1 - Control Charts: Motel Rooms The manager of Motel...Ch. 6.1 - Prob. 15PCh. 6.1 - Prob. 16PCh. 6.1 - Uniform Distribution: Measurement Errors...Ch. 6.1 - Prob. 18PCh. 6.1 - Prob. 19PCh. 6.1 - Prob. 20PCh. 6.2 - Statistical Literacy What does a standard score...Ch. 6.2 - Statistical Literacy Does a raw score less than...Ch. 6.2 - Prob. 3PCh. 6.2 - Prob. 4PCh. 6.2 - Basic Computation: z Score and Raw Score A normal...Ch. 6.2 - Basic Computation: z Score and Raw Score A normal...Ch. 6.2 - Prob. 7PCh. 6.2 - Prob. 8PCh. 6.2 - z Scores: First Aid Course The college physical...Ch. 6.2 - Prob. 10PCh. 6.2 - Prob. 11PCh. 6.2 - Normal Curve: Tree Rings Tree-ring dates were used...Ch. 6.2 - Basic Computation: Finding Areas Under the...Ch. 6.2 - Prob. 14PCh. 6.2 - Basic Computation: Finding Areas Under the...Ch. 6.2 - Prob. 16PCh. 6.2 - Prob. 17PCh. 6.2 - Prob. 18PCh. 6.2 - Prob. 19PCh. 6.2 - Basic Computation: Finding Areas Under the...Ch. 6.2 - Prob. 21PCh. 6.2 - Prob. 22PCh. 6.2 - Prob. 23PCh. 6.2 - Prob. 24PCh. 6.2 - Prob. 25PCh. 6.2 - Prob. 26PCh. 6.2 - Prob. 27PCh. 6.2 - Prob. 28PCh. 6.2 - Prob. 29PCh. 6.2 - Basic Computation: Finding Areas Under the...Ch. 6.2 - Prob. 31PCh. 6.2 - Prob. 32PCh. 6.2 - Basic Computation: Finding Probabilities In...Ch. 6.2 - Prob. 34PCh. 6.2 - Prob. 35PCh. 6.2 - Prob. 36PCh. 6.2 - Prob. 37PCh. 6.2 - Basic Computation: Finding Probabilities In...Ch. 6.2 - Prob. 39PCh. 6.2 - Prob. 40PCh. 6.2 - Prob. 41PCh. 6.2 - Prob. 42PCh. 6.2 - Basic Computation: Finding Probabilities In...Ch. 6.2 - Prob. 44PCh. 6.2 - Basic Computation: Finding Probabilities In...Ch. 6.2 - Prob. 46PCh. 6.2 - Prob. 47PCh. 6.2 - Basic Computation: Finding Probabilities In...Ch. 6.2 - Prob. 49PCh. 6.2 - Prob. 50PCh. 6.3 - Statistical Literacy Consider a normal...Ch. 6.3 - Statistical Literacy Suppose 5% of the area under...Ch. 6.3 - Prob. 3PCh. 6.3 - Critical Thinking: Normality Consider the...Ch. 6.3 - Basic Computation: Find Probabilities In Problems...Ch. 6.3 - Basic Computation: Find Probabilities In Problems...Ch. 6.3 - Basic Computation: Find Probabilities In Problems...Ch. 6.3 - Basic Computation: Find Probabilities In Problems...Ch. 6.3 - Basic Computation: Find Probabilities In Problems...Ch. 6.3 - Basic Computation: Find Probabilities In Problems...Ch. 6.3 - Basic Computation: Find Probabilities In Problems...Ch. 6.3 - Basic Computation: Find Probabilities In Problems...Ch. 6.3 - Basic Computation: Find Probabilities In Problems...Ch. 6.3 - Basic Computation: Find Probabilities In Problems...Ch. 6.3 - Basic Computation: Find z Values In Problems 1524,...Ch. 6.3 - Basic Computation: Find z Values In Problems 1524,...Ch. 6.3 - Basic Computation: Find z Values In Problems 1524,...Ch. 6.3 - Basic Computation: Find z Values In Problems 1524,...Ch. 6.3 - Basic Computation: Find z Values In Problems 1524,...Ch. 6.3 - Prob. 20PCh. 6.3 - Prob. 21PCh. 6.3 - Basic Computation: Find z Values In Problems 1524,...Ch. 6.3 - Prob. 23PCh. 6.3 - Prob. 24PCh. 6.3 - Prob. 25PCh. 6.3 - Prob. 26PCh. 6.3 - Archaeology: Hopi Village Thickness measurements...Ch. 6.3 - Law Enforcement: Police Response Time Police...Ch. 6.3 - Prob. 29PCh. 6.3 - Guarantee: Watches Accrotime is a manufacturer of...Ch. 6.3 - Expand Your Knowledge: Estimating the Standard...Ch. 6.3 - Estimating the Standard Deviation: Refrigerator...Ch. 6.3 - Prob. 33PCh. 6.3 - Prob. 34PCh. 6.3 - Insurance: Satellites A relay microchip in a...Ch. 6.3 - Convertion Center: Exhibition Show Attendance...Ch. 6.3 - Exhibition Shows: Inverse Normal Distribution Most...Ch. 6.3 - Budget: Maintenance The amount of money spent...Ch. 6.3 - Prob. 39PCh. 6.3 - Prob. 40PCh. 6.4 - Prob. 1PCh. 6.4 - Prob. 2PCh. 6.4 - Prob. 3PCh. 6.4 - Prob. 4PCh. 6.4 - Prob. 5PCh. 6.4 - Prob. 6PCh. 6.4 - Prob. 7PCh. 6.4 - Prob. 8PCh. 6.4 - Prob. 