Recent content by DrAnthonyRodriguez

Dear J58, Thank you for your trply! Simple, but at 74 my brain is a bit slow. Dr. T

Hi! This is not a homework problem. I have the following equation: (S - P) * (1 - X) = P * X Where S is the spread (i.e., the difference) between two strike prices in dollars, P is the premium received for an option in dollars, and X is the probability of success. I need to re-write the...

Dear Staassis, Thank you for your reply! You are right. I worked out a few hypothetical examples and measuring the risk-adjusted return is a better method. Dcctor T

Hi! This is not a HW problem. To rank stocks based on their EPS growth rate, I plan to do the following: 1 - Calculate the stocks' EPS quarterly growth rate versus the prior year (to reckon with seasonality) for the last 3 years (4 years of data) and calculate the 3-year arithmetic average...

Hi! This is not a HW problem. For the purpose of trading stock options, I am trying to learn statistics on my own. A stock is currently selling at $50 . The terms of a call option specify that the stock will raise to $70 in 18 weeks. That is, the stock is expected to increase about 2%/week...

Dear Staassis, Thank you for your reply. I started with simple linear regressions, before getting into more sophisticated analyses like ARIMA, in order to develop an understanding of the basics. FYI, 90 observations was a number picked at random. I agree that Excel is not the ultimate tool...

Dear Staassis, Thank you for your reply. It's not a HW problem; I am learning stats on my own. I looked at CIs and PIs but I am looking for the 95% probability of a value higher than X, not the probability of a range. Tony

Hi! A stock is selling at $50 now. Based on a 90-day linear regression (i.e., 90 historical periods), 80 days from today, the stock will be selling at $56. The standard error is 4. What is the 95% probability that the stock will be selling at least at $59? Using Excel, how is the 95%...

Dear HLSmith, Thank you for your reply. Do you mean using Excel's Analysis ToolPak? Doctor T

Dear Stats Fan, Thank you for your reply. Yes, R is one alternative. However, I avoid command-driven interfaces. Doctor T

Hi! I am looking for a free or fairly inexpensive software package to perform simple linear regression (time series) and exponential smoothing tests. I need to test about 100 data points (i.e., years). Suggestions? Thank you! Doctor R

Hi! A list of books, tutorials, YouTube videos, chat forums, and online calculators is found at: http://www.ZeteticLibrary.com/help.htm Dr. T

Hi! Say there are ten before and after pairs, which yield ten non-zero differences. Therefore, n=10. The null hypothesis is that the difference in medians is 0 (H0: M-after - M-before = 0). The one-tail alternative hypothesis is that the median-after is higher than the median-before (H1...

Hi! Say there is a deck of 100 cards: Red w/ numbers = 40 Red w/ figures=15 Black w/ numbers=35 Black w/ figures=10 The only information known is that 55% of the cards are red and 45% of the cards are black and 75% of the cards have numbers and 25% of the cards have figures. That is the...

SAMPLES The sample mean is an estimate of the population mean. And, the standard error (SE) of the sample mean -- s/SQRT(n) -- is a measure of the variability of the estimate. SAMPLING DISTRIBUTIONS The mean of a sampling distribution of a few sample means (i.e., “the mean of the few...