Finite Mathematics & Its Applications (12th Edition)
12th Edition
ISBN: 9780134507125
Author: Goldstein
Publisher: PEARSON
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Chapter 2, Problem 14RE
To determine
To calculate: The value(s) of k for which
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Chapter 2 Solutions
Finite Mathematics & Its Applications (12th Edition)
Ch. 2.1 - 1. Determine whether the following systems of...Ch. 2.1 - Give the meaning of each of the following...Ch. 2.1 - 3. Perform the indicated elementary row...Ch. 2.1 - State the next elementary row operation that...Ch. 2.1 - In Exercises 1–8, perform the indicated elementary...Ch. 2.1 - Prob. 2ECh. 2.1 - In Exercises 1–8, perform the indicated elementary...Ch. 2.1 - In Exercises 1–8, perform the indicated elementary...Ch. 2.1 - In Exercises 18, perform the indicated elementary...Ch. 2.1 - In Exercises 18, perform the indicated elementary...
Ch. 2.1 - In Exercises 18, perform the indicated elementary...Ch. 2.1 - In Exercises 1–8, perform the indicated elementary...Ch. 2.1 - In Exercises 9–12, write the augmented matrix...Ch. 2.1 - In Exercises 912, write the augmented matrix...Ch. 2.1 - In Exercises 9–12, write the augmented matrix...Ch. 2.1 - In Exercises 912, write the augmented matrix...Ch. 2.1 - In Exercises 13–16, write the system of linear...Ch. 2.1 - In Exercises 1316, write the system of linear...Ch. 2.1 - In Exercises 1316, write the system of linear...Ch. 2.1 - In Exercises 1316, write the system of linear...Ch. 2.1 - In Exercises 17–22, describe in your own words the...Ch. 2.1 - In Exercises 17–22, describe in your own words the...Ch. 2.1 - In Exercises 17–22, describe in your own words the...Ch. 2.1 - In Exercises 1722, describe in your own words the...Ch. 2.1 - In Exercises 1722, describe in your own words the...Ch. 2.1 - In Exercises 17–22, describe in your own words the...Ch. 2.1 - In Exercises 2328, carry out the indicated...Ch. 2.1 - In Exercises 2328, carry out the indicated...Ch. 2.1 - In Exercises 23–28, carry out the indicated...Ch. 2.1 - In Exercises 2328, carry out the indicated...Ch. 2.1 - In Exercises 2328, carry out the indicated...Ch. 2.1 - In Exercises 2328, carry out the indicated...Ch. 2.1 - In Exercises 2936, state the next elementary row...Ch. 2.1 - In Exercises 29–36, state the next elementary row...Ch. 2.1 - In Exercises 29–36, state the next elementary row...Ch. 2.1 - Prob. 32ECh. 2.1 - In Exercises 29–36, state the next elementary row...Ch. 2.1 - In Exercises 29–36, state the next elementary row...Ch. 2.1 - In Exercises 29–36, state the next elementary row...Ch. 2.1 - Prob. 36ECh. 2.1 - In Exercises 37 and 38, two steps of the...Ch. 2.1 - In Exercises 37 and 38, two steps of the...Ch. 2.1 - The screen captures in Exercises 3946 show a...Ch. 2.1 - Prob. 40ECh. 2.1 - The screen captures in Exercises 3946 show a...Ch. 2.1 - Prob. 42ECh. 2.1 - The screen captures in Exercises 39–46 show a...Ch. 2.1 - Prob. 44ECh. 2.1 - The screen captures in Exercises 39–46 show a...Ch. 2.1 - The screen captures in Exercises 39–46 show a...Ch. 2.1 - In Exercises 47-60, solve the linear system by