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A transition matrix for a four-state homogeneous Markov chain is given by
At time 0, the process is in state 0. A contract provides for payments at the end of the year of the first transition to state 3 from any other state, provide this occurs within 4 years. The amount of the payment is 100 if the transition is from state 0, 200 if the transition is from state 1, or 300 if the transition is from state 2. Level net annual premiums are paid beginning at time 0, and continuing until the time of transition to state 3. The interest rate is a constant 5%.
(a) Find the annual premium.
(b) Find the reserve at time 2, assuming the process is at that time in (i) state 0, (ii) state 1, (iii) state 2.
given are five observations collected in a regression study on two variables.x12691320y1718926231. what percentage of
Should the hypothesis be accepted at the 1% level of significance that the population means are the same for each (a) Octane of gasoline? (b) Type of car?Table Miles per Gallon for Each of 4 Octanes
What type of statistical test best assesses the relationship between job satisfaction and level of stress and what test would be appropriate to determine whether the difference between men and women is real or due to chance variation?
Three scholarships are available for students. Their values are: $2,000, $2,400, $3,000. Twelve students have applied and no student may receive more than one scholarship. Assume all twelve students are in needs of the funds, how many different..
Determine a 95% confidence interval for the mean efficiency of a given batch of motors. If we want to cut the confidence interval by 1/3, how many motors should be tested?
The bank wants to find out the waiting time of their customers during the Friday evening hours from 5pm to 8pm. Using the data in ungrouped form, compute the Standard Deviation, using the computational formula.
Consider a liter of 5 puppies (3 brown/2 black). Draw a probability tree indicating the probabilities for selecting 3 puppies without replacement? What is the probability that I will select 3 brown puppies? 1 brown and 2 black puppies? At least 1 ..
the television show pretty betty has been successful for many years. that show recently had a share of 16 meaning that
In a class, the grade of a student on an exam is an RV with expectation 60 and variance 16. If the class average is between 55 and 65, with a probability greater than or equal to 0.9, determine the number of students that have taken the exam.
A researcher used stepwise regression to create regression models to predict Birth Rate (births per 1,000) using five predictors: Life Exp (life expectancy in years).
1. The local county is considering a budget proposal that would reallocate funding to renovate the city pools. A survey is conducted to measure public opinion of the proposal. A total of 200 individuals responded to the survey. Fifty of the respon..
Comparing the lifetimes of two brands of penlight batteries, a researcher has randomly selected 10 batteries of brand A and 10 of brand B, then subjected each battery to the same usage test. Given the lifetimes listed below and using the 0.05 lev..
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