9PCh. 6.5 - Statistical Literacy What is the standard error of...Ch. 6.5 - Prob. 2PCh. 6.5 - Prob. 3PCh. 6.5 - Prob. 4PCh. 6.5 - Basic Computation: Central Limit Theorem Suppose x...Ch. 6.5 - Basic Computation: Central Limit Theorem Suppose x...Ch. 6.5 - Prob. 7PCh. 6.5 - Prob. 8PCh. 6.5 - Prob. 9PCh. 6.5 - Prob. 10PCh. 6.5 - Prob. 11PCh. 6.5 - Critical Thinking Suppose an x distribution has...Ch. 6.5 - Prob. 13PCh. 6.5 - Vital Statistics: Heights of Men The heights of...Ch. 6.5 - Prob. 15PCh. 6.5 - Medical: White Blood Cells Let x be a random...Ch. 6.5 - Wildlife: Deer Let x be a random variable that...Ch. 6.5 - Focus Problem: Impulse Buying Let x represent the...Ch. 6.5 - Finance: Templeton Funds Templeton World is a...Ch. 6.5 - Finance: European Growth Fund A European growth...Ch. 6.5 - Expand Your Knowledge: Totals Instead of Averages...Ch. 6.5 - Prob. 22PCh. 6.5 - Prob. 23PCh. 6.6 - Prob. 1PCh. 6.6 - Prob. 2PCh. 6.6 - Basic Computation: Normal Approximation to a...Ch. 6.6 - Basic Computation: Normal Approximation to a...Ch. 6.6 - Critical Thinking You need to compute the...Ch. 6.6 - Critical Thinking Consider a binomial experiment...Ch. 6.6 - In the following problems, check that it is...Ch. 6.6 - In the following problems, check that it is...Ch. 6.6 - Prob. 9PCh. 6.6 - Prob. 10PCh. 6.6 - Prob. 11PCh. 6.6 - Prob. 12PCh. 6.6 - Prob. 13PCh. 6.6 - In the following problems, check that it is...Ch. 6.6 - Prob. 15PCh. 6.6 - Prob. 17PCh. 6.6 - Prob. 18PCh. 6.6 - Prob. 19PCh. 6.6 - Basic Computation: p Distribution Suppose we have...Ch. 6.6 - Prob. 21PCh. 6 - Prob. 1CRPCh. 6 - Prob. 2CRPCh. 6 - Statistical Literacy Is a process in control if...Ch. 6 - Prob. 4CRPCh. 6 - Prob. 5CRPCh. 6 - Prob. 6CRPCh. 6 - Prob. 7CRPCh. 6 - Prob. 8CRPCh. 6 - Prob. 9CRPCh. 6 - Prob. 10CRPCh. 6 - Prob. 11CRPCh. 6 - Basic Computation: Probability Given that x is a...Ch. 6 - Prob. 13CRPCh. 6 - Prob. 14CRPCh. 6 - Prob. 15CRPCh. 6 - Prob. 16CRPCh. 6 - Prob. 17CRPCh. 6 - Prob. 18CRPCh. 6 - Prob. 19CRPCh. 6 - Prob. 20CRPCh. 6 - Prob. 21CRPCh. 6 - Prob. 22CRPCh. 6 - Prob. 23CRPCh. 6 - Prob. 24CRPCh. 6 - Prob. 25CRPCh. 6 - Prob. 26CRPCh. 6 - Break into small groups and discuss the following...Ch. 6 - Prob. 1LCCh. 6 - Prob. 2LCCh. 6 - Prob. 3LCCh. 6 - Prob. 4LCCh. 6 - Discuss each of the following topics in class or...Ch. 6 - Prob. 1UTCh. 6 - Prob. 1CURPCh. 6 - Prob. 2CURPCh. 6 - Prob. 3CURPCh. 6 - Prob. 4CURPCh. 6 - Prob. 5CURPCh. 6 - Prob. 6CURPCh. 6 - Prob. 7CURPCh. 6 - Prob. 8CURPCh. 6 - Prob. 9CURPCh. 6 - Prob. 10CURPCh. 6 - Prob. 11CURPCh. 6 - Prob. 12CURPCh. 6 - Prob. 13CURPCh. 6 - Prob. 14CURPCh. 6 - Prob. 15CURP
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
- You have been hired as an intern to run analyses on the data and report the results back to Sarah; the five questions that Sarah needs you to address are given below. Does there appear to be a positive or negative relationship between price and screen size? Use a scatter plot to examine the relationship. Determine and interpret the correlation coefficient between the two variables. In your interpretation, discuss the direction of the relationship (positive, negative, or zero relationship). Also discuss the strength of the relationship. Estimate the relationship between screen size and price using a simple linear regression model and interpret the estimated coefficients. (In your interpretation, tell the dollar amount by which price will change for each unit of increase in screen size). Include the manufacturer dummy variable (Samsung=1, 0 otherwise) and estimate the relationship between screen size, price and manufacturer dummy as a multiple linear regression model. Interpret the…arrow_forwardDoes there appear to be a positive or negative relationship between price and screen size? Use a scatter plot to