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A diet center claims that it has the most effective weight loss program in the region. Its advertisement says "Participants in our program really lose weight." Five clients of this program are weighed on the first day of the diet and then three months later.
a. Specify the null and alternative hypotheses to test the diet center's claim.
b. Calculate the value of the test statistic T.
c. At the 5% significance level, what is the decision rule?
d. Do the data support the diet center's claim? Explain.
Nine percent of undergraduate students carry credit card balances greater than $7,000. Suppose 10 undergraduate students are selected randomly to be interviewed about credit card usage.
Let x ¯ be the observed mean of a random sample of size n from a normal distribution having mean μ and variance σ2.
the current price of a non-dividend paying stock is 40 and the continuously compounded risk-free rate of return is 8.
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A researcher is trying to discover the average age at death for people in the United States today. To obtain data, the obituary columns of The New York Timesare read for 30 days, and the ages at death of people in the United States are noted.
However, during the second 10-year period, the payment reduces to 6 if (x) only is alive, or to 8 if (y) only is alive. Write the present value in terms of single and joint-life annuities.
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