SPSS Questions - USE SPSS ONLY WHEN INSTRUCTED 1. New economic firms in Canada have 5 years survival rate of 36%. That means the probability that a new economic firm stays in business for 5 years is 0.36. The survivals of firms are independent from each other. Use the relative frequencies to estimate the probability of survival of a new firm in five years. This requires observing a number of new firms within five years of their entry to business and computing the relative frequency for the new firms which survived during the first 5 years. Using SPSS, simulate the experiment of observing the survival of new firms. Let I denote the event that a new firm survives for 5 years from its business entry. Consider n = 10; 100; 5,000 and 10,000 simulations. Note: n represents the number of firms from which some will survive in the first 5 years, and some won't. a. Use the relative frequency method to estimate P(1) for n = 10. b. Use the relative frequency method to estimate P(I) for n = 100. c. Use the relative frequency method to estimate P(I) for n = 5000. d. Use the relative frequency method to estimate P(1) for n = 10000. e. Compare your results from these simulations and identify which of the point estimates is closest to the true probability of 5 years survival of a new firm. Explain