3. A company's cash position, currently at $3.7m, follows a generalized Wienerprocess falling on average $0.2m per quarter with volatility of $1.2m perquarter. With what probability does the company find itself with a nega-tive cash balance at the end of 5 quarters?(a) 0.3538(b) 0.1572(c) 0.2422(d) 0.9601(e) None of the above.

Answered: Image /qna-images/answer/1aabaf1f-d7fe-4698-80f3-81c207f6b3d0.jpg

Answered: 3. A company's cash position, currently…

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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A stationary store has decided to accept a large shipment of ball-point pens if an inspection of 16 randomly selected pens yields no more than two defective pens. (a) Find the probability that this shipment is accepted if 10% of the total shipment is defective. (Use 3 decimal places.)
A retail store has implemented procedures aimed at reducing the number of bad checks cashed by its cashiers. The store's goal is to cash no more than eight bad checks per week. The average number of bad checks cashed is 2 per week. Let x denote the number of bad checks cashed per week. Assuming that x has a Poisson distribution: (a) Find the probability that the store's cashiers will not cash any bad checks in a particular week. (Round your answer to 4 decimal places. Leave no cells blank - be certain to enter "O" wherever required.) Probability (b) Find the probability that the store will meet its goal during a particular week. (Round your answer to 4 decimal places. Leave no cells blank - be certain to enter "O" wherever required.) Probability
An online cosmetic seller intends to send parcel on Cash On delivery in an attempt to increase her business. One out of every 10 parcels are returned, and the seller loses Rs. 350 (paid for delivery). But if the parcel is received, she gets a flat profit of Rs. 1000. Should she go for this new strategy? What is her expected net gain on each parcel?
On the way to school, a student encounters a traffic light on Main Street. The student estimates that she will get stopped on 23% of school days. During a 5-day school week, what is the probability that she: (Round to 4 decimal places when necessary.) (a) gets stopped for the first time on Wednesday? (b) gets stopped at least once during the week? (c) gets stopped everyday? (d) gets stopped on Monday, Tuesday and Wednesday?
The useful life of Johnson rods for use in a particular vehicle follows an exponential distribution with an average useful life of 5.2 years.You have a three-year warranty on your vehicle’s Johnson rod. What is the probability that the Johnson rod doesn’t fail before then? That is, what is the probability that its useful life doesn’t end before three years?b.If the vehicle manufacturer wants to limit the number of claims on the three-year warranty to 20%, what should the average useful life of the Johnson rod be?
< CO 2. There is a 0.9987 probability that a randomly selected 32 year-old male lives through the year. A life insurance company charges $169 for insuring that the male will live through the year. If the male does not survive the year, the policy pays out $110,000 as a death benefit. (a) From the perspective of the 32 year old male, what are the monetary values corresponding to the two events of surviving the year and not surviving? The value corresponding to surviving the year is $ The value corresponding to not surviving the year is $ (b) If 32 year-old male purchases the policy, what is his expected value? The expected value is $ (Round to the nearest cent as needed.) « Previous Next » LAON 23 3D 昌吧 MacBook Air 000 000 DD F7 公 F3 F4 F5 F6 F8 $ 4 5. 6 80
Exercise 1. The annual number of murders in Chicago and LA are modeled as independent Poissons with means 500 and 240. [Note: The rates per 100,000 were about 23.8 and 7.3, resp, in 2016.] (a) What is the probability that Chicago sees over 525 murders next year [an increase of over 5%]? (b) What is the probability that LA sees over 252 murders next year [an increase of over 5%]? (c) What is the probability that Chicago and LA combined see a total of over 777 murders next year [an increase of over 5%]?

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