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Let the annual effective rate of interest be 0.04. Find the present value of a perpetuity under which a payment of 8 is made at the end of the first year, 9 at the end of the second year, increasing until a payment of 25 is made at the end of the 18th year, and thereafter payments are level at 25 per year forever.
How would you expect the mean for these data to differ from what you found in the previous exercise?- Check your answer to part (a) using the One-Variable Statistical Calculator applet.
To decide whether or not to proceed developing a health food concept, a company carried out a concept test.
Use what you have learned about hypothesis testing to answer the following questions.
What is the probability that at most 20 people liked the movie? b. What is the probability that at least 25 people liked the movie
What is the expected value for this random variable? Answer to one decimal place if necessary.
the number of lightning strikes on a square kilometer of open ground in a year has mean 6 and standard deviation 2.4.
When only the value-added time is considered, the time it takes to build a laser printer is thought to be uniformly distributed between 8 and 15 hours.
A glass jar contains 6 red, 5 green, 8 blue and 3 yellow marbles. If a single marble is chosen at random from the jar, what is the probability of choosing a red marble? a green marble? a blue marble? a yellow marble?
Suppose Alden wrote 400 policies for the forthcoming weekend. Compute the probability that exactly two claims will be filed using the equation for Poisson Probability.
Compute the NPV for each project, and compute the incremental IRR. Compare and explain why NPV always gives the correct decision.
Let Z1, Z2,... be iid random variables with density f . Suppose that P(Zi > 0) = 1 and that λ = limx↓0 f (x) > 0. Let Xn = n min{Z1,..., Zn}.Show that Xn """ Z where Z has an exponential distribution with mean 1/λ.
A consumer group is testing the gas mileage of three different models of cars. Several cars of each model were driven 500 miles and the mileage was recorded as follows.
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