develop simulation model-compute average amount, Basic Statistics

Assignment Help:

Bob Smith recently completed his MBA and accepted a job with a computer company. To ensure that his retirement is comfortable, he intends to invest $3,000 of his salary into a tax shelter retirement fund at the end of each year. Bob is not certain what the rate of return is, but knows that it is normally distributed with a mean of 13% and a standard deviation of 2%. If Bob is 30 years old, how much money should he expect to have when he is 60?

(a)   Develop a computer simulation model to determine how much will be in his retirement fund after 30 years.

(b)   Use a data table to perform 200 runs of the simulation model developed in part (a).

(c)   Compute the average amount the fund will be worth using the results from the 200 runs in the data table.

(d)   Obtain a histogram for the 200 run results. Use at least 7 class intervals.

(e)   Based on the simulation results in the data table, estimate the probability that the fund will be more than $750,000 and the probability that the fund will be more than $1,000,000.

 


Related Discussions:- develop simulation model-compute average amount

Linearity, The weight in Kg for each person was matched to their intake of ...

The weight in Kg for each person was matched to their intake of fat per day in Grams.  9 people were selected with the following results. Weight (Xi)         Fat (Yi) 45

Statistic using IBM SPSS, Comment on the sample size, measure of central te...

Comment on the sample size, measure of central tendency, dispersion, kurtosis, and skewness.Use the z -scores in the book (or calculate your own) to provide this response. What doe

Accounting for inflation, Accounting for inflation Inflation sales is a ter...

Accounting for inflation Inflation sales is a term reporting a range of sales systems designed to correct problems that comes from traditional cost sales in the use of inflation. I

State unemployment tax, State unemployment tax Condition government aut...

State unemployment tax Condition government authorities provide lack of employment solutions and figure out conditions lack of employment tax amount for each company. (Some not

Hypothesis and statistical test, College administrators across the country...

College administrators across the country have become very concerned after noticing an increase in the number of deaths in college students from binge drinking.  Several psychologi

Determine the approximate vertical reactions, 1. Use the portal method to d...

1. Use the portal method to determine the approximate vertical reactions. Circles represent pinned connections. 2. A steel 2" x 3" rectangular bar is 9' long (E = 29,000ksi

What is inference, Q. What is Inference? Ans. Inference is the pro...

Q. What is Inference? Ans. Inference is the process of deriving conclusions based on facts or premises. We often make inferences based on the results of statistical studi

Confidence interval for the mean.., How to start solving the null hypothesi...

How to start solving the null hypothesis that the mean daily caloric intake in the adult population of a rural county is 1800 calories. A sample of 400 had a mean of 1785 and SD 24

Joy, Ask questio How many women must be randomly selected to estimate the m...

Ask questio How many women must be randomly selected to estimate the mean weight of women in one age group? We want 90% confidence that the sample mean is within 3.7 lbs of the po

Estimate the cost of producing, Consider the manufacturing system presented...

Consider the manufacturing system presented in the article by Yu and Bricker (1993). The management would like to purchase new machine tools more reliable and more high accuracy

Write Your Message!

Captcha
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