Assume That You Plan to Use a Significance Level Of \alpha

question 107

Multiple Choice

Assume that you plan to use a significance level of $\alpha = 0.05 \text { to test the claim that } \mathrm { p } _ { 1 } = \mathrm { p } _ { 2 }$ , Use the given sample sizes and
numbers of successes to find the pooled estimate $\overline { \mathbf { p } }$ . Round your answer to the nearest thousandth.
- $$\begin{array} { l l } \mathrm { n } _ { 1 } = 100 & \mathrm { n } _ { 2 } = 100 \\\hat { \mathrm { p } } = 0.19 & \hat { \mathrm { p } _ { 2 } } = 0.16\end{array}$$

• A) 0.219
• B) 0.350
• C) 0.418
• D) 0.175

Understand the concept and application of bootstrap resampling including its purpose and how it's performed.

Calculate distinct possible resamples for a given set of measurements.

Compute the probability of observing specific resamples.

Understand and apply the percentile method for computing bootstrap confidence intervals.

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Definitions:

Diversified Away

The risk that can be reduced or eliminated in a portfolio through investments in a variety of assets, thus not tied to the performance of a single investment.

Market Risk

The risk of losses in positions arising from movements in market prices.

Firm-specific Risk

The portion of an asset's risk that is attributable to the company's individual factors, uncorrelated with general market movements.

Nonsystematic Risk

The part of an investment's risk that is specific to the investment, unrelated to the market's overall movements.