There are two risky shares, where you have calculated the means, and the correlation coefficient of returns between the two shares. Sketch the mean-variance efficient frontier for portfolios of the two shares when the correlation coefficient is +1 and 0 respectively. Explain the shape of the frontier using algebra.

Q: Suppose a population has three values 13, 17 and 24. What is its variance?

A: Given: n=3 The mean of the data is obtained as below: Mean=∑xn=13+17+243=543=18 The mean is 18.

Q: Find the variance of X

A: We first have to find the value of a. We know that the total probability is 1. So,…

Q: . Suppose that the average amount dispensed in a particular sample of 35 bottles is 7.91 ounces with…

A:

Q: To obtain a maximum amount of variance, an item ought to have a degree of difficulty of what?

A: To obtain a maximum amount of variance an item ought to have a degree of difficulty is the number of…

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A: Given query is to estimate the correlation of the scatter plot.

Q: The population data has a correlation of .60. What is the probability that you will get a sample…

A: Introduction: Suppose r is the sample correlation coefficient between two variables, based on a…

Q: For a data set of weights (pounds) and highway fuel consumption amounts (mpg) of four types of…

A:

Q: From past records a firm has noted that the average time its employees take for tea break is 15…

A: Here, µ = 15, σ2 = 4, and n = 50. It is given that the new employee joins the firm and over 50 tea…

Q: How the squared curvilinear correlation, η2, reflects the proportion of variance?

A: In analysis of variance, either for regression model or for design, if the proportion of variance is…

Q: as sample size gets smaller, what happens to the magnitude of the correlation necessary for…

A: Correlation :  Correlation describes the relationship between two quantitative variables .…

Q: The variables height and weight could reasonably be expected to have a positive linear correlation…

A: A negative correlation means that two variables have an opposite relationship-as one variable…

Q: Give examples of two variables that have a perfect positive linear correlation and two variables…

A: We know that Perfect positive linear correlation: When correlation coefficient value is +1 then the…

Q: Why does the squared curvilinear correlation referred to as a partial η2 for that component?

A: The  partial eta measures the strength of a non-linear or curvilear  association. Actually it is a…

Q: How can you verify whether the linear correlation between two variables in a scatterplot is…

A: Correlation:Correlation a measure which indicates the “go-togetherness” of two data sets. It can be…

Q: Give and explain one way to find minimum variance unbiased estimator.

A: Minimum variance unbiased estimator (MVUE):An unbiased estimator that has lower variance than any…

Q: Consider two assets, X and Y, with expected returns X = 14.5% and Y = 13.8% and with standard…

A: Mean return of Portfolio X, µx = 14.5 Standard Deviation of Portfolio X, σX = 6.3 Mean return of…

Q: True or False? The sample correlation coefficient is equal to the covariance of x and y divided by…

A: Spearman’s correlation coefficient: The correlation between x and y is given as follows:

Q: In bivariate data, we sometimes notice that one of the quantities increases (1, 2, 3...) while the…

A: The direction of the relationship of correlation can be a positive relationship or a negative…

Q: At What extend the below is true? Two variables with a correlation of 0.3 have a stronger linear…

A: Introduction: The correlation coefficient, r measures the strength of linear association between two…

Q: A manufacturer of cigarettes wishes to test the claim that the variance of the nicotine content of…

A: Given, The degrees of freedom is obtained as- The hypothesis to be tested here is- This is a…

Q: Why do we use partial correlations?

A: Here we need to tell the purpose to use the partial correlation.

Q: if the correlation coefficient r is equal to 0.568, find the coefficient of nondetermination.

A: Correlation coefficient quantifies the strength and direction of relationship between variable. The…

Q: A beverage company has two bottling plants in different parts of the world. To insure uniformity in…

A: The given data is, Plant A Plant B 12.9 13.3 14.2 13.7 13.7 13.4 13.2 13.5 13.8 12.6…

Q: If a set of data is normally distributed with a mean of 20 and a variance of 16, a z-score of -3.8…

A: Let raw score is X.  Then Z Score is given by, Z= (X- mu)/sigma Where mu is mean  And sigma  is…

Q: A Pearson correlation of r= -1.00 means that all the data points fit perfectly on a straight line.…

A: A negative correlation means that high values of one variable are associated with low values of the…

Q: For a data set of weights (pounds) and highway fuel consumption amounts (mpg) of four types of…

A: The hypothesis is, Null hypothesis: There is no linear correlation between the two variables.…

Q: What are the limitations of a simple linear correlation model that has only one independent…

A: Statisticians use correlational analysis to study how two sets of data are related.

Q: Suppose we want to examine the relationship between planned pregnancy rates and professional single…

A: Mediation correlation: The mediator correlation mediates the relationship between the dependent and…

Q: Mutual fund A claims that it had better performance than mutual fund B in terms of volatility over a…

A: To test :   H0 : volatility of mutual fund A is equal to that of mutual fund BvsH1 : volatility of…

Q: The accounting department analyzes the variance of the weekly unit costs reported by two production…

A: See the handwritten solution

Q: Where does the spurious correlation exist?

A: In day-to-day life, we may all come across some situation where 2 factors are related. For example…

Q: If the assumption of constant variance is violated, you can transform the response data True or…

A:

Q: A construction manager has determined the schedule Variance (SV) of a project is $5000 and the…

A: Schedule variance (SV) and schedule performance index (SPI) are two earned value calculations that…

Q: The correlation coefficient betweem anxiaty and exam scorea of the students is -0.6 .so what is the…

A: Here correlation coefficient is negative. Therefore as exam score increases anxiaty decreases.  60℅…

Q: The accounting department analyzes the variance of the weekly unit costs reported by two production…

A:

Q: filling line. The machine that dispenses salad dressings is working properly when 8 ounces are…

A: Here one sample t test is applicable

Q: Identify the two procedures that can be used to compute the Spearman correlation.

A: Spearman's rank correlation can be done in two procedures; The case where there are no ties The…

Q: jects obtained by one of the students was wrongly taken as 7 instead of 9. Find the correct…

A: Here use formula of rank correlation coefficient

Q: If you have 10 variables when computing correlation coefficients how many unique coefficients will…

A: It is provided that there are a total of 10 variables for which the correlation coefficients are…

Q: What information is provided by rz? What are the primary uses of partial correlations?

A: a)  R2  (R-squared ) :R2 can be interpreted as a simple r2 ,a propotion of variance expalined…

Q: If the correlation between two variables is close to Zero, the linear association between the…

A: The correlation coefficient r measures the strength and direction of the linear relationship between…

Q: Once the correlation coefficient is known, how can we find the amount of the shared variance?

A: Concept:  correlation coefficient measures the degree of linear relationship between two variables.

Q: how do I find the variance?

A: Population variance is the measure of variability of the data that is how far away our data points…

Q: What is the value of the correlation coefficent, r? Is the strength of the linear relationship…

A: Given that, Y = 0.205x - 336 R2 = 0.981

Q: Students took two parts of a test, each worth 50 points. Part A has a variance of 25, and Part B has…

A: From the provided information, Variance of part A = 25 The standard deviation of part A = √25 = 5…