Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
1 AND 2
![1. An investor is pondering on whether to invest in a siomai franchise or in a printing press company. He had his staff
analyze the cost benefits that he would get from the two business ventures and they came up with this report.
A. The siomai franchise would need Php 800 000 as capital. It has a 60-percent chance of profiting Php
400 000; a 15-percent chance of profiting Php 600 000; and 25-percent chance of losing the capital
entirely.
B. The paper manufacturing company would need Php 800 000 as capital. It has a 35-percent chance of
earning Php 1000 000 and a 65-percent chance of losing the capital entirely.
C. Which between the two business ventures should the investor invest his Php 800 000?
2. Dr. Cornie developed a test to measure Boredom. He administered it to a group of 20,000 adults. The possible
scores were 1, 2, 3, 4, 5, 6, and 7 with 7 indicating the highest tolerance for boredom. The results are shown.
Complete the following table and then find the mean, variance, and standard deviation to measure boredom
tolerance of the adults.
Score X
1
2
4
6
7
Frequency f
1400
2600
3600
6000
4400
1600
400
Probability P(X)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff4bad891-ffb5-47a8-8971-fe2ceb53955d%2Fcd7a937d-6cb1-4e53-ae94-55210df52ea4%2Facebwgn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1. An investor is pondering on whether to invest in a siomai franchise or in a printing press company. He had his staff
analyze the cost benefits that he would get from the two business ventures and they came up with this report.
A. The siomai franchise would need Php 800 000 as capital. It has a 60-percent chance of profiting Php
400 000; a 15-percent chance of profiting Php 600 000; and 25-percent chance of losing the capital
entirely.
B. The paper manufacturing company would need Php 800 000 as capital. It has a 35-percent chance of
earning Php 1000 000 and a 65-percent chance of losing the capital entirely.
C. Which between the two business ventures should the investor invest his Php 800 000?
2. Dr. Cornie developed a test to measure Boredom. He administered it to a group of 20,000 adults. The possible
scores were 1, 2, 3, 4, 5, 6, and 7 with 7 indicating the highest tolerance for boredom. The results are shown.
Complete the following table and then find the mean, variance, and standard deviation to measure boredom
tolerance of the adults.
Score X
1
2
4
6
7
Frequency f
1400
2600
3600
6000
4400
1600
400
Probability P(X)
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