the...Ch. 2.1 - In Exercises 47-60, solve the linear system by the...Ch. 2.1 - In Exercises 47-60, solve the linear system by the...Ch. 2.1 - In Exercises 47-60, solve the linear system by the...Ch. 2.1 - In Exercises 47-60, solve the linear system by the...Ch. 2.1 - In Exercises 47-60, solve the linear system by the...Ch. 2.1 - In Exercises 47-60, solve the linear system by the...Ch. 2.1 - In Exercises 47-60, solve the linear system by the...Ch. 2.1 - In Exercises 47-60, solve the linear system by the...Ch. 2.1 - In Exercises 47-60, solve the linear system by the...Ch. 2.1 - In Exercises 47-60, solve the linear system by the...Ch. 2.1 - In Exercises 47-60, solve the linear system by the...Ch. 2.1 - In Exercises 47-60, solve the linear system by the...Ch. 2.1 - In Exercises 47-60, solve the linear system by the...Ch. 2.1 - A baked potato smothered with cheddar cheese...Ch. 2.1 - A high school math department purchased brand A...Ch. 2.1 - Exercises 63 and 64 are multiple choice exercises...Ch. 2.1 - Exercises 63 and 64 are multiple choice exercises...Ch. 2.1 - Sales A street vendor has a total of 350 short-...Ch. 2.1 - Sales A grocery store carries two brands of...Ch. 2.1 - Movie tickets A 275-seat movie theater charges...Ch. 2.1 - Batting average A baseball players batting average...Ch. 2.1 - 69. Areas of countries The United States and...Ch. 2.1 - College Majors The bar graph in Fig. 6 gives the...Ch. 2.1 - Coffee Blends A one-pound blend of coffee uses...Ch. 2.1 - 72. Nut Mixture A one-pound mixture of nuts...Ch. 2.1 - 73. Investment planning A bank wishes to invest a...Ch. 2.1 - Nutrition planning A dietitian wishes to plan a...Ch. 2.1 - Prob. 75ECh. 2.1 - Prob. 76ECh. 2.1 - In Exercises 77–80, use technology to put the...Ch. 2.1 - Prob. 78ECh. 2.1 - Prob. 79ECh. 2.1 - Prob. 80ECh. 2.1 - Prob. 81ECh. 2.1 - Prob. 82ECh. 2.1 - Prob. 83ECh. 2.1 - Prob. 84ECh. 2.2 - Find a specific solution to a system of linear...Ch. 2.2 - 2. Find all solutions of this system of linear...Ch. 2.2 - In Exercises 1–8, pivot the matrix about the...Ch. 2.2 - In Exercises 1–8, pivot the matrix about the...Ch. 2.2 - In Exercises 1–8, pivot the matrix about the...Ch. 2.2 - In Exercises 1–8, pivot the matrix about the...Ch. 2.2 - In Exercises 1–8, pivot the matrix about the...Ch. 2.2 - In Exercises 1–8, pivot the matrix about the...Ch. 2.2 - In Exercises 18, pivot the matrix about the...Ch. 2.2 - In Exercises 18, pivot the matrix about the...Ch. 2.2 - The screen captures in Exercises 9–16 show a...Ch. 2.2 - The screen captures in Exercises 9–16 show a...Ch. 2.2 - The screen captures in Exercises 916 show a...Ch. 2.2 - The screen captures in Exercises 916 show a...Ch. 2.2 - The screen captures in Exercises 916 show a...Ch. 2.2 - The screen captures in Exercises 9–16 show a...Ch. 2.2 - Prob. 15ECh. 2.2 - Prob. 16ECh. 2.2 - In Exercise 1736, use the Gauss-Jordan elimination...Ch. 2.2 - In Exercise 1736, use the Gauss-Jordan elimination...Ch. 2.2 - In Exercise 1736, use the Gauss-Jordan elimination...Ch. 2.2 - In Exercise 1736, use the Gauss-Jordan elimination...Ch. 2.2 - In Exercise 1736, use the Gauss-Jordan