+1-415-315-9853

info@mywordsolution.com

## Statistics

1) Stock Returns: Consider monthly stock in the pharmaceutical manufacturer in decades after WW2.  Average monthly return was 1.4%, with the standard deviation of 6.0%.

Without additional information about returns, what suppositions do you want to make to be able to play “what if” games, such as those in the b., c. and d. below?  Can you prepare some reservations about suppositions ?

Making the suppositions of a., what fraction of months did stock drop 10% or more?  Express your result in the intuitive form such as “one in 10 months”.

What fraction of months did same stock increase by at least 10%?  How does this frequency compare with the frequency of dropping by at least 10%?  Is this due to the mean or due to the sd of the returns?

What is the chance that the stock will fall by more than 15% next month?  What additional suppositions are you making when answering this problem?

2) ABC Company wishes to study the number of credit applications received per day for the last 300 days. The information is reported on the next page.

Number of Credit Applications     Frequency (Number of Days)
0                                                        50
1                                                        77
2                                                        81
3                                                        48
4                                                        31
5 or more                                               13

To interpret, there were 50 days on which no credit applications were received, 77 days on which only one application was received, and so on. Will it be reasonable to conclude that population distribution is Poisson with the mean of 2.0? Use.05 significance level. Hint: To determine the expected frequencies use Poisson distribution with the mean of 2.0. Determine the probability of exactly one success given Poisson distribution with a mean of 2.0. Multiply this probability by 300 to determine the expected frequency for the number of days in which there was exactly one application. Find out the expected frequency for the other days in a similar manner.

Statistics and Probability, Statistics

• Category:- Statistics and Probability
• Reference No.:- M910352

Have any Question?

## Related Questions in Statistics and Probability

### Suppose iq scores were obtained from randomly selected

Suppose IQ scores were obtained from randomly selected siblings. For 20 such pairs of people, the linear correlation coefficient is 0.871 and the equation of the regression line is Modifying Above y with caret equals 18. ...

### The average number of cars per hour arriving at a toll

The average number of cars per hour arriving at a toll booth is 57 while the standard deviation is 15. (a) Use Markov's inequality to find an upper bound on the probability of having more than 200 cars arrive in an hour. ...

### How did the federal government shape the lives of us

How did the federal government shape the lives of U.S. citizens in the period from 1865 through the time of industrialization and urbanization?

### Suppose we wish to estimate the probabilitypa of some event

Suppose we wish to estimate the probability,P A , of some event, A. We do so by repeating an experiment times and observing whether or not the event occurs during each experiment. In particular, let (a) Assuming n is lar ...

### According to figures released by the new york city

According to figures released by the New York City government, smoking among New York City teenagers is on a decline, continuing a trend that began more than a decade ago (The New York Times, January 2, 2008). According ...

### Statistics for decision making assignment-statistical

Statistics for Decision Making Assignment- Statistical Concepts: Probability Binomial Probability Distribution Calculating Binomial Probabilities - Open a new Excel worksheet. 1. Open spreadsheet 2. In cell A1 type "succ ...

### Find an expression for the even moments of a rayleigh

Find an expression for the even moments of a Rayleigh random variable. That is, find  for any positive integer   if the random variable, Y, has a PDF given by

### Suppose a point in three-dimensional cartesian space x y

Suppose a point in three-dimensional Cartesian space, (X, Y, Z)  is equally likely to fall anywhere on the surface of the hemisphere defined by X 2 + Y 2 + Z 2 = 1 and Z>=0.  (a) Find the PDF Of  Z, f Z (z).  (b) Find th ...

### Letnbspwhere a t is a wide sense stationary random process

Let  where A (t) is a wide sense stationary random process independent of  be a random variable distributed uniformly over   Define a related process   are stationary in the wide sense but that the cross-correlation   be ...

### Question 1 if a study has 3 groups of 25 subjects each the

Question 1: If a study has 3 groups of 25 subjects each, the degrees of freedom are 2 and 24. a. True. b. False. Question 2: It is possible for all paired means to be statistically significant. a. True.  b. False. Questi ...

• 13,132 Experts

## Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

### A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

### What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

### Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

### Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

### Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate