Curiously, this value is the tail area beyond 4.5 standard deviations from the mean; i.e., Pr (Z > 4.5) = Pr (Y > + 4.5 ) = 0.000 003 398. The 4.5 standard deviations is the difference between 6 (the idea from which the program takes its name) and an assumed 1.5 shift of the […]
I need help with an econometrics homework. Specifically, I need help figuring out how to derive the variance of yhat (Problem 2b), and I need my answers for the other problems checked, focusing on how to get p-values in problems 1d and 4d (what am I doing wrong, if anything?). The instructions say to figure […]
T/F 1) If brand A’s price varies over time and brand B’s price stays constant, the covariance between the two brands’ prices must be zero. 2) If the population is normally distributed we can always use the normal distribution to develop a confidence interval for the mean. 3) The expected value of a sample mean is the population […]
Sacramento Paper is considering two mutually exclusive projects. Project A has an internal rate of return (IRR) of 11 percent, while Project B has an IRR of 15 percent. The two projects have the same risk, and at a required return of 8.0 percent the projects have the same NPV (i.e., the cross-over rate = […]
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