Option Pricing: A Simplified Approach† John C. Cox Massachusetts Institute of Technology and Stanford University Stephen A. Ross Yale University Mark Rubinstein University of California, Berkeley March 1979 (revised July 1979) (published under the same title in Journal of Financial Economics (September 1979)) [1978 winner of the Pomeranze Prize of the Chicago Board Options Exchange] [reprinted in Dynamic Hedging: A Guide to Portfolio Insurance, edited by Don Luskin (John Wiley and Sons 1988)] [reprinted
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most of the popular statistical techniques assume that studied data are normally distributed under certain conditions. Therefore, a normality test was performed to: Test if demand is well-modeled by a normal distribution or not. Find out descriptive statistics about the demand distribution such as mean, standard deviation and P-value. Test result revealed that the demand is normally distributed with: Mean = 0.664 Standard Deviation = 0.776 P-Value < 0.005 Below are graphical presentations
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hold time exceeded 110 s = P(x>110) = ? Answer: Mean of a distribution (μ) and a data point (x) is related by the following equation: x = μ ± zσ For x > 110 s; [pic] Now, [pic] Value of [pic] is area under normal curve between z = 0 to z = 0.43. Thus it can be seen that fraction of days when call center failed to meet the targeted hold time is approximately 1/3 or 0.336. This finding is supported from the frequency distribution table as well where this fraction is 240/731 ~1/3. Q2. Given
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Review of Outlier Detection Methods INTRODUCTION Outliers or anomalies can exist in all types of collected data. The presence of outliers may indicate something sinister such as unauthorised system access or fraudulent activity, or may be a new and previously unidentified occurrence. Whatever the cause of these outliers, it is important they are detected so appropriate action can be taken to minimise their harm if malignant or to exploit a newly discovered opportunity. Chandola, Banerjee
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Process Improvement Plan Christina Scott OPS/571 March 19, 2012 Ray E. Mowery Process Improvement Plan In week one of this course, the students were asked by the instructor to select a process that the student performed on a daily basis. This student chose the task of driving to work. The student collected driving times for four weeks. This paper will cover the explanation of the control limits, including calculations and data used to determine them. The paper will discuss the effect of any
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If there are images in this attachment, they will not be displayed. Download the original attachment Real Foods One way ANOVA Steps involved in a statistic test 1. Background information 2. Assumptions : method of Sampling, dependent or independent variables, scale of measurement, and sample size 3. State the Hypothesis * Error types: false positive- reject a true null and false negative: fails to reject a false null hypothesis * A statistical test
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interconnected to the local electrical distribution grid using a ‘behind the meter’ 480V 3 phase interconnection. As such, electricity that is generated by the solar PV system is used by the Pilgrim Furniture facility, effectively reducing the demand on the local electricity distribution grid. During periods when the solar PV system produces more electricity than is needed by the Pilgrim Furniture facility, the excess electricity is delivered back to the distribution grid via the utility company’s
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STANINE SCORE - Coined from Standard Nine. - Standard score that separates the normal distribution into 9 symmetrical groups , where there is one-half (1/2) Sd equally distributed fore ach of the groups from 2nd to the 8th while placing the mean at the center of the 5th. DISTRIBUTION OF STANINE SCALE Stanine Percent of Distribution z-score boundaries Performance Distribution 9 4% Above 1.75 Superior 8 7% Above 1.25 to 1.75 Above Average 7 12% Above 0.75 to 1.25 Above Average 6 17% Above
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Assessment Why do we assess? Petty describes assessment ‘in the right hands, assessment can inspire, motivate and provide the feedback which is essential for targeting prompt corrective help’ Petty G, (2001) When an assessment is given it’s purpose is to assess either the students understanding of the subject matter or their application of the knowledge they have acquired. Rowntree further describes the framework of assessment under five headings or dimensions. Namely: Why assess
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Week 4 Learning Team Reflection Discuss the Week Four objectives. Your discussion should include the topics you feel comfortable with, any topics you struggled with, and how the weekly topics relate to application in your field. Write a 350- to 700-word summary of the team’s discussion. 4.1 Analyze the influence of company structure on behavior. We have now found out from Robbins and Judge (2011) that company structures determine the manner in which job jobs are
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