Problem 2.Let B(t) represent the change in the price (US dollars) of a barrel of crude oil t days from now. Suppose B(t)follows a Brownian motion with u= 0.01 ando =0.15.1. Find the probability that the price has changed by more than 1 dollar after 5 days.2. Repeat the previous part but for 10 days.3. Given that the price has increased by exactly 1 dollar in the first 7 days, find the conditional probability that itwill be at least another dollar higher after an additional 7 days.

Answered: Image /qna-images/answer/ba417d54-c344-4684-bd22-407926eafd5e.jpg

Answered: Let B(t) represent the change in the…

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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The type of battery in Jim's laptop has a lifetime X (in years) which follows a Weibull distribution with parameters α=2 and β=4. The type of battery in Jim's tablet has a lifetime Y (in years) which follows an exponential distribution with parameter λ=1/4.Find E(XY−2Y).(Answer as a decimal number, and round to 2 decimal places).
10.23. Question. An umbrella-shaped island has a population of 499 healthy people. Alice, who is injected with the T-virus, enters the island on day 0. It is known that anyone infected with the T-virus will become a zombie after 24 hours. Assume that the infected (zombies are considered infected) will spread the virus (through biting) and no one on this island can escape from it. The rate of virus transmission is proportional to the product of the number of infected and non-infected. Thus, if x(t) denotes the number of the infected on day t, then dx dt = kx(500 — x). On day 10, it is observed that 20 people are already infected. Answer the following questions. (a) How many zombies are on the island on day 16? (b) On day 20, how many people are infected but not yet turned into a zombie? (c) A rescue boat with 50 available seats is to be sent to the island. What is the earliest day the boat should be sent to ensure it can rescue all survivors (those not infected)?
55 A stable level within a phase is defined as a set of observations that a. cluster around a horizontal line when graphed b. cluster around a line sloping up to the right when graphed C. cluster around a line sloping down to the right when graphed d. are distributed equally along both axes
Consider an economy where each worker is employed in either agriculture or services. Assume that log earnings of a worker are wo = 4o + €o if she is employed in agriculture and wi = µ1+€1 if she is employed in services, where µo and H1 are constants, ɛo ~ N(0, o3), and e1 - N(0, o?). Assume also that the correlation between earnings in the two sectors is p = g01 where oo1 = Cov(Eo, E1). Workers can be employed in agriculture at no cost, but they incur a cost C = T exp(wo) if they choose to work in services. Finally, assume that workers maximize their net earnings. Each worker knows all the parameters relevant to her decision. (a) Derive a linear approximation of the equation that determines whether an individual chooses services or agriculture. Assume that C is small compared to exp(wo), so you can ignore the error involved in this approximation. (b) Define v = €1 chosen worker is employed in services as a function of z, where z = (Ho – H1 +7)/0,. (c) How does this probability change…
A researcher is interested in finding out how the past average daily values of the stock prices of a firm A determine the current average daily value of its stock price. Let pt ( measured in dollars) denote the average daily value of the stock price of firm A at time t. The researcher collects data on the average daily values of the stock prices of the last quarter of 2017, i.e., t = 1,2, dots,90 and estimates the following autoregressive model with 1 lag of pt: hat(p)t = 2.48 +.05pt.1bar (R)² = 0.512, SER = 13.14. (1.13) (0.64) The standard errors are given in parentheses. Suppose that the actual average daily value of the stock price on January 2, 2018 was $506.12 and the average daily value of the stock price on December 31, 2017 was $445.12. The forecast error in the estimation of the average daily value of the stock price on January 2, 2018 will be $ (Round your answer to two decimal places.) This is all the info in the question
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