QUESTION 1
Suppose an analyst takes a random sample of 5 recent truck shipments made by a company and records the distance in miles and delivery time in days that the shipment was made available for pick-up.
The observations are as follows:
Distance (miles) 825 215 1070 550 340
Delivery time (days) 2 1 4 2 1

Determine the covariance between the two variables. Use the sample covariance formula:

a. 396.25

b. 390

c. 421.25

d. 427.5

e. 343.75
1 points
QUESTION 2
One of the major risks in the economy is the oil price. Many financial assets are severely affected by the oil price. Consider a natural gas company and an automobile company. The natural gas company will be hit by a low oil price because the demand for natural gas will decrease as oil becomes cheaper. But the automobile company will benefit from a low oil price as more people can afford the cost of driving a car. The probability of the oil price next year is given by the following table:
Oil price Probability
drops 30%
does not change 40%
arises 30%

Contingent on the change in the oil price next year, the annual returns to the companies are expected as follows:

If oil price Natural gas Automobile
drops -8% 14%
does not change 7% 4%
arises 12% -6%

You are planning to invest 40% of your investment in the natural gas company and the remaining in the automobile company. What is the variance of your portfolio?

a. 4.56

b. 10.14

c. 3.36

d. 1.5

e. 12.54
1 points
QUESTION 3
After analyzing several months of sales data, the owner of an appliance store produced the following probability distribution of the number of refrigerators and stoves sold daily.
Refrigerators Stoves Probability
0 0 10%
0 1 40%
1 0 30%
1 1 20%
1. Find the covariance.

a. 0.07

b. -0.11

c. 0.05

d. 0.02

e. -0.1
1 points
QUESTION 4
The Graduate Management Admission Test (GMAT) has four sections: analytical writing, integrated reasoning, quantitative and verbal sections. Suppose that a researcher collected GMAT score data and calculated the covariance matrix across sections.
Analytical Writing Integrated Reasoning Quantitative Verbal
Analytical Writing 0.81
Integrated Reasoning 0.108 1.44
Quantitative 1.08 2.88 16
Verbal 0.54 1.8 4.8 9

Find the pair of two sections that have the largest correlation coefficient.

a. Quantitative and verbal

b. Analytical writing and quantitative

c. Analytical writing and integrated reasoning

d. Integrated reasoning and quantitative

e. Analytical writing and verbal
1 points
QUESTION 5
The following table gives the per-capital income in hundred dollars and the percentage of the economy represented by agriculture for some countries.
Per-capita Income ($100) 45 55 35 60 55
Percentage of the Economy in Agriculture (%) 9 8 4 8 6

Find the coefficient of correlation. (Use the sample variance and covariance formula.)

a. 0.563

b. 0.688

c. 0.938

d. -0.313

e. -0.563

 

 

Sample Solution

 

December 9, 2018

Co-variance and Correlation

QUESTION 1 Suppose an analyst takes a random sample of 5 recent truck shipments made by a company and records the distance in miles and delivery […]

Read More

December 5, 2018

Protein Supplement

Thesis Statement: Protein supplement, regardless of its form, has advantages and disadvantages. I. Introduction. The function of a protein (What’s the protein? what are amino acids/BCAAs) […]

Read More

December 5, 2018

Separation of Fluorescent Protein by Capillary Electrophoresis

Write the introduction for the lab report by your own words. Introduction: (9 pts) • Description of CE Instrumentation (1 pt) • Description of CE Theory […]

Read More

November 28, 2018

Stem cells

Stem cells are the basis for every organ and tissue in our bodies. We continually rely on stem cells to replace and rejuvenate tissues lost every […]

Read More

November 13, 2018

Shark versus the Panda

    Shark versus the Panda Studies on the ecological system have shown that the lives of each species in every habitat are so inter-connected and […]

Read More

November 11, 2018

Bioenergy

-Definition of bioenergy -Types of bioenergy. – Type of organisms involved, type of cells for these organisms. – Macromolecules produced. – Identify the type of organism […]

Read More

November 6, 2018

Importance of Physical Assessment. NEUROLOGICAL SYSTEM

• Apply evidence-based practice research findings in the management of health issue. • Discuss how age, gender, and culture affect health assessment and physical examination outcomes […]

Read More

November 5, 2018

Conceptions of chemical kinetics

Discuss on Using Phenomenology, a mixed methods study to determine 11th grade students conceptions of chemical kinetics at the particle level.           […]

Read More

November 3, 2018

Allosteric enzyme

1)Explain/define what allosteric enzyme is 2)Where do you expect to find a allosteric bio synthetic pathway composed of many enzymes? why? 3)Explain what is feedback inhibition? […]

Read More

ACED ESSAYS