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A Problem Solving Approach To Mathematics For Elementary School Teachers (13th Edition)
13th Edition
ISBN: 9780135183885
Author: Rick Billstein, Shlomo Libeskind, Johnny Lott, Barbara Boschmans
Publisher: PEARSON
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Textbook Question
Chapter 13.5, Problem 2MC
Explain how you would find the volume of an irregular shape.
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To compare two elementary schools regarding teaching of reading skills, 12 sets of identical twins were used. In each case, one child was selected at random and sent to school A, and his or her twin was sent to school B. Near the end of fifth grade, an achievement test was given to each child. The results follow:
Twin Pair
1
2
3
4
5
6
School A
169
157
115
99
119
113
School B
123
157
112
99
121
122
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7
8
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10
11
12
School A
120
121
124
145
138
117
School B
153
90
124
140
142
102
Suppose a sign test for matched pairs with a 1% level of significance is used to test the hypothesis that the schools have the same effectiveness in teaching reading skills against the alternate hypothesis that the schools have different levels of effectiveness in teaching reading skills. Let p denote portion of positive signs when the scores of school B are subtracted from the corresponding scores of school…
Chapter 13 Solutions
A Problem Solving Approach To Mathematics For Elementary School Teachers (13th Edition)
Ch. 13.1 - In track, the second lane from the inside of the...Ch. 13.1 - Observe that it is possible to build a triangle...Ch. 13.1 - A student asks why 227 cannot always be used as...Ch. 13.1 - A Student imagines a wire stretched around Earth....Ch. 13.1 - Prob. 12MCCh. 13.1 - Which of these units would be the best to use to...Ch. 13.1 - If Freds rope is 12 inches long, about how long is...Ch. 13.1 - The circumference of a circular piece of wood is...Ch. 13.1A - Use the following picture of a ruler to find each...Ch. 13.1A - Prob. 2A
Ch. 13.1A - Complete each of the following. a. 100 in....Ch. 13.1A - Prob. 4ACh. 13.1A - Estimate the length of the following segment and...Ch. 13.1A - Prob. 6ACh. 13.1A - Repeat exercise 6 using English measures. 6....Ch. 13.1A - Prob. 8ACh. 13.1A - Prob. 9ACh. 13.1A - Prob. 10ACh. 13.1A - List the following in decreasing order: 8 cm,...Ch. 13.1A - Prob. 12ACh. 13.1A - a. What is the length of a semicircle of a circle...Ch. 13.1A - Prob. 14ACh. 13.1A - Complete each of the following. a. 10 mm =______cm...Ch. 13.1A - Prob. 16ACh. 13.1A - Can the following be the lengths of the sides of a...Ch. 13.1A - Prob. 18ACh. 13.1A - Take an 81211-in. piece of paper, fold it as shown...Ch. 13.1A - Prob. 20ACh. 13.1A - What happens to the circumference of a circle if...Ch. 13.1A - Prob. 22ACh. 13.1A - Prob. 23ACh. 13.1A - Prob. 24ACh. 13.1A - Prob. 25ACh. 13.1A - Prob. 26ACh. 13.1A - Suppose you have three concentric circles and are...Ch. 13.1B - Use the following picture of ruler to find each of...Ch. 13.1B - Estimate and then measure each of the following in...Ch. 13.1B - Convert each of the following to the indicated...Ch. 13.1B - Prob. 5ACh. 13.1B - Prob. 6ACh. 13.1B - Prob. 7ACh. 13.1B - Prob. 8ACh. 13.1B - If eggs were sold in the United States using...Ch. 13.1B - List the following in decreasing order:...Ch. 13.1B - Draw each of the following as accurately as...Ch. 13.1B - The following