Business Analytics (2nd Edition)
Business Analytics (2nd Edition)
2nd Edition
ISBN: 9780321997821
Author: James R. Evans
Publisher: PEARSON
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Chapter 1, Problem 14PE

Automobiles have different fuel economies (mpg), and commuters drive different distance to work or school. Suppose that a state Department of Transportation (DOT) is insterested in measuring the average monthly fuel consumption of commuters in a certain city. The DOT might sample a group of commuters and collect information on the number of miles driven per day, number of driving days per month, and the fuel economy of their cars. Develop a predictive model for calculating the amount of gasoline consumed, using the following symbols for the data. G   =   g a l l o n s   o f   f u e l   c o n s u m e d   p e r   m o n t h m   =   m i l e s   d r i v e n   p e r   d a y   t o   a n d   f r o m   w o r k   o r   s c h o o l d   =   n u m b e r   o f   d r i v i n g   d a y s   p e r   m o n t h f   =   f u e l   e c o n o m y   i n   m i l e s   p e r   g a l l o n Suppose that a commuter drives 30 miles round trip to work 20 days each month and achieves a fuel economy of 34 mpg. How many gallons of gasoline are used?

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T1.4: Let ẞ(G) be the minimum size of a vertex cover, a(G) be the maximum size of an independent set and m(G) = |E(G)|. (i) Prove that if G is triangle free (no induced K3) then m(G) ≤ a(G)B(G). Hints - The neighborhood of a vertex in a triangle free graph must be independent; all edges have at least one end in a vertex cover. (ii) Show that all graphs of order n ≥ 3 and size m> [n2/4] contain a triangle. Hints - you may need to use either elementary calculus or the arithmetic-geometric mean inequality.
We consider the one-period model studied in class as an example. Namely, we assumethat the current stock price is S0 = 10. At time T, the stock has either moved up toSt = 12 (with probability p = 0.6) or down towards St = 8 (with probability 1−p = 0.4).We consider a call option on this stock with maturity T and strike price K = 10. Theinterest rate on the money market is zero.As in class, we assume that you, as a customer, are willing to buy the call option on100 shares of stock for $120. The investor, who sold you the option, can adopt one of thefollowing strategies:ˆ Strategy 1: (seen in class) Buy 50 shares of stock and borrow $380.ˆ Strategy 2: Buy 55 shares of stock and borrow $430.ˆ Strategy 3: Buy 60 shares of stock and borrow $480.ˆ Strategy 4: Buy 40 shares of stock and borrow $280.(a) For each of strategies 2-4, describe the value of the investor’s portfolio at time 0,and at time T for each possible movement of the stock.(b) For each of strategies 2-4, does the investor have…
Negate the following compound statement using De Morgans's laws.
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