assets and a standard deviation of 1.5% of assets. The bank’s equity is 4% of the assets. What is the probability that the bank will have a positive equity at the end of the year? 2. A portfolio consists of 1‚000 shares of HSBC stock‚ and 2‚000 of Hang Seng stock. Current prices of HSBC and Hang Seng are 83 and 110 HKD respectively. Suppose that the percent1 age changes of HSBC and Hang Seng for the next ten days are normally distributed‚ with means 3% and 2%‚ and standard deviations 5% and 7% respectively
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00 7.99 8.03 8.01 Construct a 95% confidence interval to estimate the true average length of the screws for the whole consignment. From a second large consignment‚ another 16 screws are selected at random and their mean and standard deviation found to be 7.992 mm and 0.01mm. Can you conclude at 5% level of significance that the first batch of screws has greater mean than the second batch? 2. A sample of 8 independent observations provides the following: 3.6 3.9
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ISOM 111 L11‚ Fall 2010 1 Homework 1 Solutions I. An insurance agency is examining the dollar amount of claims from clients who have homeowners insurance. For the 900 people who filed claims‚ the five-number summary of the amount is: ($8800‚ $8850‚ $8900‚ $9100‚ $9940). (a) Would the histogram displaying the data for the 900 claims be nearly bell-shaped? If so‚ explain how the summary indicates this. If not‚ determine if the data is skewed left or skewed right‚ and explain how the summary
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Association (NCAA) reported that the mean number of hours spent per week coaching and recruiting by college football assistant coaches during the season was 70. A random sample of 50 assistant coaches showed the sample mean to be 68.6 hours‚ with a standard deviation of 8.2 hours. A. Using the sample data‚ construct a 99% confidence interval for the population mean. The confidence interval is as follows: 68.6- 2.58*8.2/ã50‚ 686+ 2.58*8.2/ã50 CI(65.6-71.5) B. Does the 99% confidence interval
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of the following statements about a normal distribution is true? (A) The value of µ must always be positive. (B) The value of σ must always be positive. (C) The shape of a normal distribution depends on the value of µ. (D) The possible values of a standard normal variable range from −3.49 to 3.49. (E) The area under a normal curve depends on the value of σ. 3. A variable X follows a uniform distribution‚ as shown below: The distribution of X has an interquartile range equal to 4 (since the middle
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International Islamic University Malaysia Graduate School of Management ECON 6130 Quantitative Decision Making Chapter 10 One-Sample Tests of Hypothesis Dr. Intan Zanariah Zakaria GOALS • Define a hypothesis and hypothesis testing. • Describe the five-step hypothesis-testing procedure. • Distinguish between a one-tailed and a two-tailed test of hypothesis. • Conduct a test of hypothesis about a population mean. • Conduct a test of hypothesis about a population proportion. • Define
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Chapter 3 Statistical Summary This topic covers: The concept and measures of central tendency for ungrouped and grouped data. The concept and measures of dispersion for ungrouped and grouped data. Introduction When we look at a distribution of data‚ we should consider three characteristics: Shape (chapters 2 and 4) Center / Location (central tendency measurement) Spread (dispersion measurement) With these characteristics‚ we can numerically describe the main features of a data set
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IS PHOTOSYNTHESIS WAVELEGNTH DEPENDENT? THE EFFECT of different COLOR FILTERS ON The rate of photosynthesis in english ivy leaves author: Cherylle chapman partners: sharif alston‚ ALEX SAFAVOV & EDuardo vie (Group 3) OBSERVATIONS & HYPOTHESIS In the lab‚ we observed green plant leaves convert light energy into chemical energy by using photosynthesis. The species of green plant leaves that were used in this experiment were Hedera helix‚ commonly known as English Ivy. These plant leaves have both
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| | | |[v]. |The tighter the probability distribution of its expected future returns‚ the greater the risk of a given investment as measured by | | |its standard deviation. | | |
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determined from historical records that demand for sand during leadtime averages 50 tons. In addition‚ suppose the manager determined that the demand during leadtime could be described by a normal distribution that has a mean of 50 tons and a standard deviation of 5 tons. Answer the following questions‚ assuming that the manager is willing to accept a stockout risk of no more than 3 percent: a) What value of z is appropriate? b) How much safety stock should be held? c) What reorder point should
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