T UTORIAL11
1. A study published in The Journal of American Academy of Business, Cambridge (March 2002)
examined whether the perception of service quality at five-star hotels in Jamaica differed by gender.
Hotel guests were randomly selected from the lobb
T utorial 3
Probability
1 . ( 0.5p)
An experiment consists of tossing a coin and a die. If E1 i s the event that
" head" comes up in tossing the coin and E 2 is the event that "3 or 6" comes up in tossing
the die, state in words the meaning and calculate
Hedging Strategies Using
Futures
Chapter 3
AGENDA :
Hedging Strategies Using Futures
Long
and Short Hedge;
Basis risk;
Cross Hedging and Hedge ratio;
Hedging using index futures;
Rolling The Hedge Forward.
Long & Short Hedges
A
long futures hedge is
Stock Trak Global Portfolio
Simulation
Open
an account: username and password
for your group at:
http:/www.stocktrak.com/public/members/reg
Transaction report 1.
1.
Take a long position in one e-mini S&P 500 (SP) March
futures contract and a short posit
Lecture 2
Introduction to Probability
Source:
/1 / D.R.Anderson, D.J.Sweeney, T.A.Williams. Quantitative Methods for Business, South-Western
College Publishing, 11-th edition. Chapter 2.
Contents:
2.1 Experiments and the sample space
2.2 Assigning probabi
DeterminationofForward
andFuturesPrices
Chapters 4.1, 4.2 and Chapter 5
1
AGENDA:
Short selling strategy;
Measuring interest rates;
Determination of forward price for assets:
that do not have an interim cash flow;
that have a known interim cash flow;
that
MechanicsofFutures
Markets
Chapter 2
Agenda:
1.
2.
3.
4.
Features of futures contracts;
Margins requirements;
Delivery and types of orders;
Futures vs. Forwards
FuturesContracts
A futures contract is an agreement that
has obligation to buy or sell an asse
Introduction to
Financial Derivatives
Chapter 1
AGENDA:
Derivatives and ways they are used;
Types of derivatives contracts:
1.
2.
1.
Futures
Forwards
Options
Simple examples of hedging, speculation and
arbitrage with derivatives.
What is a derivative?
A d
Lecture 10
Leontief Input-Output Analysis
A very important application of matrices and their inverses is found in the branch of applied
mathematics called input-output analysis. Wassily Leontief, the primary force behind these new
developments, was awarde
Tutorial 1
1. (0.25p)
Complete the following table. Final Grade on Business Statistical Analysis
Final Grade on Business
Statistical Analysis
A: 80-100
B: 70- 79
C: 60- 69
D: 50- 59
F: Below 50
Total
Frequency
36
90
30
28
200
Relative Frequency
0.08
1.00
Tutorial 2
1. (1pt) The U.S. Energy Information Administration monitors all nuclear power plants
operating in the United States. The table lists the number of active nuclear power plants
operating in each of a sample of 20 states.
a. Find the mean, median
Tutorial 4
1. (0.5p)The risk of a portfolio of financial assets is sometimes called investment risk
(Radcliffe, 1994). In general, investment risk is typically measured by computing the variance or
standard deviation of the probability distribution that d
T utorial5
1. An Internal Revenue Service (IRS) inspector is to select 4 corporations from a list of 12
for tax audit purposes. Of the 12 corporations, 5 earned profits and 7 incurred losses during
the year for which the tax returns are to be audited. If
Tutorial12
1. Independent random samples were selected from each of two normally distributed populations
n1 = 25
n 2 = 25
s1 = 0.76
s 2 = 0.46
Test the null hypothesis H 0 : 12
Use = 0.05
2
2
= 2 against the alternative hypothesis H a : 12 2
T UTORIAL14
1. A multinomial experiment with = 4 cells and n = 205 produced the data shown in
the
following one-way table.
ni
Cell
1
2
43 56
3
59
4
47
a. Do these data provide sufficient evidence to conclude that the multinomial probabilities
differ? Test
Answers to Quiz Questions
CHAPTER 1
1.1 A trader who enters into a long futures position is agreeing to buy the underlying asset for
a certain price at a certain time in the future. A trader who enters into a short futures
position is agreeing to s ell t
Lecture 4
Game Theory
Source:
/1 / D.R.Anderson, D.J.Sweeney, T.A.Williams. Quantitative Methods for Business, SouthWestern College Publishing, 11-th edition. Chapter 5.
Contents:
4.1 Introduction to Game Theory
4.2 Mixed Strategy games
4.1 Introduction t