In a study, researchers wanted to measure the effect of alcohol on the hippocampal region, the portion of the brain responsible for long term memory storage in adolescents. The researchers randomly selected 24 adolescents with alcohol use disorders to determine whether the hippocampal volumes in the alcoholic adolescents were less than the normal volume of 9.02 cm. An analysis of the sample data revealed that the hippocampal volume is approximately normal with no outliers and x bar=8.12 cm and s= 0.7 cm. Conduct the appropriate test at the 0.01 level of significance. Identify the P-Value and whether or not the null needs to be rejected or accepted.
In: Statistics and Probability
1) critically differentiate between forward and future contracts.
2 a ltd intends buy 10,000 Rands in three months time . the following information is available.
sport rate 0.67,the forward rate in three months is 0.7, how can a ltd hedge against foreign exchange fluctuation clearly explaining the implication to ltd should the sport rate in three months time be more or less than the forward rate?
3) differentiate between the following types of markets.
a)capital and money markets
b) primary and secondary markets
c) bond and equity markets
In: Finance
Suppose there are two independent economic factors, M1 and M2. The risk-free rate is 4%, and all stocks have independent firm-specific components with a standard deviation of 49%. Portfolios A and B are both well diversified.
| Portfolio | Beta on M1 | Beta on M2 | Expected Return (%) |
| A | 1.6 | 2.4 | 39 |
| B | 2.3 | -0.7 | 9 |
What is the expected return–beta relationship in this economy? (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Expected return–beta relationship E(rP) = % + βP1 + βP2
In: Finance
The gypsy moth is a serious threat to oak and aspen trees. A state agriculture department places traps throughout the state to detect the moths. When traps are checked periodically, the mean number of moths trapped is only 0.5, but some traps have several moths. The distribution of moth counts is discrete and strongly skewed, with standard deviation 0.7.
(a) What are the mean and standard deviation of the average
number of moths x⎯⎯⎯x¯ in 65 traps?
(b) Use the central limit theorem to find the probability that the
average number of moths in 65 traps is greater than 0.4.
In: Statistics and Probability
A company is expected to have earnings of $3.46 per share next year, $4.19 in two years, and $5.58 in three years. The dividend payout ratio is expected to remain at 40% over the next three years. You estimate the risk-free rate to be 5% per year and the expected market risk premium to be 6% per year. In two years, you expect the lagging PE ratio to be 14. The beta of the stock is 0.7. What would be an appropriate estimate of the stock price today? (Answer to the nearest penny, i.e. 55.55 but do not use a $ sign).
In: Finance
You own a lot in Lowell, Massachusetts that is currently unused. Similar lots have recently sold for $0.7 million. Over the past five years, the price of land in the area has increased 8 percent per year, with an annual standard deviation of 12 percent. A buyer has recently approached you and wants an option to buy the land in the next 12 months for $0.77 million. The risk-free rate of interest is 3 percent per year, compounded continuously. How much should you charge for the option? $16,877.44 $15,996.12 $14,762.58 $13,267.79 $12,196.55
In: Finance
You own a lot in Lowell, Massachusetts that is currently unused. Similar lots have recently sold for $0.7 million. Over the past five years, the price of land in the area has increased 8 percent per year, with an annual standard deviation of 12 percent. A buyer has recently approached you and wants an option to buy the land in the next 12 months for $0.77 million. The risk-free rate of interest is 3 percent per year, compounded continuously. How much should you charge for the option?
|
$16,877.44 |
||
|
$15,996.12 |
||
|
$14,762.58 |
||
|
$13,267.79 |
||
|
$12,196.55 |
In: Finance
If x is a binomial random variable, compute P(x) for each of the following cases:
(a) P(x≤5),n=9,p=0.7P(x≤5),n=9,p=0.7
(b) P(x>1),n=9,p=0.1P(x>1),n=9,p=0.1
(c) P(x<3),n=5,p=0.6P(x<3),n=5,p=0.6
(d) P(x≥1),n=6,p=0.9P(x≥1),n=6,p=0.9
In: Math
After converting the nitrate into a purple dye, and measuring the absorbance of the purple dye on a spectrophotometer, a standard curve is used to convert the absorbance into concentration.
To make a standard curve, samples with known concentrations of NO3- are run on the spectrophotemeter. The samples with known concentrations are called standards. A linear regression is then performed to relate the concentration of NO3- to measured absorbance values.
