Suppose that the price of a share of a particular stock listed on the New York StockExchange is currently $39. The following probability distribution shows how the priceper share is expected to change over a three-month period:Stock Price Change Probability-2 0.05-2 0.100 0.251 0.202 0.203 0.104 0.10a. Construct a spreadsheet simulation model that computes the value of the stock pricein 3 months by simulating the price change 100 times.b. For a current price of $39 per share, what is the average stock price per share 3months from now based on your simulation?

a)DaysRandom NumberStock Price Changes ($)Stock Price after 3 months…

Answered: Suppose that the price of a share of 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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The figure below shows survival probabilities from all-cause mortality over 20 years in participants over 50 years of age who have normal glucose, glucose intolerance, and Type II diabetes mellitus. Estimate the 5-year survival probability for Type II diabetes. a. approximately 10% b. approximately 60% c. approximately 76% d. approximately 84%
In deciding how many customer service representatives to hire and in planning their schedules, it is important for a firm marketing electronic typewriters to study repair times for the machines. Such a study revealed that repair times have approximately an exponential distribution with a mean of 42 minutes. Find the probability that a repair time will last less than 17 minutes.
Let X = {Email, In Person, Instant Message, Text Message}; P(Email) = 0.06 P(In Person) = 0.55 P(Instant Message) = 0.24 P(Text Message) = 0.15 Is this model a probability distribution? A. Yes. B. No. C. Maybe.
The management of Brinkley Corporation is interested in using simulation to estimate the profit per unit for a new product. The selling price for the product will be $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows: Procurement Cost ($) Probability Labor Cost ($) Probability Transportation Cost ($) Probability 10 0.25 20 0.10 3 0.75 11 0.45 22 0.25 5 0.25 12 0.30 24 0.35 25 0.30 Compute profit per unit for the base-case, worst-case, and best-case scenarios. Construct a simulation model to estimate the mean profit per unit. Why is the simulation approach to risk analysis preferable to generating a variety of what-if scenarios? Management believes the project may not be sustainable if the profit per unit is less than $5. Use simulation to estimate the probability the profit per unit will be less than $5.
A consultant has been hired to redesign a company's production facility. The consultant estimates the probabilities of her potential profit as shown in the table below. What is her profit expectation? Profit/Loss Probability $40,000 $30,000 $20,000 $10,000 $5,000 0.08 0.30 0.38 0.20 0.04
The useful life of Johnson rods for use in a particular vehicle follows an exponential distribution with an average useful life of 5.2 years.You have a three-year warranty on your vehicle’s Johnson rod. What is the probability that the Johnson rod doesn’t fail before then? That is, what is the probability that its useful life doesn’t end before three years?b.If the vehicle manufacturer wants to limit the number of claims on the three-year warranty to 20%, what should the average useful life of the Johnson rod be?
WFC Average St. Dev. Min 0.65% 10.26% -28.99% Мах 27.51% 25. Based on the table above, what is the probability of losing -7% or more for WFC? A. 0.07 B. 0.14 C. 0,23 D. 0.29 %3D E. 0.31 26. If you have $200,000 invested in WFC, what is the dollar value of VaR of losing -7% or more? A. $14,000 B. $28,000 C. $46,000 D. $58,000 E. $62,000 27. Based on the table above, there is 30% chance that your losses for WFC will be greater than A. -0,30% B. 2.15% C. 4.73% D. 7% E. -14% 28. Based on the table above, there is 30% chance that your dollar losses for WFC will be greater than if you have $200,000 invested in ti? A. -S600 B. $4,300 C. -$9,460 D. -$14,000 E. S28,000
About 5% of hourly paid workers in a region earn the prevailing minimum wage or less. A grocery chain offers discount rates to companies that have at least 30 employees who earn the prevailing minimum wage or less. Complete parts (a) through (c) below. (a) Company A has 298 employees. What is the probability that Company A will get the discount? nothing (Round to four decimal places as needed.) (b) Company B has 523 employees. What is the probability that Company B will get the discount? nothing (Round to four decimal places as needed.) (c) Company C has 1003 employees. What is the probability that Company C will get the discount? nothing (Round to four decimal places as needed.)
Exercises 32: The data in Table 2 represent the rates of return of the Standard and Poor's Index of 500 Stocks from January 2002 through June 2005. Is there sufficient evidence to support the claim that positive monthly rates of return are random at the a = 0.05 level of significance? Table 2 Date Return (%) | Date Return (%) || Date Date Return (%) Return (%) 1/2002 -2.12 1/2003 -2.74 1/2004 1.73 1/2005 -2.53 2/2002 -2.08 2/2003 -1.70 2/2004 1.22 2/2005 1.89 3/2002 3.67 3/2003 0.84 3/2004 -1.64 3/2005 -1.91 4/2002 -6.14 4/2004 4/2005 4/2003 8.10 -1.68 -2.01 5/2002 -0.91 5/2003 5.09 5/2004 1.21 5/2005 3.00 6/2002 -7.25 6/2003 1.13 6/2004 1.80 6/2005 0.90 7/2002 -7.90 7/2003 1.62 7/2004 -3.43 8/2002 0.49 8/2003 1.79 8/2004 0.23 9/2002 -11.00 9/2003 -1.19 9/2004 0.94 10/2002 8.64 10/2003 5.50 10/2004 1.40 11/2002 5.71 11/2003 0.71 11/2004 3.86 12/2002 -6.03 12/2003 5.08 12/2004 3.25 Source:Yahoo! Finance
A university is considering setting up an information desk manned by one employee. Based on information obtained from similar information desks, it is believed that people will arrive at the desk at the rate of 18 per hour. It takes an average of 2 minutes to answer a question. It is assumed that arrivals are Poisson and answer times are exponentially distributed. What is the arrival rate? (Include the units.) What is the service rate? (Include the units.) Find the probability that the employee is idle.
Please see attached.
Select one method to filter conditional volatility. Present and interpret descriptive statistics of conditional volatility of (i) overnight returns, (ii) intraday returns, and (iii) total returns.

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