Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Statistics and Probability Expert

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

You are purchasing a home for 220000 the down payment is 30

You are purchasing a home for $220,000. The down payment is 30% and the balance will be financed with a 20- year mortgage at 9% and 2 discount points. You put down a deposit of $5,000 (applied to the down payment) when t ...

1 the waiting time t between successive occurrences of an

1. The waiting time T between successive occurrences of an event E in a discrete time renewal process has the probability distribution P(T =1) = 0.7, P(T = 2) = 0.3. (iii) If an observer arrives after the renewal process ...

1 what is the relationship between confounding and internal

1. What is the relationship between confounding and internal validity? 2. What are experimenter expectancy effects, and how do researchers minimize them? 3. Should demand characteristics be eliminated or strengthened in ...

A prospective purchaser wishes to estimate the mean dollar

A prospective purchaser wishes to estimate the mean dollar amount of sales per customer at a toy store located in an airport terminal. Based on data from other similar airports, the standard deviation of such sales is ab ...

Thirty percent of the time a sale at food shoppe is paid

Thirty percent of the time, a sale at Food Shoppe is paid using a store-issued credit card. A sample of 18 Food Shoppe sales is obtained. Let X represent the number of sales paid for using the store-issued credit card. W ...

What is the difference between simple linear and multiple

What is the difference between simple linear and multiple regressions? Give an example of a situation where linear regression might be useful? Give an example of a situation where multiple regression might be useful?

In a pulse rate research a simple random sample of 120 men

In a pulse rate research, a simple random sample of 120 men results in a mean of 80 beats per minute, and a standard deviation of 11 beats per minute. Based on the sample results, the researcher concludes that the pulse ...

1 explain how you would use a manipulation check to

1. Explain how you would use a manipulation check to determine whether you successfully manipulated room temperature in a study of temperature and aggression. 2. Distinguish between an independent variable and a subject ...

If the slope of a straight line is 23 and correlation

If the slope of a straight line is 2.3 and correlation coefficient is 0.777, calculate coefficient of determination.

Purpose of the studythis current research study is a

Purpose of the Study This current research study is a quantitative study. The aim of this research study is to investigate the levels of self-efficacy and to determine whether there is a relationship in quality of life a ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

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.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro