Refer to Matched Problem 1 in Section 9.1, where we found the following transition matrix for an insurance company:
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- Question 3 Hermie's average 5-day natural gas usage rate is 5.9Therms5days . What are her 1-day, and 8-day, natural gas usage rates? 1.18Therms1day,7.375Therms8days 0.7375Therms1day,9.44Therms8days 1.18Therms1day,9.44Therms8days 0.7375Therms1day,7.375Therms8daysarrow_forwardQUESTION 5 A country club wants to exam the effects of a new marketing campaign that attempts to get more people within the community to become members. In many communities, when people buy a house in the area, they receive a “Welcome Wagon” gift basket containing coupons to local restaurants. The idea of the marketing campaign is to include a free two month membership to the country club in the gift basket with the hope that once “new” residents try the country club then at least a certain proportion will want to become real members. One member of the Club’s Executive Council believes that at least 80% of the people who receive the coupons for the free membership will use the coupon. In a sample of 197 new residents who received the coupon for the two month free membership, there were 136 people who actually took advantage of the free two month membership. When testing the hypothesis that at least 80% of the people that receive the coupon actually use it, what is the test statistic?…arrow_forwardI. Write P if it is a primary source and S if it is a secondary source. There is a price adjustment on our electric bill according to the latest news. * Students of BS-Biology gathered important features of their research from the data published in the newspapers. * A weatherman reports the development of a typhoon signal in the affected area. A student of BS Psychology is directly observing the behavior of patients with depression. *arrow_forward
- TABLE 10.2 A course can be taken for credit either by attending lecture sessions at fixed times and days, or by doing online sessions that can be done at the student's own pace and at those times the student chooses. The course coordinator wants to determine if these two ways of taking the course resulted in a significant difference in achievement as measured by the final exam for the course. Table 10.2 gives the scores on an exami- nation with 45 possible points for one group of n₁ = 9 students who took the course online, and a second group of n₂ = 9 students who took the course with conventional lectures. Do these data present sufficient evidence to indicate that the average grade for students who take the course online is significantly higher than for those who attend a conventional class? Test Scores for Online and Classroom Presentations Online Classroom 32 37 35 28 41 44 35 31 34 35 31 29 25 34 40 27 32 31arrow_forward1.13 Figure P1.13 depicts the various ways in which an aver- age person gains and loses water in one day. One liter is ingested as food, and the body metabolically produces 0.3 liters. In breath- ing air, the exchange is 0.05 liters while inhaling, and 0.4 liters while exhaling over a one-day period. The body will also lose 0.3, 1.4, 0.2, and 0.35 liters through sweat, urine, feces, and the skin, respectively. To maintain steady state, how much water must be drunk per day?arrow_forwardQuestion 3 く To estimate the percentage of households in Connecticut which use fuel oil as a heating source, a researcher collects information from 1000 Connecticut households about what fuel is their heating source. Match the following: percentage of all households in Connecticut that use fuel oil as a heating source a household in Connecticut type of fuel used as heating source v1000 households in Connecticut all households in Connecticut v percentage of 1000 households in Connecticut that use fuel oil as a heating source a. variable b. population C. population parameter d. individual/observation e. sample statistic f. samplearrow_forward
- QUESTION 14 Prior to a set of compensation policy changes at a company 31% of the employees surveyed said that they liked their job very much, 48% said that they liked their job moderately, and the remaining employees said that they were dissatisfied with their job. Now, in a survey of 190 employees, 63 said they liked their job very much, 104 said that they liked their job moderately, and the remaining employees said that they were dissatisfied with their job. When testing (at the 5% level of significance) whether the proportions have changed, what is the test statistic? (please round your answer to 3 decimal places)arrow_forwardChapter 13, Section 13.1, Problem 019 A researcher took a sample of 10 years and found the following relationship between x and y, where x is the number of major natural calamities (such as tornadoes, hurricanes, earthquakes, floods, etc.) that occurred during a year and y represents the average annual total profits (in millions of dollars) of a sample of insurance companies in the United States. ý = 352.0 – 2.9x a. A randomly selected year had 24 major calamities. What are the expected average profits of U.S. insurance companies for that year? The expected average profits are $ million. exact number, no tolerance b. Suppose the number of major calamities was the same for each of 3 years. Do you expect the average profits for all U.S. insurance companies to be the same for each of these 3 years? O Yes, the average profits will be the same for each of these three years. O No, the given equation provides an estimate of the average profits, not the exact amount. c. Is the relationship…arrow_forwardQuestion 2: Assume that the risk-free rate, RF, is currently 8%, the market return, RM, is 12%, and asset A has a beta, of 1.10. (could be done on word document or excel). Assume that as a result of recent events, investors have become more risk averse, causing the market return to rise by 2%, to be14%. Ignoring the shift in part c, draw the new SML on the same set of axes that you used before, and calculate and show the new required return for asset A. From the previous changes, what conclusions can be drawn about the impact of (1) decreased inflationary expectations and (2) increased risk aversion on the required returns of risky assets?arrow_forward
- 1. The following data represent the operating time in hours for 4 types of pocket calculators before a recharge is required.Fx101 Fx202 Fx303 Fx404 6.4 5.9 7.1 5.3 6.1 5.8 7.1 4.9 6.5 5.9 7.2 6.1 6.2 5.1 7.3 7.1 6.3 5.0 7.4 4.9Test at 0.01 level of significance if the operating times for all four calculators are equal. Use 4 decimal placesSTATISTICS = _____COMPUTED VALUE = _____TABULAR VALUE = _____CONCLUSION = _____arrow_forwardAgain recall Table 8a from the working paper "The Market for Financial Advisor Misconduct" discussed in Lecture 7 and HW 7. For your convenience, the table is reproduced below. Table 8a. Consequences of Misconduct: Industry and Firm Discipline No Misconduct Misconduct Remain with the Firm 81.29% 51.99% Leave the Firm 18.71% 48.01% Leave the Industry 8.92% 26.96% Join a Different Firm (within 1 year) 21.05% 9.79% Note: Table 8a displays the average annual job turnover among financial advisers over the period 2005-2015. The table shows, on average, the percentage of advisers that remain with their firm, leave the industry (for at least one year) or join a new firm (within a year). The job transitions are broken down by whether or not the advisor was disciplined for misconduct in the previous year. Consider randomly selecting five financial advisors who were disciplined for misconduct in the previous year. What is the chance that at least one of them leaves the firm? (Answer as a…arrow_forwardQUESTION 3 Which of the following statements is correct? a.A finite distributed lag (FDL) model is chosen if a change in the independent variable(s) is(are) believed to have a lagged effect on the dependent variable. b.A FDL model of order q contains independent variable(s) lagged q time periods back. c. In a FDL model of order q, there is no further changes in the dependent variable due to the independent variable(s) after q time periods. d.All of the above.arrow_forward
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