3. Now the client wants to know if a SPREAD of USD 50 / bbl signals a high ora low WTI price. Your client very much believes that a high WTI price is here tostay. Calculate the odds that this SPREAD signals a high WTI price. Be sure toshow all of your calculations and provide an interpretation of your findingsfor the client. Provide your answer to the question directly below along withthe reasons for the calculations you made along with your one lineinterpretation. Be sure to show all of your work in your notebook. Take aphoto of the page in the notebook and upload it below.Your answerSPREAD 50.0000WTIsigma N(y,mu,sigma)7.54707.5470hmuPr(h)H_lowH_high4545.99000.04590.25005547.65840.05040.7500mu_SPREAD49.46sigma_SPREAD8.67mu_WTIsigma_WTIrho_SPREAD_WTI65.7925.600.49251variablemean WTIvariablemean UNLmin49.44min2.2925%25%50%75%66.702.7671.2050%2.8875.9475%2.99max99.13max3.59IQR0.25 fence0.75 fence9.23IQR0.2352.860.25 fence2.4189.780.75 fence3.34mean71.33mean2.88sd6.92sd0.17mad5.52mad0.14skewness0.06skewness0.04kurtosis2.97kurtosis3.00count10000count10000crediblecredible99%99%intervalinterval0.5%54.090.5%2.4499.5%89.4599.5%3.33

Answered: Image /qna-images/answer/2d0049f0-c85f-48a5-8ad8-9f98a5aec3db.jpg

3. Now the client wants to know if a SPREAD of USD 50 / bbl signals a high or a low WTI price. Your client very much believes that a high WTI price is here to stay. Calculate the odds that this SPREAD signals a highWTI price. Be sure to show all of your calculations and provide an interpretation of your findings for the client. Provide your answer to the question directly below along with the reasons for the calculations you made along with your one line interpretation. Be sure to show all of your work in your notebook. Take a photo of the page in the notebook and upload it below. Your answer SPREAD 50.0000 sigma N(y,mu,sigma) Pr(h) 7.5470 7.5470 WTI mu H_low H_high 45 45.9900 0.0459 0.2500 55 47.6584 0.0504 0.7500 mu_SPREAD 49.46 sigma_SPREAD 8.67 mu_WTI 65.79 sigma_WTI rho_SPREAD_WTI 0.49251 25.60

3. Now the client wants to know if a SPREAD of USD 50 / bbl signals a high or a low WTI price. Your client very much believes that a high WTI price is here to stay. Calculate the odds that this SPREAD signals a highWTI price. Be sure to show all of your calculations and provide an interpretation of your findings for the client. Provide your answer to the question directly below along with the reasons for the calculations you made along with your one line interpretation. Be sure to show all of your work in your notebook. Take a photo of the page in the notebook and upload it below. Your answer SPREAD 50.0000 sigma N(y,mu,sigma) Pr(h) 7.5470 7.5470 WTI mu H_low H_high 45 45.9900 0.0459 0.2500 55 47.6584 0.0504 0.7500 mu_SPREAD 49.46 sigma_SPREAD 8.67 mu_WTI 65.79 sigma_WTI rho_SPREAD_WTI 0.49251 25.60

Calculus For The Life Sciences

2nd Edition

ISBN:9780321964038

Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.

Chapter12: Probability

Section12.2: Introduction To Probability

Problem 52E

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