A money market mutual fund manages a $ 100 crores fund invested in money market securities. It hasassessed its average daily cash needs as 10% of the corpus to meet the redemption pressure even indifficult times. Last 100 days average was found to be 10.08% of the corpus. The experience of mutualfund manager has revealed the standard deviation of average daily cash balance as 30 lakhs $He wants to find out whether or not his last 100 days average cash balance is within the limits of 10%at a level of significance of 5%. How can you help him ?

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Answered: A money market mutual fund manages a $…

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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A Scenario: Jimmy store sells large tins of Tom Tucker Coffee. The deli uses a periodic review system. Inventory is checked every 10 days which more orders are needed for tins. Order lead time is 3 days. Average demand is 7 tins, so average demand during the reorder period and order lead time (13) is 91 tins. Standard deviation of demand during the same 13 day period is 17 tins.1. Calculate the restocking level ( Assume the desired level is 90%)2. Suppose standard deviation of demand during the 13-day period drops to 4 tins. What happened to restocking level? Explain why?3. Draw a saw-tooth diagram. Beginning inventory level is equal to restocking level and the demand rate is a constant 7 tins per day. What is the safety stock level? What is the average inventory level?
Andrew plans to retire in 40 years. He plans to invest part of his retirement funds in stocks, so he seeks out information on past returns. He learns that over the entire 20th century, the real (that is, adjusted for inflation) annual returns on U.S. common stocks had mean 8.7% and standard deviation 20.2%. The distribution of annual returns on common stocks is roughly symmetric, so the mean return over even a moderate number of years is close to Normal. What is the probability (assuming that past pattern of variation continues) that the mean annual return on common stocks over the next 40 years will exceed 10%? What is the probability that the mean return will be less than 5%?
"The Pune Times" is a local daily newspaper.lt has a circulation of 100,000 subscribers and is thinking of raising it's subscription price. Currently the price is Rs 50 week, and it is estimated that the paper would lose 10,000 subscribers if the rate were to be raised by Rs 5/Week. (a) Find the subscription price that would maximise profit. (b) Do a sensitivity analysis of the solutions with respect to the estimated number of lost subscribers. (c) Should the paper change it's subscription price? Explain your answer.
The daily price of orange juice 30-day futures is normally distributed. InMarch through April 2007, the mean was 145.5 cents per pound, and standarddeviation = 25.0 cents per pound.4 Assuming the price is independent from day today, find P (x < 100) on the next day.
In a recent year, grade 6 Ohio State public school students taking a mathematics assessment test had a mean score of 303.1 with a standard deviation of 36. Possible test scores could range from 0 to 1000. Assume that the scores were normally distributed. This is not a normal approximation, so do not correct for continuity. Find the probability that a student had a score higher than 295. Find the probability that a student had a score between 230 and 305. What is the highest score that would still place a student in the bottom 16% of the scores? If 4000 students are randomly selected, how many will have a test score that is less than 300? A random sample of 40 students is drawn from this population. What is the probability that the mean test score is greater than 290?
MARGI sells different types of wine. Customers place orders to the most popular "Summer Wine" at a relatively constant rate. The store buys this wine from WSCO that used to require lead-time of 1.5 weeks. Recently WSCO informed MARGI that its lead-time is increasing by K weeks. MARGI who runs an EOQ policy with cycle service level, realized that because of this increase, its current lead-time standard deviation of the demand is going to double. 1. What would the lead-time mean demand be? Twice as large as the current mean demand. b. Stay the same. c. Larger but more than two times. d. Not enough information to answer. a. 2. Calculate the value of 'K', and show your work.
Suppose that the speeds of car is traveling in California freeways are normally distributed with a mean of 63 mph. The highway patrols policy is to issue tickets for cars with speeds exceeding 80 mph. The records show that exactly 2% of the speed succeed this limit find the standard deviation of the speed of cars traveling on California’s freeway. Carry your intermediate computations to at least four decimal places in round your answer to at least one decimal place.
Deandre is in his first semester at a certain university and is taking a calculus course with a large enrollment. He just took the first midterm exam and is nervous about his score. Among all of the students in the course, the mean of the exam was 67 with a standard deviation of 3. Deandre scored a 62 on this exam. (a) Find the z-score of Deandre's exam score relative to the exam scores among all the students in the course. Round your answer to two decimal places. z=0 (b) Fill in the blanks to interpret the z-score of Deandre's exam score. Make sure to express your answer in terms of a positive number of standard deviations. Deandre's exam score was standard deviations (Choose one) ▼ the mean exam score among all students in the course. Calendar ... 80 F3 F4 F6 F7 F8 F9 F10 F11 云

A life insurance company sells annuities to men aged exactly60. Each policyholder pays a single net premium, P, and then receives anannuity of $30 000 a year in arrear (so that the first annuity payment is on the61st birthday). Assume that mortality follows the Standard Select Life Table,and that the interest rate is 5% per year. Calculate the standard deviation of the present value of profit on a singlepolicy.
A mechanic sells a brand of automobile tire that has a life expectancy that is normally distributed, with a mean life of 34,000 miles and a standard deviation of 2200 miles. He wants to give a guarantee for free replacement of tires that don't wear well. How should he word his guarantee if he is willing to replace approximately 10% of the tires? Click to view page 1 of the table. Click to view page 2 of the table. ****... Tires that wear out by miles will be replaced free of charge. (Round to the nearest mile as needed.)
The standard deviation of pulse rates of adult males is more than 10 bpm. For a random sample of 130 adult males, the pulse rates have a standard deviation of 10.7 bpm. Express the original claim in symbolic form.

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