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Prediction Interval
We would like to construct a prediction interval around which would contain the actual Y.
If n ≥ 30, ± Zse would be the interval, where Z is the appropriate Standard Normal Value.
If n < 30, ± tse would be the interval, where t is the appropriate t value (with n - 2 degrees of freedom).
In the case of the pharmaceutical firm, at X = Rs.1 crore the 90% prediction interval is 22 ± 2.132 x 3.24.
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Modify your formulas from (1) to compute the price at time 0 of an American put option with the same contract speci cations in the binomial model. Report the price of the American
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Need help on my maths assignment
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The quick method for a confidence interval for a proportion uses as an approximation for a 95% confidence interval. The margin of error in this case is slightly larger tha
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