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Corporate raider Asher Adelman, teaching a course at Columbia University's School of Business, made the following proposal to his students. He would pay $100,000 to any student who would give him the name of an undervalued company, which Adelman would then buy.
Suppose that Adelman has 15 students in his class and that 5% of all companies in this country are undervalued. Suppose also that due to liquidity problems, Adelman can give the award to at most three students.
Finally, suppose each student chooses a single company at random without consulting others. What is the probability that Adelman would be able to make good on his promise?
An observation was drawn from a normally distributed population with mean 2.397 and standard deviation 0.612. If the observed value is 3.144, find the z-score. Give your answer accurate to 3 decimal places.
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A regression model between sales (Y in $1,000), unit price (X 1 in dollars) and television advertisement (X 2 in dollars) resulted in the following function: = 7 - 3X1 + 5X 2 For this model SSR = 3500, SSE = 1500, and the sample size is 18...
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