Question 1c In order to create the criteria for the committee we have to look at what they want from the project. Most businesses and organisations are in business to make a profit‚ however the committee has different aims and objectives compared to a normal business or organisation. They need to weight up the options of each proposal and decide which best relates to their aims and objectives. When the committee is considering which proposal to go with they should consider the following categories
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Assignment for Week -2 Chapter 5 (5 - 9) Bond Valuation and Interest Rate Risk Bond L Bond S INS = $100 INS = $100 M = $1‚000 M = $1‚000 N = 15 Years N = 1 Year a) 1) rd = 5% VBL = INT/ (1 + rd)t + M/ (1 + rd)N =INT [1/rd – 1/ rd(1 + rd)N ] + M/ (1 + rd)N =$100 [1/0.05 – 1/ 0.05(1 + 0.05)15] + $1‚000/ (1 + 0.05)15 =$1040 + $480.77 = $1518.98
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09 Expected value = E(x) = ∑ x*P (x) = 1.03 Variance = E(x2) – [E(x)]2 = 1.09-1.03*1.03 = 0.0291 c. y 1 2 3 4 5 Total P(y) 0.96463 0.03330 0.00149 0.00009 0.00002 1.00 d. y 1 2 3 4 5 Total P(y) 0.96463 0.03330 0.00149 0.00009 0.00002 1.00 y*P (y) 0.96463 0.06660 0.00446 0.00034 0.00008 1.04 y2*P (y) 0.96463 0.13319 0.01337 0.00138 0.00041 1.11 Expected value = E(x) = ∑ x*P (x) = 1.04 Variance = E(x2) – [E(x)]2 = 1.11-1.04*1.04 = 0.0284 e
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A population of measurements is approximately normally distributed with mean of 25 and a variance of 9. Find the probability that a measurement selected at random will be between 19 and 31. Solution: The values 19 and 31 must be transformed into the corresponding z values and then the area between the two z values found. Using the transformation formula from X to z (where µ = 25 and σ √9 = 3)‚ we have z19 = (19 – 25) / 3 = -2 and z31 = (31 - 25) / 3 = +2 From the area between z =±2 is 2(0
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Executive Summary The purpose of this report is to analyze customer’s profitability to provide relevant information for Internet strategy in Pilgrim Bank. To get a conclusion from the disagreements between charging online banking fees and offering customers incentives to use online banking‚ I obtained relevant data and compared online and offline customers’ profitability. Since only comparing balance level will miss some important information‚ such as‚ the cost of serving individual customers‚ therefore
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Problems on Risk and Return 1) Using the following returns‚ calculate the arithmetic average returns‚ the variances and the standard deviations for X and Y. Year X Y 1 8% 16% 2 21 38 3 17 14 4 -16 -21 5 9 26 2) You bought one of the Great White Shark Repellant Co’s 8 per cent coupon bonds one year ago for $1030. These bonds make annual payments and mature six years from now. Suppose you decide to sell your bonds today ‚when the required return on the bonds is 7 per cent
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Fitness Center Report With the launch of AJ’s Fitness and as their current MBA intern‚ I was tasked with analyzing the results of a recent survey that was given the fitness center’s current members. Of the 1‚833 members surveyed‚ we receive 133 usable responses. The following report details an analysis of the results from the membership survey‚ as well as some suggested changes that can be implemented by new management to increase overall membership satisfaction. Overall Satisfaction &
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Investment Science Chapter 3 Dr. James A. Tzitzouris 3.1 Use A= 1− rP 1 (1+r)n with r = 7/12 = 0.58%‚ P = $25‚ 000‚ and n = 7 × 12 = 84‚ to obtain A = $377.32. 3.2 Observe that since the net present value of X is P ‚ the cash flow stream arrived at by cycling X is equivalent to one obtained by receiving payment of P every n + 1 periods (since k = 0‚ . . . ‚ n). Let d = 1/(1 + r). Then ∞ P∞ = P k=0 (dn+1 )k . Solving explicitly for the geometric series‚ we have that P∞ = Denoting
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The Potential of Bamboo(Bambusa vulgaris) Shoot as Pancit Bautista National High School Bautista‚ Pangasinan Werner J G Junio Proponent Mrs. Febren Velasquez Research Adviser i TABLE OF CONTENTS Page Project Title. . . . . . . . . . . . . . . . . . . i Table of Contents. . . . . . . . . . . . . . . . . ii CHAPTER 1. THE PROBLEM: RATIONALE AND BACKGROUND Background of the Study. . . . . . . . . . . . . . 1 Conceptual Framework. . . . . . . . . . . . . . .
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increases 3 points‚ the median will become __. a. 21 b. 21.5 c. 24 d. Cannot be determined without additional information. e. none of these 3. If you are told a population has a mean of 25 and a variance of 0‚ what must you conclude? a. Someone has made a mistake. b. There is only one element in the population. c. There are no elements in the population. d. All the elements in the population are 25. e
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