Korea Advanced Institute of Science and Technology
Intro Financial Mathematics
FIN FIN534

Spring 2009
58
Instructors Solutions Manual for Statistics for Business & Economics, 5th Edition
Chapter 5: Discrete Random Variables and Probability Distributions
5.1 a. b. c. d. Discrete Discrete Discrete Discrete
52
Discrete
53 Various answers includin
Korea Advanced Institute of Science and Technology
Intro Financial Mathematics
FIN FIN534

Spring 2009
190
Solutions Manual for Statistics for Business & Economics, 5th Edition
Chapter 11: Multiple Regression
11.1 The estimated regression slope coefficients are interpreted as follows: b1 = .661: All else equal, an increase in the planes top speed by
Korea Advanced Institute of Science and Technology
Intro Financial Mathematics
FIN FIN534

Spring 2009
CHAPTER 15 Exercise 15.1
1. (a) With a = 4 and b = 12, we have yc = Ae4t , yp = The denite solution is y(t) = e4t + 3. (b) yc = Ae(2)t , yp =
0 2
12 4
= 3.
The general solution is
y(t) = Ae4t + 3. Setting t = 0, we get y(0) = A + 3, thus A = Y (
Korea Advanced Institute of Science and Technology
Intro Financial Mathematics
FIN FIN534

Spring 2009
CHAPTER 11 Exercise 11.2 1. The derivatives are: fx = 2x + y, fy = x + 4y, fxx = 2, fyy = 4, and fxy = 1. The rstorder condition requires that 2x + y = 0 and x + 4y = 0. Thus we have x = y = 0 implying z = 3 (which is a minimum)
2. The derivatives
Korea Advanced Institute of Science and Technology
Intro Financial Mathematics
FIN FIN534

Spring 2009
Chapter 19: Statistical Decision Theory
149
Chapter 19: Statistical Decision Theory
191 192 No, all actions are admissible D is dominated by C. Therefore, D is inadmissible.
193 a. The Maximin criterion would select the Certificate of Deposit:
Korea Advanced Institute of Science and Technology
Intro Financial Mathematics
FIN FIN534

Spring 2009
Chapter 18: Additional Topics in Sampling
137
Chapter 18: Additional Topics in Sampling
181 through 5 Answers should refer to each of the steps outlined in Figure 18.1 Steps in a sampling study 186 through 8. Answers should deal with issues such
Korea Advanced Institute of Science and Technology
Intro Financial Mathematics
FIN FIN534

Spring 2009
96
Instructors Solutions Manual for Statistics for Business & Economics, 5th Edition
Chapter 17: Time Series Analysis and Forecasting
17.1 Various answers. A price index of a market basket of goods and services could be compiled to measure how pric
Korea Advanced Institute of Science and Technology
Intro Financial Mathematics
FIN FIN534

Spring 2009
72
Instructors Solutions Manual for Statistics for Business & Economics, 5th Edition
Chapter 16: Introduction to Quality
161 thru 5. Various answers. 16.6 a. = s / c4 = 5.42 / .959 = 5.6517 b. CL = X = 192.6 3 LCL = X A3 s , where A3 = = 192.6
Korea Advanced Institute of Science and Technology
Intro Financial Mathematics
FIN FIN534

Spring 2009
26
Instructors Solutions Manual for Statistics for Business & Economics, 5th Edition
Chapter 14: GoodnessofFit Tests and Contingency Tables
14.1 H 0 : first preferences are evenly distributed across the three books. H1 : otherwise
Made Easy 17 0.
Korea Advanced Institute of Science and Technology
Intro Financial Mathematics
FIN FIN534

Spring 2009
Nonparametric Statistics
17
Chapter 13: Nonparametric Statistics
131 H 0 : = .5 (there is no preference for one stock over the other) H1 : .5 (otherwise) n = 11 For stock 2 and a twosided test, P(2 X 9) = 2P(X 1) = 2[.0005 + .0054] = .0118 T
Korea Advanced Institute of Science and Technology
Intro Financial Mathematics
FIN FIN534

Spring 2009
Chapter 12: Additional Topics in Regression Analysis
247
Chapter 12: Additional Topics in Regression Analysis
121 Yi 0 1 X 1i 2 X 2i 3 X 3i 4 X 4i i where Yi = College GPA X1 = SAT score X2 = 1 for sophomore, 0 otherwise X3 = 1 for juni
Korea Advanced Institute of Science and Technology
Intro Financial Mathematics
FIN FIN534

Spring 2009
Chapter 10: Simple Regression
153
Chapter 10: Simple Regression
10.1 Let x = Project and y = Examination. n = 10, x = 767, X = 767 /10 = 76.7, x 2 = 59497
y = 786, Y = 786 /10 = 78.6, y
r=
2
60862 (10)(76.7)(78.6)
= 62604, xy = 60862 =.77
Korea Advanced Institute of Science and Technology
Intro Financial Mathematics
FIN FIN534

Spring 2009
132
Instructors Solutions Manual for Statistics for Business & Economics, 5th Edition
Chapter 9: Hypothesis Testing
9.1 a. European perspective: H 0 : Genetically modified food stuffs are not safe : They are safe b. U.S. farmer perspective: H 0 : G
Korea Advanced Institute of Science and Technology
Intro Financial Mathematics
FIN FIN534

Spring 2009
Chapter 8: Estimation
113
Chapter 8: Estimation
8.1 a. An unbiased point estimator of the population mean is the sample mean: X i = 520.95 X= n
N 100 Minimum 504.70 Mean 520.95 Maximum 544.80 Median 518.75 Q1 513.80 TrMean 520.52 Q3 527.28 StDev 9
Korea Advanced Institute of Science and Technology
Intro Financial Mathematics
FIN FIN534

Spring 2009
98
Instructors Solutions Manual for Statistics for Business & Economics, 5th Edition
Chapter 7: Sampling and Sampling Distributions
71 a. Probability distribution for one die: Die outcome Probability 1 1/6 2 1/6 3 1/6 4 1/6 5 1/6 6 1/6 b. Sampling
Korea Advanced Institute of Science and Technology
Intro Financial Mathematics
FIN FIN534

Spring 2009
84
Instructors Solutions Manual for Statistics for Business & Economics, 5th Edition
Chapter 6: Continuous Random Variables and Probability Distributions
6.1 a.
Probability Density Function: f(x)
1.5 f(x)
1.0
0.5
0.0 0
X
1
b.
Cumulative dis
Korea Advanced Institute of Science and Technology
Intro Financial Mathematics
FIN FIN534

Spring 2009
Chapter 4: Probability
45
Chapter 4: Probability
4.1. a. The complement of event A is that it will take 4 days or less before the machinery becomes operational. b. The intersection of A and B will be the event that it takes 5 days before the machin
Korea Advanced Institute of Science and Technology
Intro Financial Mathematics
FIN FIN534

Spring 2009
Chapter 3: Summarizing Descriptive Relationships
25
Chapter 3: Summarizing Descriptive Relationships
3.1 Information on the scatter plot includes; direction & type of relation, strength, slope or rate of response and outliers:
Tax Rate vs. % Comme
Korea Advanced Institute of Science and Technology
Intro Financial Mathematics
FIN FIN534

Spring 2009
Chapter 2: Describing Data
3
Chapter 2: Describing Data
21 a. b. c. d. Numerical discrete Numerical discrete Numerical discrete Categorical
2.2
a. Categorical data. The measurements levels are qualitative  ordinal. b. Categorical data. The m