Smith and Jones are financial analysts who enter a stock picking contest. Smith picks the stock ofCompany A and Jones picks the stock of Company B. Over the next week, the gain in the price ofstock A will be X and the gain in the price of stock B will be Y, where X and Y have the joint,density f(x, y) =(a + 2y) for 0 < x <1 and 0 < y < 1.If the gain in Smith's stock for the week is greater than the gain in Jones' stock, Jones will paySmith $1000. How much should Smith pay Jones if the gain in Smith's stock is less than that ofJones' stock in order that Smith's expected return in this contest is 0?A) 400B) 800C) 1200D) 1600E) 2000

Given: Joint density function, fx,y=23x+2yfor 0<x<1 and 0<y<1Probability of…

Smith and Jones are financial analysts who enter a stock picking contest. Smith picks the stock of Company A and Jones picks the stock of Company B. Over the next week, the gain in the price of stock A will be X and the gain in the price of stock B will be Y, where and Y have the joint. density f(x, y) = (x+ 2y) for 0 < x <1 and 0< y <1. If the gain in Smith's stock for the week is greater than the gain in Jones' stock, Jones will pay Smith $1000. How much should Smith pay Jones if the gain in Smith's stock is less than that of Jones' stock in order that Smith's expected return in this contest is 0?

Smith and Jones are financial analysts who enter a stock picking contest. Smith picks the stock of Company A and Jones picks the stock of Company B. Over the next week, the gain in the price of stock A will be X and the gain in the price of stock B will be Y, where and Y have the joint. density f(x, y) = (x+ 2y) for 0 < x <1 and 0< y <1. If the gain in Smith's stock for the week is greater than the gain in Jones' stock, Jones will pay Smith $1000. How much should Smith pay Jones if the gain in Smith's stock is less than that of Jones' stock in order that Smith's expected return in this contest is 0?

Algebra & Trigonometry with Analytic Geometry

13th Edition

ISBN:9781133382119

Author:Swokowski

Publisher:Swokowski

Chapter7: Analytic Trigonometry

Section7.6: The Inverse Trigonometric Functions

Problem 94E

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Question

Smith and Jones are financial analysts who enter a stock picking contest. Smith picks the stock of
Company A and Jones picks the stock of Company B. Over the next week, the gain in the price of
stock A will be X and the gain in the price of stock B will be Y, where X and Y have the joint,
density f(x, y) =(a + 2y) for 0 < x <1 and 0 < y < 1.
If the gain in Smith's stock for the week is greater than the gain in Jones' stock, Jones will pay
Smith $1000. How much should Smith pay Jones if the gain in Smith's stock is less than that of
Jones' stock in order that Smith's expected return in this contest is 0?
A) 400
B) 800
C) 1200
D) 1600
E) 2000

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