experience is representative of future performance‚ which firm should receive the business? Substantiate your answer with appropriate calculations. (10) (b) The length of life of 220 incandescent 60-watt lamps was obtained and yielded the frequency distribution shown in the table given below: Class Limit Frequency 500-599 3 600-699 7 700-799 14 800-899 28 900-999 64 1000-1099 57 1100-1199 23 1200-1299
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Scholes differential equations stated. where dz is a standard Brownian motion‚ defined by dz = epsilon * sqrt(dt) where epsilon is a standard normal random variable; dS is the change in stock price‚ r is the risk-free interest rate‚ q is the dividend of the stock‚ sigma the volatility of the stock. The model implies that dS/S follows a normal distribution with mean Having shown the solutions‚ this document shows the development of the VBA user defined functions required for implementation of
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use the calculations you made for question 7: of Homework 3 to support your judgment concerning the normality of the distribution of the data shown in question 2: (also of Homework 3). Give reasons for your answer which might include calculations and/or graphs. Answer: Reasoning/Work: 3: Using normal probability paper‚ determine (judgment) the normality of the distribution of the following data: 2.566‚ 2.565‚ 2.545‚ 2.551‚ 2.550‚ 2.564‚ 2.542‚ 2.561‚ 2.532‚ 2.565‚ 2.569‚ 2.552‚ 2.558‚ 2.562
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standard deviation of the small company returns and large company common returns. 5. The table below provides a probability distribution for the returns on stocks A and B State Probability Return On Stock A Return OnStock B 1 20% 5% 50% 2 30% 10% 30% 3 30% 15% 10% 4 20% 20% -10% a. Given a probability distribution of returns‚ calculate the expected return‚ variance‚ standard deviation of Stock A and Stock B. b. The weighted portfolio of
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Q1 In a test given to 500 students‚ the average marks was 56 and the standard deviation was 20. Find (i) the number of students exceeding a score of 60. (ii) the number of students having marks between 50 and 70. (iii) the value of marks exceeded by the top 100 students. Answer-------- (i) number of students exceeding a score of 60=210 (ii) The number of students having marks between 50 and 70=188 (iii) The value of marks exceeded by the top 100 students=73 Q2. Following
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1. INTRODUCTION In 1992‚ Arundel Partners was looking into the idea of purchasing the sequel rights associated with films produced by one or more major movie studios. Movie rights were to be purchased prior to films being made. Arundel wanted to determine if this innovative business strategy is viable by estimating the value of the sequel rights. 2. OBJECTIVE Our report aims to investigate the viability of the implementation of Arundel’s strategy in purchasing sequel rights to produce
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bar = 14.87‚ mu = 14.8‚ and s = 0.550329055. The next step in solving the problem is to construct a 95% confidence interval for the average amount of the company’s 16-ounce bottles. The confidence interval was constructed by drawing a normal distribution with c = 95%‚ a = 0.050‚ and Zc = 0.025. The Zc value was entered into the Z◘ (z box) function in the Aleks calculator that resulted in a Z score of +1.96 and -1.96. We calculate the standard error (SE) by dividing the s by the Square root of
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testing conclusion. The p-value for the test is: Question 2 Note: the statistical data is provide in � 5. -one machine -two populations -no other influences mentioned -independently chosen Conclusion: Independent sample Table Standard Normal Distribution (inside the cover of the book) z = 1.33 p = 2x (0.5- 0.4082) = 0.1836 This is a likely value so: not reject H0. Recommendation: Take the new balls in production. 5. Statistical summary Question 3: Thirdly a descriptive statistical summery
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deviation equal to 4. A. Describe the shape of the sampling distribution of the sample mean x. Do we need to make any assumptions about the shape of the population? Why or why not? ------------------------------------------------- This would be a normally distributed bell shaped curve. We do not need to make any assumptions because the sample size is at least 30. B. Find the mean and the standard deviation of the sampling distribution of the sample mean x. a. µx=µ +ox=σx=σn µ=20 464=48=
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Solutions Manual to accompany Quantitative Methods An Introduction for Business Management Provisional version of May 23‚ 2011 Paolo Brandimarte A Wiley-Interscience Publication JOHN WILEY & SONS‚ INC. New York / Chichester / Weinheim / Brisbane / Singapore / Toronto Contents Preface 1 Quantitative Methods: Should We Bother? 1.1 Solutions 1.2 Computational supplements 1.2.1 Optimal mix problem Calculus 2.1 Solutions Linear Algebra 3.1 Solutions Descriptive Statistics: On the Way
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