Suppose an agent has $100. He opens a demand deposit of $100 with a bank which has asset xwhere x is a random variable and can take the following values:X.prob500.51700.5a)What is the information sensitivity of the demand deposit (i.e. expected loss) of the agent?Suppose there are two agents with $100 each. Both of them invest in the same bank and the bankinvests in two projects {x1, x2} whereX1probX2prob500.5500.51700.51700.5and the projects (random variables) are statistically independent.What is the information sensitivity of the demand deposit (i.e. expected loss) of an agentb)where payoffs are shared equally in case of default?Suppose there are three agents with $100 each. All of them invest in the same bank and the bankinvests in three projects {x1, x2, X3} whereX1probX2probX3prob500.5500.5500.51700.51700.51700.5and the projects (random variables) are all statistically independent.What is the information sensitivity of the demand deposit (i.e. expected loss) of an agentc)where payoffs are shared equally in case of default? Note, the joint distribution of threebinary random variables has eight states.

a. Suppose an agent has $100. He opens a demand deposit of $100. x prob 50 0.5 170 0.5…

Answered: Suppose an agent has $100. He opens 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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Let a be a random variable representing the percentage of protein content for early bloom alfalfa hay. The average percentage protein content of such early bloom alfalfa should be u = 17.2%. A farmer's co-op is thinking of buying a large amount of baled hay but suspects that the hay is from a later summer cutting with lower protein content. A small amount of hay was removed from each bale of a random sample of 50 bales. The average protein content from the samples was determined by a local agricultural college to be -15.8% with a sample standard deviation of S = 5.3%- At a = .05, does this hay have lower average protein content than the early bloom alfalfa?
Suppose a life insurance company sells a $230,000 1-year term life insurance policy to a 20-year-old female for $220. According to the National Vital Statistics Report, 58(21), the probability that the female survives the year is 0.999544. Compute and interpret the expected value of this policy to the insurance company. The expected value is $ (Round to the nearest cent as needed.)
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A market research company is interested in the home owership rates across Melbourne suburbs. They survey 253 households in the suburb of Carlton where the true probability of being a home owner for a given household is 0.782. Assume that the home ownership status of each households is independent of others. What is the expected value of the variable X, defined as the number of people who own homes in the sample (round to the nearest number of people).
zample 3: Alexis is selling girl scout cookies. She has kept track of the number of boxes of cookies at her customers have purchased over the last 2 years. She wants to use this data to help edict how many boxes of cookies a new customer might purchase. The table below summarizes exis' data, with the number of boxes that a customer might purchase along with the rresponding probability that they will purchase that number of boxes based on her previous les. Use this information to answer the following questions. Outcomes: 2 3 4 5 6 7 8 X = x Probability: P(X = x¡) 0.21 0.16 0.32 0.11 0.08 0.05 0.04 0.02 0.01 a) Construct a probability histogram of the data in the table above and comment on the shape. ) What is the probability that a randomly selected customer will purchase 3 boxes of cookies? What is the probability that a randomly selected customer will purchase at least 4 boxes of cookies? What is the probability that a randomly selected customer will purchase anywhere from 2 to 5…
A school district has a standardized test that it uses to determine placement into special classes. The superintendent is looking to determine whether male and female students have different scores on the test. The scores for a random sample of 25 male students and 25 female students are recorded. Assume that the scores are normally distributed for both male and female students. Let the male students be the first sample, and let the female students be the second sample. Is there enough evidence, at a = 0.01 to show a difference between male and female scores? Identify the degree of freedom and the critical value(s) to be used for this hypothesis test. Do not round; use the exact value from the t-table. Degree of freedom = Provide your answer below: Critical Value(s) = Males Females x1 = 168x2 = 171 $1 = 14 $2 = 17 n1 = 25 n2 = 25 Probability Degrees of Freedom 23 24 25 26 27 28 29 0.10 0.05 0.025 0.01 0.005 1.319 1.714 2.069 2.500 2.807 1.318 1.711 2.064 2.492 2.797 1.316 1.708 2.060…

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Suppose an agent has $100. He opens a demand deposit of $100 with a bank which has asset x where x is a random variable and can take the following values: X. prob 50 0.5 170 0.5 a) What is the information sensitivity of the demand deposit (ie expected loss) of the agent?