(a) Find the value at risk (VaR) for an investment of $100,000 at 5%. (That is, find out how low the value of thisinvestment could be if the worst 5% of outcomes are ruled out.) The investment is expected to grow during the year by8% with SD 20%. Assume a normal model for the change in value.(b) To reduce the VaR to $12,000, how much more expected growth would be necessary? Assume that the SD of thegrowth remains 20%.

a)mean = 8% , sd = 20%P(Z <z) = 0.05z = -1.64mean + z *sd= 8 - 1.64 * 20= -24.8 %hence$100000 *…

Answered: (a) Find the value at risk (VaR) for an…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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An October 26, 2020 news report raised alarms that the population of North Atlantic Right Whales had declined a dramatic 11% with increased risk for the whales extinction in the near future. Whale deaths are largely caused by collisions with fishing boats and by whale entanglement in fishing nets and lobster trap gear. “Since the population peaked at 481 whales in 2011, there have been 103 births, but roughly 218 whales have died, presumably because of human activity – a rate of 24 deaths per year.” Subtracting births from death, what is the yearly net decrease in the Right Whale population between 2011 and 2020? Create a linear mathematical model for the decline in Right Whale population since 2011 (i.e. let 2011 be year zero). The article says that in 2018 there were 366 Right Whales counted. How accurate is your linear model when compared to the 2018 whale count?
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For each situation, indicate whether the appropriate model would be Linear or Exponential. Be prepared to give reasons. Choose carefully: you only get one attempt for each of these. (a) Rashida received a $5,000 bonus this year. She put the money in savings account. Each week, she spends 5% of the balance in the account on something special. Select an answer (b) Your Keurig machine will lose 20% of of its value every three years. Select an answer ✓ (c) Cameron adds $130 to his savings account every week when he gets paid. Select an answer ✓ (d) A dog groomer charges according to your dog's weight. If your dog is 18 pounds and under, the groomer charges $25. If your dog is over 18 pounds, they charge $25, plus an additional $4 for each pound over 18. Select an answer ✓ Use the "Add Work" button to explain your reasoning for each situation. Add Work Check Answer
(ii) A state predicts that it will need $2.15 billion for construction of new roads and maintenance of existing roads in year 2025. It is forecast that 1.5 percent of the vehicle-fleet in that year will be electric vehicles with the remaining being gas powered vehicles. The population of the state is forecast to be 10 million persons in 2025 with the average number of vehicles owned per person being 0.75. It is projected that on average each vehicle will be driven 12,000 miles per year, with gas powered vehicles achieving an average gas consumption of 25 miles per gallon (mpg). If the state plans to raise 99 percent of the required revenue from gas powered vehicles and the remainder from electric vehicles, (a) Determine how much each gallon of gas sold should be taxed to achieve the revenue target (b) Determine what the annual flat tax for each electric vehicle should be to raise the appropriate revenue target; (c) If the state decides to raise the required revenue based on a tax per…
Determine whether the following scenarios are linear or exponential. As summer approaches, I noticed that for every increase in 5 degrees, the number of people I see at the pool increases by about 3. The amount of Francium,a radioactive element, decays by about 3.1% every minute. The number of flu cases increases by about 1.6% per month during flu season. Based on Mrs. Olivet's Test 4 results, students tended to score about 4 more points on their test for every hour they studied. The percentage of the population that has been vaccinated for COVID-19 increased by about 0.25 percentage points every day in January. The population of bugs in Monica's walls decreased by 80% every week while the exterminator was treating her home. During a rainstorm the reading from the rain gauge increased by a quarter inch every hour. Selene didn't want her parents to notice she was stealing candy from the jar, so every day she only ate 1/8 of what was left. While writing an essay, Carson writes 7…
Two competing companies produce mobile phones. Company A starts production at 1000 phones per week and plans to increase output by 200 each week. Company B starts production with 500 phones per week and plans to increase output by 20% each week. (a) Calculate the weekly production in weeks 1; 5; 10; 15. Plot the graph of weekly output for each producer on the same diagram (use Excel, if available). Estimate the week in which the output is the same for both firms. (b) Calculate the total production during the first 15 weeks for each firm.
A person wants to earn the profit of $200,000 from his three goods next year. Product A gives him a profit of $100 and has an expected growth of 10% per year. Product B provides a profit of $200 and has an expected growth of 5% per year. Product C provides a profit of $150 and has an expected growth of 8% per year. The person plans to sell two times of product C as of product B. If the person estimated a total growth of 12% per year in his profits, how many of each product should the person sell in a year? the answer is A: 1931, B: 14, C: 28
part 3

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