Here is a spreadsheet containing a simulated data set. There are standards and their related absorbance values, and there are samples from two sites that were diluted, prior to processing and measuring their absorbances. The groundwater originates from the upslope site, and the hope is that the microbes in the soil are removing the NO3- from the groundwater before it reaches the downslope site.
| Standard ID | mg N per L | Abs | Sample ID | Upslope Absorbance | Dilution | mg N/L Upslope | Downslope Absorbance | Dillution | mg N/L Downslope |
| Std 0 | 0 | 0 | 1 | 0.5 | 0.01 | 0.2 | 0.5 | ||
| Std 0.1 | 0.1 | 0.12 | 2 | 0.5 | 0.01 | 0.251 | 0.5 | ||
| Std 0.2 | 0.2 | 0.225 | 3 | 0.395 | 0.01 | 0.951 | 1 | ||
| Std 0.4 | 0.4 | 0.432 | 4 | 0.332 | 0.1 | 0.2 | 1 | ||
| Std 0.6 | 0.6 | 0.585 | 5 | 0.551 | 0.01 | 0.149 | 1 | ||
| 6 | 0.556 | 0.01 | 0.2 | 0.5 | |||||
| 7 | 0.359 | 0.02 | 0.251 | 1 | |||||
| 8 | 0.331 | 0.01 | 0.2 | 1 | |||||
| 9 | 0.363 | 0.01 | 0.951 | 0.5 | |||||
| 10 | 0.244 | 0.02 | 0.159 | 1 | |||||
| 11 | 0.375 | 0.01 | 0.2 | 0.5 | |||||
| 12 | 0.5 | 0.02 | 0.143 | 0.5 | |||||
| 13 | 0.541 | 0.1 | 0.317 | 1 | |||||
| 14 | 0.669 | 0.01 | 0.563 | 1 | |||||
| 15 | 0.328 | 0.1 | 0.925 | 0.5 | |||||
| 16 | 0.417 | 0.01 | 0.563 | 1 | |||||
| 17 | 0.449 | 0.02 | 0.653 | 1 | |||||
| 18 | 0.5 | 0.01 | 0.915 | 0.5 | |||||
| 19 | 0.642 | 0.1 | 0.167 | 1 | |||||
| 20 | 0.5 | 0.01 | 0.148 | 1 | |||||
| 21 | 0.243 | 0.1 | 0.851 | 0.5 | |||||
| 22 | 0.375 | 0.01 | 0.536 | 1 | |||||
| 23 | 0.5 | 0.02 | 0.941 | 0.5 | |||||
| 24 | 0.868 | 0.1 | 0.159 | 0.5 | |||||
| 25 | 0.119 | 0.01 | 0.897 | 0.5 | |||||
| 26 | 0.459 | 0.01 | 0.316 | 0.5 | |||||
| 27 | 0.532 | 0.02 | 0.313 | 0.5 | |||||
| 28 | 0.686 | 0.01 | 0.458 | 1 | |||||
| 29 | 0.5 | 0.02 | 0.331 | 0.5 | |||||
| 30 | 0.206 | 0.01 | 0.797 | 1 |
Using the given data create a standard curve in Excel, and use Trendline to add a linear regression with the equation. Then use the standard curve and the dilutions to determine the concentration of NO3- in all the samples. Using the data analysis tool pack, perform the appropriate t-test to deduce if the nitrate concentration upslope is less than or greater than the nitrate concentration downslope. When performing a t-test using the data analysis tool pack, the output will include the means for both groups.
What is the average NO3- concentration at the upslope site? _____________
Report your answer, from the data analysis tool pak output, to 3 decimal places
What is the average NO3- concentration at the downslope site? ______________
Report your answer, from the data analysis tool pak output, to 3 decimal places
Given the EPA drinking water quality standard is 10 mg/L of nitrate, is the upslope site safe to drink based only on nitrate content? _____________ (Enter yes or no)
Is the downslope site safe to drink, based only on NO3- concentration? ____________ (Enter yes or no)
Assuming the two sites are hydrologically well connected, the transit time between the two sites is fast, and the two sites cannot be treated as independent samples, what kind of t-test should be performed to show that the upslope site is greater than the downslope site? Enter the letter of your answer choice in the answer blank
_____________
A. one-tailed unpaired t-test
B. two-tailed unpaired t-test
C. one-tailed paired t-test
D. two-tailed paired t-test
What is the calculated t statistic, rounded to 4 decimal places? ___________
Is the calculated t statistic greater or less than the critical t value reported by the data analysis tool pack? ____________ (enter greater or less)
Is the nitrate concentration at the upslope site significantly greater than the downslope site? ____________ (Enter yes or no)
Based on this statistical result, and assuming no diffusion or dilution occurs between the upslope and downslope site, do you think microbes are removing NO3- from the ground water? __________ (Enter yes or no)
In: Statistics and Probability
9. Packages of sugar bags for Sweeter Sugar Inc. have an average weight of 16 ounces and a standard deviation of 0.2 ounces. The weights of the sugar packages are normally distributed. What is the probability that 16 randomly selected packages will have a weight in excess of 16.075 ounces?
A. 0.9332 B. 0.9110 C. 0.3520 D. 0.0668 E. 0.0500
10. Suppose that 50 percent of the voters in a particular region support a candidate. Find the probability that a sample of 1,000 voters would yield a sample proportion in favor of the candidate within 4 percentage points of the actual proportion.
A. 0.9886 B. 0.9600 C, 0.9484 D. 0.0155 E. 0.0098
In: Math