figure is a circle whose radius is 2...Ch. 13.1B - Prob. 14ACh. 13.1B - Complete each of the following conversions. a. 35...Ch. 13.1B - Prob. 16ACh. 13.1B - Can the following be the lengths of the sides of a...Ch. 13.1B - Prob. 18ACh. 13.1B - Prob. 20ACh. 13.1B - For each of the following, if a circle has the...Ch. 13.1B - Prob. 22ACh. 13.1B - Astronomers use a light-year to measure distance....Ch. 13.1B - Give the greatest possible error for each of the...Ch. 13.1B - a. Find the length of a 48 arc of a circle whose...Ch. 13.1B - Find the radius of the circle containing 60 arc...Ch. 13.1B - Prob. 27ACh. 13.2 - The three midsegments of a triangle divide it into...Ch. 13.2 - Prob. 2MCCh. 13.2 - Prob. 3MCCh. 13.2 - Prob. 4MCCh. 13.2 - Prob. 5MCCh. 13.2 - Prob. 6MCCh. 13.2 - Prob. 7MCCh. 13.2 - Prob. 8MCCh. 13.2 - Prob. 9MCCh. 13.2 - a. A sector in circle with center O and radius 10...Ch. 13.2 - In the following right triangle, AB=10,AC=6,CB=8 ....Ch. 13.2 - Prob. 13MCCh. 13.2 - Prob. 14MCCh. 13.2 - Prob. 15MCCh. 13.2 - Prob. 16MCCh. 13.2 - Prob. 17MCCh. 13.2 - Prob. 18MCCh. 13.2 - Ori claims that to find the area of a...Ch. 13.2 - Prob. 20MCCh. 13.2 - In Figure 29, we found the area of a kite using...Ch. 13.2 - Prob. 22MCCh. 13.2 - Prob. 23MCCh. 13.2 - Prob. 25MCCh. 13.2 - Prob. 26MCCh. 13.2 - Prob. 27MCCh. 13.2 - Prob. 28MCCh. 13.2 - Prob. 29MCCh. 13.2 - Prob. 1NAEPCh. 13.2 - Which figure has the greatest area? A. A B. BC....Ch. 13.2 - Prob. 3NAEPCh. 13.2 - Prob. 4NAEPCh. 13.2 - On the scale drawing above, the shaded area...Ch. 13.2A - Choose the most appropriate metric unit cm2, m2 or...Ch. 13.2A - Estimate and then measure the area of the each of...Ch. 13.2A - Prob. 4ACh. 13.2A - Complete the following conversions a. 4000ft2=yd2...Ch. 13.2A - Find the area of each of the following figures if...Ch. 13.2A - Complete each of the following sentences a. A...Ch. 13.2A - Prob. 8ACh. 13.2A - Prob. 9ACh. 13.2A - Prob. 10ACh. 13.2A - Find the area of each of the following...Ch. 13.2A - a. A rectangular piece of land is 1300m1500m i....Ch. 13.2A - Prob. 13ACh. 13.2A - Prob. 14ACh. 13.2A - Find the cost of carpeting the following rectangle...Ch. 13.2A - Prob. 16ACh. 13.2A - Joe uses stick on square carpet tiles to cover his...Ch. 13.2A - Prob. 18ACh. 13.2A - Prob. 19ACh. 13.2A - Prob. 20ACh. 13.2A - Prob. 21ACh. 13.2A - Prob. 22ACh. 13.2A - Prob. 23ACh. 13.2A - Prob. 24ACh. 13.2A - Prob. 25ACh. 13.2A - Prob. 26ACh. 13.2A - Prob. 27ACh. 13.2A - Prob. 28ACh. 13.2A - Prob. 29ACh. 13.2A - Prob. 30ACh. 13.2A - Prob. 31ACh. 13.2A - Prob. 32ACh. 13.2A - Prob. 33ACh. 13.2A - Prob. 34ACh. 13.2A - Prob. 35ACh. 13.2B - Choose the most appropriate metric unit cm2, m2 or...Ch. 13.2B - Prob. 3ACh. 13.2B - Complete the following conversion table m2 cm2 mm2...Ch. 13.2B - Complete the following conversions a. 99ft2=yd2 b....Ch. 13.2B - Find the areas of each of the following figures if...Ch. 13.2B - Prob. 7ACh. 13.2B - Find the area of ABC in each of the following...Ch. 13.2B - a. If triangle ABC is similar to triangle DEF and...Ch. 13.2B - Find the area of each of the following...Ch. 13.2B - a. A rectangular piece of land is 1.2km by 900m i....Ch. 13.2B - a. If the area of a rectangle remains constant but...Ch. 13.2B - Prob. 14ACh. 13.2B - Prob. 15ACh. 13.2B - Prob. 16ACh. 13.2B - Prob. 17ACh. 13.2B - Prob. 18ACh. 13.2B - Prob. 19ACh. 13.2B - Prob. 21ACh. 13.2B - If the area of a square is 169in2, what is its...Ch. 13.2B - Prob. 23ACh. 13.2B - Prob. 24ACh. 13.2B - Prob. 25ACh. 13.2B - Prob. 26ACh. 13.2B - A store has wrapping paper on sale, One packed is...Ch. 13.2B - Prob. 28ACh. 13.2B - Prob. 29ACh. 13.2B - Prob. 30ACh. 13.2B - Prob. 31ACh. 13.2B - Prob. 32ACh. 13.2B - Prob. 33ACh. 13.2B - Prob. 34ACh. 13.2B - Prob. 35ACh. 13.2B - Prob. 36ACh. 13.2B - What is the length of the side of a square with...Ch. 13.2B - Prob. 38ACh. 13.3 - Mathematical Connections Given a square, describe...Ch. 13.3 - Prob. 2MCCh. 13.3 - Mathematical Connections The sum of the squares of...Ch. 13.3 - Mathematical Connections Explain how to construct...Ch. 13.3 - Mathematical Connections A Pythagorean triple is a...Ch. 13.3 - Mathematical Connections Explain how to adapt the...Ch. 13.3 - Mathematical Connections In the figure shown,...Ch. 13.3 - Mathematical Connections Find the area of ABC if...Ch. 13.3 - Mathematical Connections The height of an...Ch. 13.3 - Mathematical Connections Two concentric circles...Ch. 13.3 - Mathematical Connections Find the distance between...Ch. 13.3 - Mathematical Connections Construct two squares of...Ch. 13.3 - Prob. 13MCCh. 13.3 - Prob. 17MCCh. 13.3 - MATHEMATICAL CONNECTIONS One leg of a right...Ch. 13.3 - Prob. 19MCCh. 13.3 - Prob. 20MCCh. 13.3 - Prob. 21MCCh. 13.3 - Prob. 22MCCh. 13.3 - Prob. 24MCCh. 13.3 - Prob. 25MCCh. 13.3 - Prob. 26MCCh. 13.3 - Prob. 27MCCh. 13.3 - Prob. 29MCCh. 13.3 - National Assessment of Educational ProgressNAEP...Ch. 13.3 - Prob. 2NAEPCh. 13.3A - Prob. 1ACh. 13.3A - Prob. 2ACh. 13.3A - Prob. 3ACh. 13.3A - If the hypotenuse of a right is 30 cm long and one...Ch. 13.3A - For each of the following, determine whether the...Ch. 13.3A - Prob. 8ACh. 13.3A - Prob. 9ACh. 13.3A - Prob. 10ACh. 13.3A - Prob. 11ACh. 13.3A - Find the area of each of the following figuresCh. 13.3A - Find the area of each rhombus given below.Ch. 13.3A - Prob. 14ACh. 13.3A - A company wants to lay a string of buoys across a...Ch. 13.3A - Prob. 17ACh. 13.3A - Prob. 18ACh. 13.3A - Prob. 19ACh. 13.3A - Prob. 20ACh. 13.3A - If the length of the hypotenuse in a 306090...Ch. 13.3A - Prob. 22ACh. 13.3A - Prob. 23ACh. 13.3A - Prob. 24ACh. 13.3A - A boat starts at point A, moves 3 km due north,...Ch. 13.3A - Prob. 26ACh. 13.3A - The diagonals of a rhombus are 8 in. and 12 in....Ch. 13.3A - Prob. 28ACh. 13.3B - Prob. 1ACh. 13.3B - Prob. 2ACh. 13.3B - Prob. 3ACh. 13.3B - Prob. 5ACh. 13.3B - Prob. 6ACh. 13.3B - For each of the following, determine whether the...Ch. 13.3B - Prob. 8ACh. 13.3B - Prob. 9ACh. 13.3B - Prob. 10ACh. 13.3B - Prob. 11ACh. 13.3B - Prob. 12ACh. 13.3B - Prob. 13ACh. 13.3B - Prob. 14ACh. 13.3B - On a baseball field 90-ft square if a player...Ch. 13.3B - Prob. 16ACh. 13.3B - Prob. 17ACh. 13.3B - Prob. 18ACh. 13.3B - Prob. 19ACh. 13.3B - Prob. 20ACh. 13.3B - Prob. 21ACh. 13.3B - Prob. 22ACh. 13.3B - Prob. 23ACh. 13.3B - Prob. 24ACh. 13.3B - Prob. 25ACh. 13.3B - Prob. 26ACh. 13.3B - Prob. 27ACh. 13.3B - Prob. 28ACh. 13.3B - Prob. 29ACh. 13.3B - Prob. 30ACh. 13.4 - Tennis balls are packed tightly three to a can...Ch. 13.4 - Prob. 2MCCh. 13.4 - In the drawing below, cube B was cut from a larger...Ch. 13.4 - Prob. 4MCCh. 13.4 - Prob. 5MCCh. 13.4 - Prob. 6MCCh. 13.4 - Prob. 7MCCh. 13.4 - Prob. 8MCCh. 13.4 - Prob. 9MCCh. 13.4 - A student wonders if she triples each measurement...Ch. 13.4 - Prob. 12MCCh. 13.4 - Abi used the formula SA=r(r+l), where r is the...Ch. 13.4 - Prob. 14MCCh. 13.4 - Prob. 15MCCh. 13.4 - Prob. 16MCCh. 13.4 - Prob. 17MCCh. 13.4 - Prob. 18MCCh. 13.4 - Find the perimeters and the areas of the following...Ch. 13.4 - In the following, the length of the diagonal AC of...Ch. 13.4 - Find the length of the diagonal of a cube whose...Ch. 13.4 - Prob. 22MCCh. 13.4 - Convert the following measures. a. 150m=km b....Ch. 13.4 - Which of the following can be folded to form the...Ch. 13.4A - Which of the following nets could be folded along...Ch. 13.4A - Find the surface area of each of the following...Ch. 13.4A - How many litres of paint must you buy to paint the...Ch. 13.4A - Prob. 4ACh. 13.4A - Assume the radius of Earth is 6370 km and Earth is...Ch. 13.4A - Prob. 6ACh. 13.4A - Prob. 7ACh. 13.4A - Prob. 8ACh. 13.4A - The top of a right rectangular box has an area of...Ch. 13.4A - How does the lateral surface area of a right...Ch. 13.4A - Prob. 11ACh. 13.4A - The sector shown is rolled into cone shape so that...Ch. 13.4A - Prob. 13ACh. 13.4A - Prob. 14ACh. 13.4A - If two right circular cones are similar with radii...Ch. 13.4A - Prob. 16ACh. 13.4A - Prob. 17ACh. 13.4A - Prob. 18ACh. 13.4A - Prob. 19ACh. 13.4A - Prob. 20ACh. 13.4A - Prob. 21ACh. 13.4B - Prob. 1ACh. 13.4B - Prob. 2ACh. 13.4B - Prob. 3ACh. 13.4B - Prob. 4ACh. 13.4B - Prob. 5ACh. 13.4B - Prob. 6ACh. 13.4B - Prob. 7ACh. 13.4B - Prob. 8ACh. 13.4B - Prob. 10ACh. 13.4B - Prob. 11ACh. 13.4B - Prob. 13ACh. 13.4B - Prob. 14ACh. 13.4B - If two right cones are similar with radii of the...Ch. 13.4B - Prob. 16ACh. 13.4B - Prob. 17ACh. 13.4B - Prob. 18ACh. 13.4B - In the figure shown, a right circular cylinder is...Ch. 13.4B - Prob. 20ACh. 13.5 - a. Which will increase the volume of a right...Ch. 13.5 - Explain how you would find the volume of an...Ch. 13.5 - Read the following problems i and ii: i. A tank in...Ch. 13.5 - A furniture company gives an estimate for moving...Ch. 13.5 - A cylinder, a cone, and a sphere have the same...Ch. 13.5 - Two stacks of pennies shown are of the same...Ch. 13.5 - Prob. 7MCCh. 13.5 - A diagonal of a cube that is not the diagonal of a...Ch. 13.5 - Prob. 9MCCh. 13.5 - A right circular cylinder has a 4-in. diameter, is...Ch. 13.5 - Prob. 11MCCh. 13.5 - Explore Internet sources to determine if it is...Ch. 13.5 - A student asks whether the volume of a cube can...Ch. 13.5 - Prob. 15MCCh. 13.5 - Prob. 16MCCh. 13.5 - Prob. 17MCCh. 13.5 - Prob. 18MCCh. 13.5 - Prob. 19MCCh. 13.5 - Find the perimeter and area of the following...Ch. 13.5 - Prob. 21MCCh. 13.5 - Prob. 22MCCh. 13.5 - Prob. 23MCCh. 13.5 - Prob. 24MCCh. 13.5 - Prob. 25MCCh. 13.5 - Prob. 1NAEPCh. 13.5 - Prob. 2NAEPCh. 13.5 - Prob. 3NAEPCh. 13.5A - Prob. 1ACh. 13.5A - Prob. 2ACh. 13.5A - Prob. 3ACh. 13.5A - Prob. 4ACh. 13.5A - Prob. 5ACh. 13.5A - Prob. 6ACh. 13.5A - Prob. 7ACh. 13.5A - Prob. 8ACh. 13.5A - Prob. 9ACh. 13.5A - Prob. 10ACh. 13.5A - Prob. 11ACh. 13.5A - Prob. 12ACh. 13.5A - Prob. 13ACh. 13.5A - Prob. 14ACh. 13.5A - Prob. 15ACh. 13.5A - Prob. 16ACh. 13.5A - Prob. 17ACh. 13.5A - Prob. 18ACh. 13.5A - A right rectangular prism with base ABCD at the...Ch. 13.5A - Prob. 20ACh. 13.5A - Prob. 21ACh. 13.5A - Prob. 22ACh. 13.5A - Prob. 23ACh. 13.5A - Prob. 24ACh. 13.5A - Prob. 25ACh. 13.5A - a. Given any rectangle describe ways to decompose...Ch. 13.5A - Prob. 27ACh. 13.5A - Prob. 28ACh. 13.5A - Prob. 29ACh. 13.5A - Prob. 30ACh. 13.5A - Prob. 31ACh. 13.5B - Prob. 1ACh. 13.5B - Prob. 2ACh. 13.5B - Prob. 3ACh. 13.5B - Find the volume of each of the following, a. Right...Ch. 13.5B - Prob. 5ACh. 13.5B - Prob. 7ACh. 13.5B - Prob. 8ACh. 13.5B - Prob. 9ACh. 13.5B - Prob. 10ACh. 13.5B - Prob. 11ACh. 13.5B - Prob. 12ACh. 13.5B - Prob. 13ACh. 13.5B - Prob. 