8002 무료 덤프문제 온라인 액세스

In statistical hypothesis tests, 'Type I error' refers to the situation in which...

• A.The null hypothesis is accepted when in fact it should have been rejected
• B.Both null hypothesis and alternative hypothesis are rejected
• C.Both null hypothesis and alternative hypothesis are accepted
• D.The null hypothesis is rejected when in fact it should have been accepted

The Newton-Raphson method

• A.is based on Taylor series and uses the first derivative
• B.does provide an error bound along with every iteration
• C.is based on finding a middle point between left and right end of the search interval
• D.can be used for continuous but not differentiable functions

An operational risk analyst models the occurrence of computer failures as a Poisson process with an arrival rate of 2 events per year. According to this model, what is the probability of zero failures in one year?

• A.0.50
• B.0.02
• C.0.25
• D.0.14

In a 2-step binomial tree, at each step the underlying price can move up by a factor of u = 1.1 or down by a factor of d = 1/u. The continuously compounded risk free interest rate over each time step is 1% and there are no dividends paid on the underlying. Use the Cox, Ross, Rubinstein parameterization to find the risk neutral probability and hence find the value of a European put option with strike 102, given that the underlying price is currently 100.

• A.6.31
• B.4.18
• C.5.19
• D.5.66

For each of the following functions, indicate whether its graph is concave or convex:
Y = 7x2 + 3x + 9
Y = 6 ln(3x)
Y = exp(-4x)

• A.concave, convex, convex
• B.convex, concave, concave
• C.convex, convex, concave
• D.concave, concave, concave