Associations
When one variable, y, increases with the second variable, x, there is a positive
association between x and y
When one variable decreases with the second variable, there is a negative asso
Revisions for Unit 1: Financial Mathematics
1
a
He needs to invest $2547.47 per month
b
10.25 years
2
a i
ii
iii
$986.57 per month
Total payments=986.57*25*12=$295,971
Total interest paid=$295, 971-12
Revision questions for Exam
1. A purchasing agent has placed two rush orders for a particular raw material from two
different suppliers, A and B. If neither order has arrived in 4 days the production
HYPOTHESIS TESTING REVISION
SOLUTIONS
All answers are given in short but you must provide your answers in 5-step procedure as indicated in
notes. In all questions was used as 5%.
Qu 1 Two tail test, t
FIN10002 Revision
HYPOTHESIS TESTING
1 A bath soap manufacturing process is designed with the expectation that each batch prepared
in the mixing department will produce a mean of 120 bars of soap per
FIN10002 Revision
Probability and Normal Probability
1. An airline has offered a special vacation package to Fiji. The length of stay is either for 3
days or 7 days, and the type of accommodation can
FIN10002 Revision
REGRESSION, TIME SERIES and INDEX NUMBERS
1.
The management of a building society in the city of Mortgageville would like to know
how house sales vary with interest rates. The follow
Sampling and Estimation Revision
1.a
2.a
2.b
Expected value or mean of x is the mean of all possible values of x that can be generated by simple
random samples. In this case E( x ) 750 (gm) ie the mea
ECON1203
Business and Economics Statistics
Proposed solutions to Tutorial Problem 7
Week 8
1. Suppose a normally distributed random variable X has a mean of 50 and a variance of 100.
Also suppose a sa
Financial Statistics
FIN 10002
FIN10002 revision for Financial mathematics
1.
(a) A person wishes to retire on a lump sum of $500,000 in 10 years time. He is able to invest
his money at 9.25% pa compo
FIN1002 Financial Statistics Module 8 Time Series Solutions 2015/16
Set 8A
Question 1
(a)
Enter the data into three columns in an Excel spreadsheet say column A, column B and column C.
Highlights cell
FIN1002 Financial Statistics Module 7 Correlation and Regression
Solutions 2015/16
Question 1
(a)
Enter the data into two columns in an Excel spreadsheet say column A and column B. Highlights cells
A2
Exercise Set 1A
Q1
FV is used
Future value= $64845.30
Q2
PV is used
Q3
Present value= $62346.89
NPER is used
Q4
Number of years= 5.29 years
EFFECT is used
Effective interest rate is 0.0439*100%=4.39%
Financial Statistics
FIN 10002
SOLUTIONS:
SET 2A:
(a)
Ratio/discrete
(c)
ratio/continuous
(b)
(d)
nominal
ratio/continuous
SET 2B:
(a)
The variable is student learning style. This is a nominal variabl
SOLUTIONS TO EXERCISES ON NORMAL DISTRIBUTION
SET 4A:
1.
3. (a) For Q3 to Q7 use Excel to calculate the
probabilities. You should also draw some of the
diagrams by hand BEFORE using Excel to
calculate
SOLUTIONS FOR NORMAL DISTRIBUTION EXERCISES
SET 4B:
1.
(iv)
Pr(10 < X < 27)
=normdist(27,20,5,true) normdist(10,20,5,true)
= 0.896 i.e. 89.6%
(a) (i)
Pr(5 < X < 35)
= normdist(35,20,5,true)normdist(5,
FIN1002 Financial Statistics Module 5 Sampling Solutions Set 5A2015/16
1.
The purpose of statistical inference is to obtain information about a population parameter based
on a subsection of the popula
FIN1002 Financial Statistics Module 6 Sampling Solutions Set 5B- 2015/16
Solutions for Set 6A
Question 1
i.
Null Hypothesis
Alternative Hypothesis
ii.
Test Statistic and significance: Z-test ( populat
ECON1203
Business and Economics Statistics
Tutorial 6 Problems
Week 7
1. In a certain large city, household annual incomes are considered approximately
normally distributed with a mean of $40,000 and