Find the distribution function and the pdf

Assignment Help Basic Statistics

Reference no: EM13114636

A sum of $50,000 is invested at a rate R, selected from a uniform distribution on the interval (0.03, 0.07). Once R is selected, the sum is compounded instantaneously for a year so that X= 50000 e^R dollars is the amount at the end of that year.

a) Find the distribution function and the p.d.f. of X.

b) Verify that X = 50000e^R is defined correctly if the compounding is done instantaneously.

Reference no: EM13114636

Questions Cloud

What measurement guidelines is each industry : What measurement guidelines is each company using to verify its strategic effectiveness? Explain how effective are the measurement guidelines that each company is using?

Explain an organization that delivers superior value : Name and explain an organization that delivers superior value. Do you think organizations that deliver value have different characteristics from those whose sole focus is on profit? Explain.

Sophisticated statistical analysis-simple analysis : Is it acceptable for a researcher to refrain from reporting the use of highly sophisticated statistical analysis and opt for simpler forms of analysis? Explain.

Define in an enzyme catalysed reaction : In an enzyme catalysed reaction, if the activation energy of the transition state is decreased, which of the following will occur?

Find the distribution function and the pdf : Once R is selected, the sum is compounded instantaneously for a year so that X= 50000 e^R dollars is the amount at the end of that year. Find the distribution function and the p.d.f. of X.

Liquidity and debit ratios in finanical management : What is the difference between liquidity and debt (leverage) ratios? What is the difference between return on assets and return on equity from the perspective of an investor? A manager?

How would you handle the response : Upon resonding to a 2am domestic transportation mishap, your hazmat team determines that a liquefied compressed gas is leaking from a 5lb steel cylinder.

Explain quality cost data for a manufacturer : Explain What conclusions can you make with respect to quality given the cost of quality information presented?

Find expected amount of time that appointment spends : Assuming that both patients are on time, find the expected amount of time that the 1:30 appointment spends in the doctor's office.

User Account

All Pages