14ACh. 13.5B - Prob. 15ACh. 13.5B - Prob. 16ACh. 13.5B - Prob. 17ACh. 13.5B - Prob. 18ACh. 13.5B - Prob. 19ACh. 13.5B - Prob. 20ACh. 13.5B - Prob. 21ACh. 13.5B - Prob. 22ACh. 13.5B - Prob. 23ACh. 13.5B - A paper clip has a mass of about 1 g. Is it...Ch. 13.5B - Prob. 25ACh. 13.5B - Prob. 26ACh. 13.5B - If the weight of a 1000 bill before it was...Ch. 13.5B - Prob. 28ACh. 13.5B - Prob. 29ACh. 13.5B - Prob. 30ACh. 13.5B - Prob. 31ACh. 13.CR - Complete the following conversions. a. 50ft=yd b....Ch. 13.CR - Prob. 2CRCh. 13.CR - The diagonal of rectangle has measure 1.3m and a...Ch. 13.CR - Prob. 4CRCh. 13.CR - Prob. 5CRCh. 13.CR - Prob. 6CRCh. 13.CR - Prob. 7CRCh. 13.CR - Lines a,bandc are parallel to the line containing...Ch. 13.CR - Prob. 9CRCh. 13.CR - Prob. 11CRCh. 13.CR - Prob. 12CRCh. 13.CR - Prob. 13CRCh. 13.CR - Prob. 14CRCh. 13.CR - Find the surface area and volume of each of the...Ch. 13.CR - Prob. 16CRCh. 13.CR - Prob. 17CRCh. 13.CR - Prob. 18CRCh. 13.CR - Prob. 19CRCh. 13.CR - Prob. 20CRCh. 13.CR - Prob. 21CRCh. 13.CR - Prob. 22CRCh. 13.CR - On a 55 geoboard, a. Draw a polygon whose...Ch. 13.CR - Prob. 24CRCh. 13.CR - Prob. 25CRCh. 13.CR - Prob. 26CRCh. 13.CR - Prob. 27CRCh. 13.CR - Prob. 28CRCh. 13.CR - Prob. 29CRCh. 13.CR - Prob. 30CRCh. 13.CR - Prob. 31CRCh. 13.CR - Prob. 32CRCh. 13.CR - Prob. 33CRCh. 13.CR - Prob. 34CRCh. 13 - Prob. 4NTCh. 13 - Prob. 6NTCh. 13 - Prob. 7NTCh. 13 - Prob. 8NT
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- Sand and clay studies were conducted at a site in California. Twelve consecutive depths, each about 15 cm deep, were studied and the following percentages of sand in the soil were recorded. 34.4 27.1 30.8 28.0 32.2 27.6 32.8 25.2 31.4 33.5 24.7 28.4 Converting this sequence of numbers to a sequence of symbols A and B, where A indicates a value above the median and B denotes a value below the median gives ABABABABAABB. Test the sequence for randomness about the median with a 5% level of significance. Verify that the number of runs is 10. What is the upper critical value c2?arrow_forward29% of all college students major in STEM (Science, Technology, Engineering, and Math). If 46 college students are randomly selected, find the probability thata. Exactly 11 of them major in STEM. b. At most 12 of them major in STEM. c. At least 11 of them major in STEM. d. Between 11 and 15 (including 11 and 15) of them major in STEM.arrow_forwardSand and clay studies were conducted at a site in California. Twelve consecutive depths, each about 15 cm deep, were studied and the following percentages of sand in the soil were recorded. 27.3 34.6 30.6 27.8 33.4 31.5 27.3 31.2 32.0 24.7 24.4 28.2 Test this sequence for randomness about the median. Converting this sequence of numbers to a sequence of symbols A and B, where A indicates a value above the median and B denotes a value below the median gives BAABAABAABBB. Verify that the number of runs is 7, the lower critical number is 3, and the upper critical number is 11. Use a 5% level of significance. State the conclusion of the test and interpret your results.arrow_forward
