The current price of a stock is $41. During each 6-month period, the price will either rise by 29% or fall by 22.5%. The annual interest rate is 8.16%. Calculate the value of a one-year American PUT option on the stock with an exercise price of $40.

What prompted the 1943 riots?

“The riot of 1935 demonstrated how minor incidents mask major conflicts”. What minor incident sparked the riot of 1935?

Why were the race riots of 1935 and 1943 considered “turning points” in American history?

Given the topic "American children score lower on standardized tests compared to children in other industrialized nations". What are two questions you would ask if it was your responsibility to solve the problem and explain why you would ask those questions.

President Trump wants to renegotiate The North American Free Trade Agreement (NAFTA).  

1. What do you see as short-term and long-term trade effects?
2. How will renegotiation of NAFTA impact the United States balance of trade and trade deficit.

Assignment:

Identify some of the ways that fast food restaurants emphasize efficiency, predictability, calculabilty, and an extreme form of rational action. Do you agree with George Ritzer's theory of the McDonalization of American society? Be sure to substantiate your answer with facts and examples.

Religion has played a major role in American society since 1619. Consider the Second Great Awakening and transcendentalism; in what ways did they reflect antebellum society’s concerns? What was the Second Great Awakening’s influence on abolition, women’s status, and the poor?

President Wilson declared the United States neutral when WWI first broke out, but eventually led the country into war. Why did the United States decide to participate in the war and what effect American entry have on the allied war effort?

An eel supply company has two large vats of adolescent eels (called ’elvers’). One vat contains American eels, and the other contains European eels. An eel researcher suspects that American eels have a larger number of scales than European eels. Let µAm be the population mean for American, and µEu be the population mean for European. The species of eels can be considered independent. The researcher visits the company and uses an ingenious method to get random samples from each vat (details omitted) and counts the number of scales on each selected elver. Suppose the data from each sample supports the assumption that both species scale counts are approximately normal. The sample statistics are summarized below:

Type Sample Size Sample Mean Sample Variance

American 8 220 21

European 5 204 23

(a) Explain why a two sample t test with an equal variance assumption is reasonable to use here. List the null and alternative hypothesis.

(b) At α = 0.1, find the rejection region in the scale of t and use it to make a reject or not reject decision based on the observed test statistic. Then make a conclusion in the context of the problem.

(c) Decide the same test based on computing the p-value (by hand) and comparing it to α =0.1.

(d) Suppose we instead wanted to test: H0 : µAm −µEu =10 vs. HA : µAm −µEu > 10

If the same data is used for both tests, would the p-value for this test be larger or smaller than the p-value that was computed for the test in part (a)? Explain your answer. You do not need to actually compute either p-value to answer this question. (e) Suppose instead we choose to perform a Welch’s t test. What does that mean for the assumptions we are making? Perform a Welch’s T test for the same data (also by hand). How much do the p values differ?

THANKSGIVING SPECIAL!!! For this applied assignment we will be looking at the number of turkeys and bottles of wine sold each November, comparing the American northeast (i.e., our sample) to the total American averages (i.e., the population).

Every Thanksgiving, an average of 960,000 turkeys and 90,000 bottles of wine are sold per state. Importantly, the population variance/standard deviation is not known. Below is the number of turkeys and bottles of wine sold in each of the ten northeast states.

1. What are the upper and lower boundaries of the range of μ-values that you can say with 95% confidence contains the µ represented by our sample mean for the number of turkeys sold? For our sample mean of the number of bottles of wine sold?
2. If we are interested in whether or not the number of bottles of wine sold in the American northeast increases as the number of turkeys sold increases, how would we write the null and alternative hypotheses (using the new statistical notation for stating statistical hypotheses; see page 235)?
3. What is the strength and direction of the relationship between the number of turkeys and bottles of wine sold in the American northwest?
4. What is r-crit and r-obt for the hypothesis test stated in question #8? Is the hypothesis test significant or insignificant? Would you reject or fail to reject the null hypothesis assuming an alpha-level of 0.05?
5. If you were to use this relationship (and linear regression) to predict how many bottles of wine will be sold in a northeast state in 2018 given the number of turkeys sold in that state, how much more accurate would you be (in percent) compared to if you did not use the relationship to make this prediction (round to two decimal places)?