number i.e. 7‚500. Therefore‚ 4‚728 = 5.16 . Solving for the unknown = (5.16 x 7500)/4728 = 8.185 Therefore n = 67 and the mean of the population is 82‚636 + (4728/2) = 85‚000. 1|Page 1c (1) Hypothesis testing is used to determine the probability that a specified hypothesis is true. The assumption in this case that the mean salary of the population is 85‚000‚ is called the null hypothesis (H0). The alternative hypothesis (H1) is a claim to be
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Estimated Future Cash Inflows – Undiscounted (in $ millions) Option Probability of Occurring 2016 2017 2018 2019 2020 Total Probability Weighted A 10% $1.0 $.9 $.7 $.7 $.7 $4.0 $0.4 B 20% .6 .8 1.1 1.6 1.9 6.0 $1.2 C 70% $1.0 $3.0 $0 $0 $0 $4.0 $2.8 Total 100% $4.4 Since there are three different operating scenarios that will impact the recoverability test‚ an estimated future cash inflow weighted by probability of occurrence would be appropriate to use. For this method‚ the expected
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Based on present test data‚ however‚ the typical user has the following probabilities of achieving different performance results and cost savings (relative to the current unit) in the first year of operation (assume these annual cost savings would escalate 5% per year thereafter; a five-year analysis period is used; the MARR=18%‚ and the net market value after five years is 0): |Performance Results |Probability |Cost Savings in Year One
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from an email list in 2009" a joint event? It neeeds to fit both criteria‚ 3 or more clicks and occur in the year 2009 4.9 Referring to the contingency table in Problem 4.8‚ if a large online retailer is selected at random‚ what is the probability that a. you needed three or more clicks to be removed from an email list? P = 46/200 = 23% b. you needed three or more clicks o be removed from an email list in 2009? P = 39/200 = 19.5% c. you needed three or more clicks to be removed
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QUADRILAERALS QUADRILATERALS – Quadrilateral is a union of four line segments determined by four distinct co-planar points of which no three are collinear and the line-segment intersect at end points. Quadrilateral ABCD is denoted by □ABCD. PARTS OF QUADRILATERAL: (□ABCD) Points A‚ B‚ C‚ D are called the vertices of □ABCD AB‚ BC‚ CD and AD are called the sides of ABCD AC‚ BD are called Diagonals of ABCD A‚ B‚C and D are the four angles of ABCD A Quadrilateral
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Kohler Case Study I. Enterprise Value of Kohler Tax Rate = 34% Debt to Value = .464 or 681‚038/1‚467‚373 Debt to Equity = .536 or 786‚335/1‚467‚373 Risk Free Rate = 20 yr government bond = 6.0% Market Return on Debt = 6% Market Return on Equity = 2002 Net income/ Average Stockholder’s equity 1998-2002 108‚229/924‚800= 11.7% WACC: (1-.34)*(.06)*(.464)+ (.117)*(.536)= 8.11% II. Estimated Share Price of Kohler - $55‚400 vs. $270‚000 The $55‚400 price per share is an undervalued
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Introduction to the Economics of Uncertainty and Information Timothy Van Zandt INSEAD November 2004 Copyright 2004 Preliminary and incomplete: Use only with the permission of the author. Author’s address: Voice: +33 1 6072 4981 INSEAD Boulevard de Constance Fax: +33 1 6074 6192 77305 Fontainebleau CEDEX Email: tvz@insead.edu FRANCE WWW: faculty.insead.edu/vanzandt Table of Contents 1 Choosing among Uncertain Prospects 1.1 Introduction to decision theory . . . . . . . . . . . .
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1. The time between arrivals of cars at MRR Service Company is shown in the following probability distribution: Times between Arrivals (Min) Probability 1 0.15 2 0.30 3 0.40 4 0.15 1.00 a) Simulate the arrival of cars at the company for 20 arrivals‚ and compute the average time between arrivals. Random number: 39‚ 73‚ 72‚ 75‚ 37‚ 02‚ 87‚ 98‚ 10‚ 47‚ 93‚ 21‚ 95‚ 97‚ 69‚ 41‚ 91‚ 80‚ 67‚ 59. b) Simulate the arrival of cars at the service station for one hour‚ and compute the average time between
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found with a prohibited item‚ what is the probability that the passenger was screened at A? Suppose: A: Item goes by screening location A B: Item goes by screening location B C: Item goes by screening location C D: Prohibited item is detected at a screening location So P(A)=0.5‚ P(B)=0.3‚ P(C)=0.2‚ P(D|A)=0.9‚ P(D|B)=0.8‚ P(D|C)=0.85 According to Bayes’ Rule: So if a passenger at a boarding gate is found with a prohibited item‚ the probability that the passenger was screened at A is 0
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AEM 4550: Economics of Advertising HW3 – Due at the beginning of the class Monday‚ March 8th You are encouraged to work in groups of 3-4 students. Write legibly‚ type when you can. Include a title page‚ listing the homework number and the names of all the members of the study group. PARTS I & II ANSWERS Objective: to analyze online advertising effectiveness. This question deals with the case “Air France Internet Marketing: Optimizing Google‚ Yahoo!‚ MSN‚ and Kayak Sponsored Search” by
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