a) Your initial belief about stock A is that its future price cannot be predicted on the basis of existing public information. An insider comes forward claiming that the price will fall. You know the insider is not totally reliable and tells the truth with probability p=0.3. Use Bayes’ theorem to calculate the posterior probability that the stock price will fall, based on the insider’s evidence.A second insider, equally unreliable, comes forward and also claims that the price will fall. Assuming that the insiders are not colluding, what is your posterior probability of a price fall?  Based on your above answers, does the probability of future stock price depend on unreliable insiders? Would you expect this outcome? Explain your argument.

A study is conducted regarding shatterproof glass used in automobiles. Twenty-six glass panes are coated with an anti-shattering film. Then a 5-pound metal ball is fired at 70mph at each pane. Five of the panes shatter. We wish to determine whether, in the population of all such panes, the probability the glass shatters under these conditions is different from π= 0.2

(a) State the appropriate null and alternative hypotheses.

(b) Check the conditions for trusting the conclusion of the test, and calculate the observed value of an appropriate test statistic.

(c) Calculate the rejection region and draw a conclusion, given the significance level α= 0.05.

(d) Calculate the p-value.

(e) Compute the power of the test if the trueπwas in fact 0.3.

You invest 27,000 in a corporate bond selling for $900 per $1000. Over the coming year, the bond will pay interest of $75 per $1000 of par value. The price of the bond at year’s end will depend of the level of interest rate prevailing at that time. You construct the following scenario analysis:

Your alternative investment is a T-bill that yields a certain rate of 5%. Calculate the HPR for each scenario, the expected rate of return, and the risk premium on your investment.   What is the expected year-end dollar value of your investment? (9 Points)

Use the above information from the tables to work out the following missing entries, and then calculate the company’s return on equity. Note: Turnover and the average collection period are calculated using start-of-year, not average, values. (Enter your answers in millions. Round intermediate calculations and final answers to 2 decimal places.)

Use the above information from the tables to work out the following missing entries, and then calculate the company’s return on equity. Note: Turnover and the average collection period are calculated using start-of-year, not average, values. (Enter your answers in millions. Round intermediate calculations and final answers to 2 decimal places.)

Questions marks are in the places that I do not know the answers to

9.

a. If the unit of f(x) is gallons and the unit of x are in miles then the unit of f’(x) = ____________

b. If f is an increasing function at x = 4.5, then f ‘( 4.5) <0 True or False?

3. If g’ (4) = 0 and g “ (4) >0 , then g(4) is a ______________ value of the function.

4. If f(x) is continuous and f(2) = f(6) = 7 , then f’(c) =0 when 2<c<6. True or False?

5. If c(T) is the temperature (⁰F) of my coffee T minutes after I pour the cup, then explain in a sentence what c ‘(10) =-5 means? Don’t forget to include the unit.

A random sample of 48 traditional, mixed-use, pedestrian-friendly neighborhoods and 54 postwar, auto-oriented neighborhoods, all with comparable household income levels, revealed the following. The traditional neighborhoods averaged 14.6 daily vehicle miles traveled (VMT) per adult household member, with a standard deviation (uncorrected for bias) of 6.2 VMT. The auto-oriented neighborhoods averaged 18.9 VMT per adult household member and an (uncorrected) standard deviation of 7.3 VMT. Using the five-step hypothesis testing process, test the hypothesis of New Urbanists, that traditional neighborhoods reduce automobile usage and dependency at the α = .05 level.   

*****I'm using excel spreadsheet so I'm stuck on how to find a least square straight line after linearizing the relationship. I do not have mini lab. I'm using excel.. The following are the average distances of the planets in the solar system from the sun.

Planet No Planet Distance (millions of miles)

1 Pluto 47.163

2 Venus 67.235

3 Earth 92.960

4 Mars 141.61

5 Asteroids 313.00

6 Jupiter 483.60

7 Saturn 886.70

8 Uranus 1783.0

9 Neptune 2794.0

10 Pluto 2794.0

Find a least squares straight line after linearizing the relationship.

Dylan Jones kept careful records of the fuel efficiency of his new car. After the first eleven times he filled up the tank, he found the mean was 27.3 miles per gallon (mpg) with a sample standard deviation of 1.3 mpg. Compute the 95% confidence interval for his mpg. (Use t Distribution Table.) (Round your answers to 3 decimal places.) How many times should he fill his gas tank to obtain a margin of error below 0.15 mpg? (Use z Distribution Table.) (Round your answer to the next whole number.)