In a certain town 60% of the households own mutual funds, 40% own individual
stocks, and 24% own both mutual funds and individual stocks.
Randomly select one household.
-Let A be the event that the ho
Calculating covariance and correlation between two random variables
Economic outcome
Depression
Recession
Normal
Boom
Means
Depression
Recession
Normal
Boom
Variances
Stdevs
Covariance
Correlation
Pro
Finance 371M, Money and Capital Markets, Fall 2014
Problem Set #5 - Solutions
I. Multiple Choice
1-5. C/B/B/C/B
6-10. A/D/B/C/A
11-15. A/A/A/D/B
II. Quantitative Problems
sh is
ar stu
ed d
vi y re
aC
Count
See Ads
Skip Ads
Total
60 mins
DH
675
75
750
Joint Distrib 60 mins
DH
See Ads
0.135
Skip Ads
0.015
Total
0.15
Game
350
1400
1750
Total
1250
1250
2500
Game
0.07
0.28
0.35
2275
2725
5000
Total
0.2
demand for
product 1
Probability distribution of demands for substitute products
50
100
150
200
250
M. Prob. Prod
squared dev
demand for product 2
100
200
300
0.015
0.04
0.05
0.03
0.08
0.075
0.05
0.1
Test 2 Review
Rafael Mendoza-Arriaga
Rafael Mendoza
Statistics & Modeling Test 2 Review
McCombs
Prepare for Test#2
Use summary of key terms
Understand all terms
Review all exercises in the Lectures (i
Decision Trees
Test 1 Review
Rafael Mendoza-Arriaga
Rafael Mendoza
Statistics & Modeling Test 1 Review
McCombs
Decision Trees
Prepare for Test#1
Use summary of key terms
Understand all terms
Review al
Lecture 24 Test Review
Rafael Mendoza-Arriaga
Rafael Mendoza
Statistics & Modeling Lecture 24
McCombs
Prepare for Final Exam
Use summary of key terms
Understand all terms
Review all exercises in the L
Confidence Intervals
Simulation
Sampling Distribution
Assumptions and Conditions
Sample Size Assumption: The sample size, n,
must be large enough.
Success/Failure Condition: The sample size
must be
Central Limit Theorem
Central Limit Theorem
Video Link: https:/vimeo.com/75089338
Central Limit Theorem
Central Limit Theorem
Sampling Distribution of X-bar
Assumptions and Conditions
Independence A
Bernoulli and Binomial
Distributions
Do you have ESP?
Do You Have ESP?
Extrasensory perception (ESP), is a special
sense beyond vision, hearing, smell, touch and
taste
Unlike ordinary senses, ESP ha
Combining Random
Variables
STA 309: Fall 2016
Angela Newell, Ph.D.
Combining Random Variables Expected Value
Combining Random Variables - Variances
Combining Random Variables Standard Deviation
Combin
Confidence Intervals for Means
Confidence Intervals
Before deciding to offer a credit card to alumni of a
university, the credit company wants to know
(1) how many customers will accept the offer an
Describing and Displaying
Quantitative Data
Simpsons Paradox
An association that holds for several groups can reverse when
data are combined
Can occur if an important variable is ignored when the da
Conditional Probability
STA 309: Spring 2016
Angela Newell, Ph.D.
From Data to Probabilities
Marginal Probabilities
Marginal Probabilities
Joint Probabilities
Conditional Probabilities
Probability Tre
Relationships and
Categorical Data
Reminders
Optional session in the MODLab (CBA 5.325)
MONDAY from 4-5:30 pm to help you get started
with StatTools
Bring your laptop to this session
PLUS facilitat
Comparing Two Groups
Comparative Studies
To see if there is a difference between two groups, we can measure
the same variable in both groups and compare the results
The groups may receive different
Data
Elementary Business Statistics
Data
What are data? Why do we care? Why do
companies care?
Where do we get data?
Sampling:
Populations
Samples
We hope that sample data is representative of the p
Assessing Assumptions
Checking Assumptions
Regression Assumptions
Residuals
Plots for Evaluating Assumptions
Plot the residuals versus the explanatory variable.
In addition, a histogram and box plot
STA371G Homework Assignment 1
(30 Points. Due in class on Wednesday, 09/13/2017. Group homework.)
Please write down the NAME and EID of each group member. Each group
consists of up to three members.
P
Summary of Topics for Midterm Exam #1
STA 371G, Fall 2017
Listed below are the major topics covered in class that are likely to be in
Midterm Exam #1:
Mean (expectation), variance and standard deviat
STA371G Homework Assignment 3
(40 Points. Due in class. Group homework.) Please write down the NAME
and EID of each group member. Each group consists of up to three members.
Problem 1 (10 point)
A man
Name:
EID:
Time of your class:
Midterm Exam #1, STA 371G, Statistics and Modeling, Fall 2017
You may tear off the blank page at the end as a scratch paper. Please turn in the scratch
paper with the e
Name:
EID:
Time of your class:
Midterm Exam #1, STA 371G, Statistics and Modeling, Spring 2017
You may tear off the blank page at the end as a scratch paper. Please turn in the scratch
paper with the
HDF 322
Tax Application Activity
Instructions: Complete the following questions. You may work together on this assignment. Be sure to
understand the principles being taught.
1.
Jessica works at Intel
HDF 322
Tax Application Activity
Key
Instructions: Complete the following questions. You may work together on this assignment. Be sure to
understand the principles being taught.
1.
Jessica works at In
Name: _
Purchasing a House (Worksheet)
Submit only this worksheet only. Digitally upload it for the TAs to grade.
Use the Application Activity: Purchasing a House Instructions to complete this activit
Section 2.3: Simple Linear Regression: Predictions
and Inference
Jared S. Murray
The University of Texas at Austin
McCombs School of Business
Suggested reading: OpenIntro Statistics, Chapter 7.4
1
Sim
Section 1.4: Learning from data
Jared S. Murray
The University of Texas at Austin
McCombs School of Business
Suggested reading: OpenIntro Statistics, Chapter 4.1, 4.2, 4.4, 5.3
1
A First Modeling Exer