# Search results

1. ### Simple Equation

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

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...
3. ### Ranking stocks based on EPS growth rates

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
4. ### Ranking stocks based on EPS growth rates

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...
5. ### Testing a Hypothesized Mean for Trading Stock Options

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...
6. ### Probability of regression result

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...
7. ### Probability of regression result

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
8. ### Probability of regression result

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%...
9. ### Software for Simple Linear Regression

Dear HLSmith, Thank you for your reply. Do you mean using Excel's Analysis ToolPak? Doctor T
10. ### Software for Simple Linear Regression

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

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
12. ### FREE Statistics Help

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

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...
14. ### Bayes's Theorem

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...
15. ### Questions about the standard error

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...
16. ### Questions about the CLT

The Central Limit Theorem (CLT) involves taking repeated samples of size n from a population. That is, the process involves two things: the number of samples and the sample size. I am trying to understand the relationship between these two things (the number of samples and the sample size)...
17. ### Type of Discrete Distribution

What type of discrete probability distribution is the probabilities of the sum of the outcomes of an infinite number of dice rolls? The probabilities are: P(2)=1/36, P(3)=2/36, P(4)=3/36, ..., P(12)=1/36 Thank you. Dr. T
18. ### Intervals for a grouped relative frequency distribution

What are the intervals of a grouped relative frequency distribution of a Z distribution? The range of the Z distribution is minus infinity to plus infinity and the relative frequencies are 0.5, 2, 13.5, 34, 34, 13.5, 2, and 0.5. Thank you! Dr. T