For the following function

x                 1                      1                   2                      4

y                  3                      4                   5                      6          

f_XY(x,y)      3/7                    1/7                2/7                   1/7    

1. Determine the covariance and the correlation

b) Are X and Y independent? Explain why or why not.

Solve the follwing game theory matrix,

Find the optimal strategies for both players

Use the Manufacturing database from “Excel Databases.xls” on Blackboard. Use Excel to develop a multiple regression model to predict Cost of Materials by Number of Employees, New Capital Expenditures, Value Added by Manufacture, and End-of-Year Inventories.

Locate the observed value that is in Industrial Group 12 and has 7 employees. Based on the model and the multiple regression output, what is the corresponding residual of this observation? Write your answer as a number, round to 2 decimal places.

**Answer should be 542.83, I just need to know how**

Use Excel to develop a multiple regression model to predict Cost of Materials by Number of Employees, New Capital Expenditures, Value Added by Manufacture, and End-of-Year Inventories.

Locate the observed value that is in Industrial Group 12 and has 7 employees. Based on the model and the multiple regression output, what is the corresponding residual of this observation? Write your answer as a number, round to 2 decimal places.

Consider the following time series:

1. If a taxpayer has gains and losses from an activity, are they better off classifying the activity as a hobby or as a business? Explain why.

Mr. D works full-time as a systems analyst for a consulting firm. In addition, he sells plants that he raises himself in a greenhouse attached to his residence. During the past 5 years, the results from raising and selling the plants have been as follows: Year Net Profit (Loss) from Scenario 1:

2. Please create a scenario (Scenario 2) where the cumulative profits in years 1-4 are still $300 but the taxpayer would be in a better position regarding year 5 losses.

3. Comment on your answer to 2 above. Why is Scenario 2 better for the taxpayer? You may also show your erudition by citing, referencing, and attaching additional sources

Suppose that Danielle, an avid gardener, would like to determine whether singing to her plants could help them grow taller.

She randomly assigned four jade plants to one of two groups, singing or no singing, and used the total height for each plant (in inches) after six weeks to determine plant growth.

There are six possible ways the four plants can be assigned to the two groups, with both groups having size ?=2.

In ascending order, the mean differences are: −0.35, −0.25, −0.05, 0.05, 0.25, and 0.35.

With a null hypothesis of no difference, the two‑sided alternative hypothesis is that the mean plant height is different for the two groups, singing and no singing.

Carry out a permutation test of the hypotheses. Compute the ?-value. Round your answer to three decimal places.

?-value =

1. For each matrix A below compute the characteristic polynomial χA(t) and do a direct matrix computation to verify that χA(A) = 0.

(4 3

-1 1)    (2 1 -1 0 3 0 0 -1 2) (3*3 matrix)

2.  For each 3*3 matrix and each eigenvalue below construct a basis for the eigenspace Eλ.

A= (9 42 -30 -4 -25 20 -4 -28 23),λ = 1,3
A= (2 -27 18 0 -7 6 0 -9 8) , λ = −1,2

3. Construct a 2×2 matrix with eigenvectors(4 3) and (−3 −2) with eigen-values 2 and −3, respectively.

4. Let A be the 6*6 diagonal matrix below. For each eigenvalue, compute the multiplicity of λ as a root of the characteristic polynomial and compare it to the dimension of the eigenspace Eλ.

(x 0 0 0 0 0 0 x 0 0 0 0 0 0 y 0 0 0 0 0 0 x 0 0 0 0 0 0 z 0 0 0 0 0 0 x)

5.   Let A be an 3*3 upper triangular matrix with all diagonal elements equal, such as (3 4 -2 0 3 12 0 0 3)

Prove that A is diagonalizable if and only if A is a scalar times the identity matrix.

Assume you have $10mio in investor capital. Show the growth of this capital since the start of 2018 assuming you were continuously engaging in a simple arbitrage strategy where you buy the low-priced asset and sell the high-priced asset. Be sure incorporate all the real-world frictions that would arise if you were implementing the arbitrage such as interest rates, storage, insurance, transportation costs, natural disasters, theft, fraud, etc.

Formula 1: F₀=S₀e^(r-q)

where r represents the interest rate, q represents the cash flow yield earned from holding the asset (i.e. dividends), and T is time in years

Formula 2: F₀=S₀e^(r-rb)T

where rb represents the interest rate of the base currency as quoted and r represents the interest rate of the second currency, all continuous compounding.

formula 3: F₀=S₀e^(r+u-y)T

where r represents the interest rate,u represents the storage and/or insurance costs expressed in constant proportion, and y represents the convenience yield

NOTE: THERE IS NO DATA OF R, RB, U, Q AND Y and all are based on assumptions.

1. Describe the forwards/futures pricing model that is appropriate for the asset you select. This could be formulas 1, 2, or 3 above or some variation of these. Hint: Since this market is new, there is no model or approach that is best. I am looking for your intuition.

2. Clearly outline the arbitrage strategy, and show the payoffs for one sample trade. State how large your trades will be, being mindful of the practical limit (i.e. you only have $10mio in capital).

3. Track the growth of your $10mio in the capital since the start of 2018 assuming you were continuously engaging in the strategy. Show your returns by month and for the entire period ending in June.

In a study of credibility or believability of television news versus printed news, a sample of 35 adults was selected from residents of an urban area in the Midwest. Each person was asked to express his or her opinion regarding the statement “Television news is more trustworthy than corresponding news reported in the printed media.” Responses were measured on a five-point scale from “strongly agree” (1) to “Strongly Disagree” (5), and were reported as follows:

4 4 3 5 5 3 5 2 4 1 4 1 3 4 3 4 5 5 5 5 5 4 4 3 2 5 1 5 4 5 4 2 3 4 4

1. Construct a frequency distribution table that corresponds to this data and draw a frequency graph of the distribution
2. Calculate the mean, median, mode, range, variance, and standard deviation (Show ALL work for Standard Deviation legibly).

Thank you!