2. An investment firm offers its customers municipal bonds that mature after varyingnumbers of years. Given that the cumulative distribution function of T, the number ofyears to maturity for a randomly selected bond, is0, t< 1,17,F(t) =1find:a) P(T= 5)b) P(T>3)c) P(1.4

Answered: 2. An investment firm offers its…

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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5. Suppose that a stick of length 1 is broked at a point U uniformly distributed on (0,1). Let L be the length of the longer of the two resulting pieces. 0 (a) Find P (L>). (b) 1 Find the cumulative distribution function of L.
Q4) An analyst gathered the following information for a stock and market parameters: stock beta = 0.74; expected return on the Market = 8.40%; expected return on T-bills = 2.10%; current stock Price = $5.40; expected stock price in one year = $14.05; expected dividend payment next year = $1.08. Calculate the a) Required return for this stock b) Expected return for this stock
(a) Let X1 ~ x² (n, 8) and X2 ~ x² (m, 1). mX1 and its parameters. nX2 (i) Find the distribution of X = (ii) If 1 = 0, name the distribution of X given in 3(a)(i).
The graph shows that: A) to attain a higher expected return the investor has to tolerate higher risk B) there is a positive linear relationship between expected return and risk C) the mean-return compensations of equal-std-increments decline as we target higher and higher risk D) answers 1 and 3 are correct E)answers 1 and 2 are correct
Please solve for all and explain each process
3A) Given P=822-30Q2 and MC=12+9Q find the consumer surplus (CS) (Hint: TR to MR and optimum quantity is MR=MC). B) S=200000 e5find the growth rate of S. C) MC=24eQ and FC=72 Find the total cost. D) The probability of waiting in bus station is given with the frequency distribution f(t)= 1/16 t3 find the probability that your waiting time will be between 1 and 2 minutes?
1. The test contains four questions, and there are five different answers to each of them, of which only one is correct, the others are incorrect. What is the probability that a student who does not know the answer to any question will guess the right answer? (PERCENTAGE FORMAT) 2. At a certain university, 25% of students are in the business faculty. Of the students in the business faculty, 66% are males. However, only 52% of all students at the university are male. a. What is the probability that a student selected at random in the university is a male in the business faculty? b. What is the probability that a student selected at random in the university is male or is in the business faculty? c. What percentage of males are in the business faculty? (PERCENTAGE FORMAT)
b) Let X₁, X₂,..., X and Y₁, Y₂, ..., Ym be random samples from populations with moment generating 25 functions Mx₁(t) = ³t+t² and My(t) = (₁-¹)²5, respectively. i) Find the sampling distribution of the statistic W = X₁ + 2X₂ − X3 + X4 + X5. ii) What is the value of the sample size n, if P[Σ1(X¡ − X)² > 68.3392] = 0.025? iii) What is the value of the sample size m, if P(|Ỹ - µy| ≥10) < 0.04?
7. Prove or disprove that the following function is a cumulative distribution function (cdf). If the function is a cdf, is the random variable continuous or discrete? Why? (Note: This is a special case of a logistic distribution.) Fx(x)= 1 1+ e-z -∞<<∞.

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2. An investment firm offers its customers municipal bonds that mature after varying numbers of years. Given that the cumulative distribution function of T, the number of years to maturity for a randomly selected bond, is 0, t<1, 1, 17, F(t) = find: a) P(T= 5) b) P(T>3) c) P(1.4