Top of Form Grading Summary These are the automatically computed results of your exam. Grades for essay questions‚ and comments from your instructor‚ are in the "Details" section below. Date Taken: 6/11/2012 Time Spent: 01 min ‚ 13 secs Points Received: 21 / 60 (35%) Question Type: # Of Questions: # Correct: Multiple Choice 13 9 Short 5 N/A Grade Details Page: 1 2 1. Question : (TCO 11) Define point estimate. Student Answer: Approximation of a single quantity or a single numerical
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Monte Carlo Simulation in Finance for Calculating European Options Value 1. Introduction An option is a financial instrument whose value depends on a value of underlying security. Options trade started in 1973 at the Chicago Board Options Exchange (Hull‚ Fundamentals of futures and options markets 2008). Nowadays‚ options have become a crucial tool in finance; they have become valuable both for financial institutions and investors. Options are attractive to investors since they have great effect
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1. STAT10T 7.2.1-2 (Points: 5.0) Solve the problem. Find the critical value zα/2 that corresponds to a degree of confidence of 91%. a. 1.645 b. 1.75 c. 1.34 d. 1.70 2. STAT10T 7.2.3-2 (Points: 5.0) Solve the problem. The following confidence interval is obtained for a population proportion‚ p: 0.817 < p < 0.855 Use these confidence interval limits to find the point estimate‚ . a. 0.833 b. 0.817 c. 0.839 d. 0.836 3. STAT10T 7.2.4-3 (Points: 5
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ANOVA and the Krusla-Wallis Test (Nonparametric) were used in the exercise. The ANOVA was used for multiple studies and the population is assumed to be a normal distribution. Also‚ it can be used to test for significant differences between means. On the other hand‚ the nonparametric test makes no assumption about the type of distribution. I made a few mistakes because I had chosen the wrong test and failed to reject the null hypothesis. I misread the results and didn’t notice the hypothesis
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or comparison purposes we also ran a triangular distribution to compensate for the lack of symmetry around the expected mean‚ but the results were broadly similar so we will discuss the results based on the truncated normal distribution. Results: Original Estimate The average total cost of the original over booking settings (5% and 20% respectively‚ shown in red below) is £9‚154. The reason this is higher than Jane’s estimate is that hers was only a single average
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for three numbers of standard deviations: 1σ‚ 2σ‚ and 3σ. • The empirical rule applies only when data are known to be approximately normally distributed. What do researchers use when data are not normally distributed or when the-shape of the distribution is unknown? Chebyshev’s theorem applies to all distribu¬tions regardless
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The narrower the range of the confidence interval the more accurate the estimate will be. 1b The central limit theorem‚ ‘whatever the distribution of the population‚ the mean of a large sample has an (approximate) normal distribution’. (Swift and Pitt p 498). The calculation of the confidence interval is therefore based on a standardised normal distribution with mean 0 and variance 1. Each sample mean is a single observation of a random variable designated as x . ¯ The mean value of the sample
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Business Statistics‚ 9e (Groebner/Shannon/Fry) Chapter 10 Estimation and Hypothesis Testing for Two Population Parameters 1) The Cranston Hardware Company is interested in estimating the difference in the mean purchase for men customers versus women customers. It wishes to estimate this difference using a 95 percent confidence level. If the sample size is n = 10 from each population‚ the samples are independent‚ and sample standard deviations are used‚ and the variances are assumed equal‚ then
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Part II. Additional Review Questions 1. Which of the following statements is correct? a) The range is a measure of central tendency. b) The median is a measure of dispersion. c) For a symmetric distribution‚ the mean is equal to the median. d) For a skewed distribution‚ the variance is a negative number. e) The variance is a measure of central tendency. 2. After a test‚ John found out that she scored in the 80th percentile. This means a) John scored as high or higher
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1 Objectives of the Course • • • • To provide a formal quantitative approach to problem solving To give an intuition for managerial situations where a quantitative approach is appropriate To introduce some widely used quantitative models To introduce software for solving such models. 2 Must-Read Article Inventory • • • • “Decision trees”‚ Robin Greenwood (HBR‚ March 2006) “Note on Linear Programming”‚ Jonathan Eckstein (HBR‚ November 1992) “Sampling and Statistical Inference”‚ Arthur
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