examine the relationship. How to take snapshots: if you use a MacBook, press Command+ Shift+4 to take snapshots. If you are using Windows, use the Snipping Tool to take snapshots. Question 1: Determine and interpret the correlation coefficient between the two variables. In your interpretation, discuss the direction of the relationship (positive, negative, or zero relationship). Also discuss the strength of the relationship. Value of correlation coefficient: Direction of the relationship (positive, negative, or zero relationship): Strength of the relationship (strong/moderate/weak): Question 2: Estimate the relationship between screen size and price using a simple linear regression model and interpret the estimated coefficients. In your interpretation, tell the dollar amount by which price will change for each unit of increase in screen size. (The answer for the…arrow_forwardIn 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.)arrow_forward
- Problem 4. Margrabe formula and the Greeks (20 pts) In the homework, we determined the Margrabe formula for the price of an option allowing you to swap an x-stock for a y-stock at time T. For stocks with initial values xo, yo, common volatility σ and correlation p, the formula was given by Fo=yo (d+)-x0Þ(d_), where In (±² Ꭲ d+ õ√T and σ = σ√√√2(1 - p). дго (a) We want to determine a "Greek" for ỡ on the option: find a formula for θα (b) Is дго θα positive or negative? (c) We consider a situation in which the correlation p between the two stocks increases: what can you say about the price Fo? (d) Assume that yo< xo and p = 1. What is the price of the option?arrow_forwardWe consider a 4-dimensional stock price model given (under P) by dẴ₁ = µ· Xt dt + йt · ΣdŴt where (W) is an n-dimensional Brownian motion, π = (0.02, 0.01, -0.02, 0.05), 0.2 0 0 0 0.3 0.4 0 0 Σ= -0.1 -4a За 0 0.2 0.4 -0.1 0.2) and a E R. We assume that ☑0 = (1, 1, 1, 1) and that the interest rate on the market is r = 0.02. (a) Give a condition on a that would make stock #3 be the one with largest volatility. (b) Find the diversification coefficient for this portfolio as a function of a. (c) Determine the maximum diversification coefficient d that you could reach by varying the value of a? 2arrow_forwardQuestion 1. Your manager asks you to explain why the Black-Scholes model may be inappro- priate for pricing options in practice. Give one reason that would substantiate this claim? Question 2. We consider stock #1 and stock #2 in the model of Problem 2. Your manager asks you to pick only one of them to invest in based on the model provided. Which one do you choose and why ? Question 3. Let (St) to be an asset modeled by the Black-Scholes SDE. Let Ft be the price at time t of a European put with maturity T and strike price K. Then, the discounted option price process (ert Ft) t20 is a martingale. True or False? (Explain your answer.) Question 4. You are considering pricing an American put option using a Black-Scholes model for the underlying stock. An explicit formula for the price doesn't exist. In just a few words (no more than 2 sentences), explain how you would proceed to price it. Question 5. We model a short rate with a Ho-Lee model drt = ln(1+t) dt +2dWt. Then the interest rate…arrow_forward