- 29% of all college students major in STEM (Science, Technology, Engineering, and Math). If 46 college students are randomly selected, find the probability thata. Exactly 11 of them major in STEM. b. At most 12 of them major in STEM. c. At least 11 of them major in STEM. d. Between 11 and 15 (including 11 and 15) of them major in STEM.arrow_forward4. Assume that a risk-free money market account is added to the market described in Q3. The continuously compounded rate of return on the money market account is log (1.1). (i) For each given μ, use Lagrange multipliers to determine the proportions (as a function of μ) of wealth invested in the three assets available for the minimum variance portfolio with expected return μ. (ii) Determine the market portfolio in this market and calculate its Sharp ratio.arrow_forward3. A market consists of two risky assets with rates of return R₁ and R2 and no risk-free asset. From market data the following have been estimated: ER₁ = 0.25, ER2 = 0.05, Var R₁ = 0.01, Var R2 = 0.04 and the correlation between R1 and R2 is p = -0.75. (i) Given that an investor is targeting a total expected return of μ = 0.2. What portfolio weights should they choose to meet this goal with minimum portfolio variance? Correct all your calculations up to 4 decimal points. (ii) Determine the global minimum-variance portfolio and the expected return and variance of return of this portfolio (4 d.p.). (iii) Sketch the minimum-variance frontier in the μ-σ² plane and indicate the efficient frontier. (iv) Without further calculation, explain how the minimum variance of the investor's portfolio return will change if the two risky assets were independent.arrow_forward
- 2. A landlord is about to write a rental contract for a tenant which lasts T months. The landlord first decides the length T > 0 (need not be an integer) of the contract, the tenant then signs it and pays an initial handling fee of £100 before moving in. The landlord collects the total amount of rent erT at the end of the contract at a continuously compounded rate r> 0, but the contract stipulates that the tenant may leave before T, in which case the landlord only collects the total rent up until the tenant's departure time 7. Assume that 7 is exponentially distributed with rate > 0, λ‡r. (i) Calculate the expected total payment EW the landlord will receive in terms of T. (ii) Assume that the landlord has logarithmic utility U(w) = log(w - 100) and decides that the rental rate r should depend on the contract length T by r(T) = λ √T 1 For each given λ, what T (as a function of X) should the landlord choose so as to maximise their expected utility? Justify your answer. Hint. It might be…arrow_forwardPlease solving problem2 Problem1 We consider a two-period binomial model with the following properties: each period lastsone (1) year and the current stock price is S0 = 4. On each period, the stock price doubleswhen it moves up and is reduced by half when it moves down. The annual interest rateon the money market is 25%. (This model is the same as in Prob. 1 of HW#2).We consider four options on this market: A European call option with maturity T = 2 years and strike price K = 5; A European put option with maturity T = 2 years and strike price K = 5; An American call option with maturity T = 2 years and strike price K = 5; An American put option with maturity T = 2 years and strike price K = 5.(a) Find the price at time 0 of both European options.(b) Find the price at time 0 of both American options. Compare your results with (a)and comment.(c) For each of the American options, describe the optimal exercising strategy.arrow_forwardPlease ensure that all parts of the question are answered thoroughly and clearly. Include a diagram to help explain answers. Make sure the explanation is easy to follow. Would appreciate work done written on paper. Thank you.arrow_forward
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