Independent normal random variables with expected value

Assignment Help Basic Statistics
Reference no: EM132150416

Suppose that you have $5000 and you are contemplating the purchase of two investments, IBM and Walgreen's. One year from now, IBM can be sold at $ X per dollar invested, and Walgreen's can be sold for $ Y per dollar invested. You regard X and Y to be statistically independent Normal random variables with expected value 1.1 and variance 0.04. (a) If you put all your money in IBM, what is the probability that you will be able to sell it one year from now at a positive profit? (b) If you split your money evenly between the two investments, what is the probability you will be able to sell your portfolio a year from now at a positive profit?

Reference no: EM132150416

Questions Cloud

What is the probability that the sample contains : What is the probability that the sample contains more than five students who do not live in the dormitories?
What is the standard deviation : Heights of women follow a normal distribution with mean µ=63.6 inches and standard deviation of s=2.5 inches.
Conduct a customer satisfaction survey : A large furniture retailer wants to conduct a customer satisfaction survey. Customers are divided into groups based on the amount of money
Factory to manufacture the new product has been constructed : A factory to manufacture the new product has been constructed with enough capacity to meet sales demand 90% of the months. How much capacity does the factory ha
Independent normal random variables with expected value : Suppose that you have $5000 and you are contemplating the purchase of two investments, IBM and Walgreen's.
What percent of adult males are shorter : Adult male heights X have N(70", 3.3") a.) What percent of adult males are shorter than 63"?
How many selections contain 3 defective : Eight calculators are chosen at random to be sent to a local high school. How many selections contain 3 defective?
How positive psychology practices inspire self-reflection : What happened to your thoughts and feelings after understanding what you learned or how did your peers and instructor influence your thoughts and behavior
Find the expectation and standard deviation of the number : Find the expectation and standard deviation of the number of securities in your portfolio that gained value.

Reviews

Write a Review

Basic Statistics Questions & Answers

  Statistics-probability assignment

MATH1550H: Assignment:  Question:  A word is selected at random from the following poem of Persian poet and mathematician Omar Khayyam (1048-1131), translated by English poet Edward Fitzgerald (1808-1883). Find the expected value of the length of th..

  What is the least number

MATH1550H: Assignment:  Question:     what is the least number of applicants that should be interviewed so as to have at least 50% chance of finding one such secretary?

  Determine the value of k

MATH1550H: Assignment:  Question:     Experience shows that X, the number of customers entering a post office during any period of time t, is a random variable the probability mass function of which is of the form

  What is the probability

MATH1550H: Assignment:Questions: (Genetics) What is the probability that at most two of the offspring are aa?

  Binomial distributions

MATH1550H: Assignment:  Questions:  Let’s assume the department of Mathematics of Trent University has 11 faculty members. For i = 0; 1; 2; 3; find pi, the probability that i of them were born on Canada Day using the binomial distributions.

  Caselet on mcdonald’s vs. burger king - waiting time

Caselet on McDonald’s vs. Burger King - Waiting time

  Generate descriptive statistics

Generate descriptive statistics. Create a stem-and-leaf plot of the data and box plot of the data.

  Sampling variability and standard error

Problems on Sampling Variability and Standard Error and Confidence Intervals

  Estimate the population mean

Estimate the population mean

  Conduct a marketing experiment

Conduct a marketing experiment in which students are to taste one of two different brands of soft drink

  Find out the probability

Find out the probability

  Linear programming models

LINEAR PROGRAMMING MODELS

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd