1. Suppose that the monthly interest rate is 0.05%. What would be the monthly mortgage payment on a
$500,000 dollar mortgage for a 30 year, fixed rate loan?
=PMT(0.05%,30*12,-500000,0)
$1,517.98
2. Suppose you buy a bond for $10 with a zero-coupon payment
Assumptions
Working hours a day
Inflation Rate
Income tax
8
3.50%
30%
1914
2014
0.63 $ 40.00
5.00 $ 320.00
3.50 $ 224.00
Pay per hour
Pay per day
Post Tax pay
$
$
$
Future value of post tax pay
Current post tax payment
$155.96
$ 224.00
So auto worker in 2
x
y
X descriptive stats
530
1115
1145
510
380
250
350
465
150
165
Mean
Standard Error
Median
Mode
Standard Deviation
Sample Variance
Kurtosis
Skewness
Range
Minimum
Maximum
Sum
Count
736
162.96778823
530
#N/A
364.40705262
132792.5
-3.102653205
0.494715147
A real estate company surveyed 50 of its sold properties. The following table gives the
selling prices (in thousand dollars) of these properties.
61.4
63.9
73.4
57.3
54.8
56.8
76.4
32.1
35.3
27.3
46.8
54.6
87.8
60.5
60.1
46.8
54.9
39.1
26.4
67.9
65.1
71.1
Question 5:
a. Expected value: (1/4+1/4+1/4+1/4)*u
*(4u) = u
Variance: 4*(1/4^2* variance) + 0
Covariance for all the variables is independent so 0
Variance = *sigma square = 0.25*sigma square
b. Now weights have changed
Mean: (1/8+1/8+1/4+1/2)*u
=u (so e
Question 1
a. Mean of X = 736
Mean of Y=276
b. Std dev of X= 364.41; std dev of Y=132.35
c. Correlation coefficient= 0.926253
d. Slope coefficient= 0.336
e. Intercept: 28.397
f. Predicted values:
Observatio
n
1
2
3
4
5
g. Residuals:
Residuals
43.30205019
Think about a study you would like to explore in your future or current career that could be analyzed with a onesample t test. To help design the study, please answer the following:
List the null hypothesis and alternative hypothesis.
Explain what you exp
The proportion of settled medical malpractice suits is 0.21.
Which of the following is a type I error?
Reject the claim that the proportion of settled malpractice suits is 0.21 when the proportion is actually
0.21.
Assume that the significance level is al