- 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.)arrow_forwardThe managing director of a consulting group has the accompanying monthly data on total overhead costs and professional labor hours to bill to clients. Complete parts a through c. Question content area bottom Part 1 a. Develop a simple linear regression model between billable hours and overhead costs. Overhead Costsequals=212495.2212495.2plus+left parenthesis 42.4857 right parenthesis42.485742.4857times×Billable Hours (Round the constant to one decimal place as needed. Round the coefficient to four decimal places as needed. Do not include the $ symbol in your answers.) Part 2 b. Interpret the coefficients of your regression model. Specifically, what does the fixed component of the model mean to the consulting firm? Interpret the fixed term, b 0b0, if appropriate. Choose the correct answer below. A. The value of b 0b0 is the predicted billable hours for an overhead cost of 0 dollars. B. It is not appropriate to interpret b 0b0, because its value…arrow_forwardUsing the accompanying Home Market Value data and associated regression line, Market ValueMarket Valueequals=$28,416+$37.066×Square Feet, compute the errors associated with each observation using the formula e Subscript ieiequals=Upper Y Subscript iYiminus−ModifyingAbove Upper Y with caret Subscript iYi and construct a frequency distribution and histogram. LOADING... Click the icon to view the Home Market Value data. Question content area bottom Part 1 Construct a frequency distribution of the errors, e Subscript iei. (Type whole numbers.) Error Frequency minus−15 comma 00015,000less than< e Subscript iei less than or equals≤minus−10 comma 00010,000 0 minus−10 comma 00010,000less than< e Subscript iei less than or equals≤minus−50005000 5 minus−50005000less than< e Subscript iei less than or equals≤0 21 0less than< e Subscript iei less than or equals≤50005000 9…arrow_forward
- The managing director of a consulting group has the accompanying monthly data on total overhead costs and professional labor hours to bill to clients. Complete parts a through c Overhead Costs Billable Hours345000 3000385000 4000410000 5000462000 6000530000 7000545000 8000arrow_forwardUsing the accompanying Home Market Value data and associated regression line, Market ValueMarket Valueequals=$28,416plus+$37.066×Square Feet, compute the errors associated with each observation using the formula e Subscript ieiequals=Upper Y Subscript iYiminus−ModifyingAbove Upper Y with caret Subscript iYi and construct a frequency distribution and histogram. Square Feet Market Value1813 911001916 1043001842 934001814 909001836 1020002030 1085001731 877001852 960001793 893001665 884001852 1009001619 967001690 876002370 1139002373 1131001666 875002122 1161001619 946001729 863001667 871001522 833001484 798001589 814001600 871001484 825001483 787001522 877001703 942001485 820001468 881001519 882001518 885001483 765001522 844001668 909001587 810001782 912001483 812001519 1007001522 872001684 966001581 86200arrow_forwarda. Find the value of A.b. Find pX(x) and py(y).c. Find pX|y(x|y) and py|X(y|x)d. Are x and y independent? Why or why not?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Big Ideas Math A Bridge To Success Algebra 1: Stu...AlgebraISBN:9781680331141Author:HOUGHTON MIFFLIN HARCOURTPublisher:Houghton Mifflin Harcourt
Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw Hill
College Algebra (MindTap Course List)AlgebraISBN:9781305652231Author:R. David Gustafson, Jeff HughesPublisher:Cengage Learning
Holt Mcdougal Larson Pre-algebra: Student Edition...AlgebraISBN:9780547587776Author:HOLT MCDOUGALPublisher:HOLT MCDOUGAL
Big Ideas Math A Bridge To Success Algebra 1: Stu...
Algebra
ISBN:9781680331141
Author:HOUGHTON MIFFLIN HARCOURT
Publisher:Houghton Mifflin Harcourt
Glencoe Algebra 1, Student Edition, 9780079039897...
Algebra
ISBN:9780079039897
Author:Carter
Publisher:McGraw Hill
College Algebra (MindTap Course List)
Algebra
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:Cengage Learning
Holt Mcdougal Larson Pre-algebra: Student Edition...
Algebra
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
Type I and II Errors, Power, Effect Size, Significance and Power Analysis in Quantitative Research; Author: NurseKillam;https://www.youtube.com/watch?v=OWn3Ko1WYTA;License: Standard YouTube License, CC-BY