elimination...Ch. 2.2 - In Exercise 17–36, use the Gauss-Jordan...Ch. 2.2 - In Exercise 17–36, use the Gauss-Jordan...Ch. 2.2 - In Exercise 1736, use the Gauss-Jordan elimination...Ch. 2.2 - In Exercise 17–36, use the Gauss-Jordan...Ch. 2.2 - In Exercise 17–36, use the Gauss-Jordan...Ch. 2.2 - In Exercise 1736, use the Gauss-Jordan elimination...Ch. 2.2 - In Exercise 17–36, use the Gauss-Jordan...Ch. 2.2 - In Exercise 17–36, use the Gauss-Jordan...Ch. 2.2 - In Exercise 17–36, use the Gauss-Jordan...Ch. 2.2 - Prob. 31ECh. 2.2 - In Exercise 17–36, use the Gauss-Jordan...Ch. 2.2 - In Exercise 1736, use the Gauss-Jordan elimination...Ch. 2.2 - In Exercise 1736, use the Gauss-Jordan elimination...Ch. 2.2 - In Exercise 17–36, use the Gauss-Jordan...Ch. 2.2 - Prob. 36ECh. 2.2 - In Exercises 37–40, find three solutions to the...Ch. 2.2 - In Exercises 37–40, find three solutions to the...Ch. 2.2 - In Exercises 3740, find three solutions to the...Ch. 2.2 - In Exercises 37–40, find three solutions to the...Ch. 2.2 - 41. Nutrition planning In a laboratory experiment,...Ch. 2.2 - Nutrition planning Rework Exercise 41 with the...Ch. 2.2 - Nutrition planning The nutritional content of...Ch. 2.2 - 44. Nutrition planning Refer to Exercise 43. Show...Ch. 2.2 - Furniture Manufacturing A furniture manufacturer...Ch. 2.2 - Computer equipment An office manager placed an...Ch. 2.2 - 47. Quilting Granny’s Custom Quilts receives an...Ch. 2.2 - 48. Purchasing Options Amanda is decorating her...Ch. 2.2 - 49. For what values(s) of k will the following...Ch. 2.2 - For what value of k will the following system of...Ch. 2.2 - Figure 5 shows the graphs of the equations from a...Ch. 2.2 - Prob. 52ECh. 2.2 - In Exercises 53–56, graph the three equations...Ch. 2.2 - Prob. 54ECh. 2.2 - Prob. 55ECh. 2.2 - Prob. 56ECh. 2.2 - Apply rref or row reduce to the matrix in Example...Ch. 2.2 - Prob. 58ECh. 2.3 - Compute [3121012041][710542604].Ch. 2.3 - 2. Give the system of linear equations that is...Ch. 2.3 - Give a matrix equation equivalent to this system...Ch. 2.3 - In Exercises 16, give the size and special...Ch. 2.3 - Prob. 2ECh. 2.3 - In Exercises 16, give the size and special...Ch. 2.3 - Prob. 4ECh. 2.3 - In Exercises 16, give the size and special...Ch. 2.3 - In Exercises 1–6, give the size and special...Ch. 2.3 - Exercises 7–10 refer to the matrix .
7. Find and...Ch. 2.3 - Exercises 710 refer to the 23 matrix A=[246031]....Ch. 2.3 - Exercises 710 refer to the 23 matrix A=[246031]....Ch. 2.3 - Exercises 7–10 refer to the matrix .
10. For what...Ch. 2.3 - In Exercises 11-26, perform the indicated matrix...Ch. 2.3 - In Exercises 11-26, perform the indicated matrix...Ch. 2.3 - In Exercises 11-26, perform the indicated matrix...Ch. 2.3 - In Exercises 11-26, perform the indicated matrix...Ch. 2.3 - In Exercises 11-26, perform the indicated matrix...Ch. 2.3 - In Exercises 11-26, perform the indicated matrix...Ch. 2.3 - In Exercises 11-26, perform the indicated matrix...Ch. 2.3 - In Exercises 11-26, perform the indicated matrix...Ch. 2.3 - In Exercises 11-26, perform the indicated matrix...Ch. 2.3 - In Exercises 11-26, perform the indicated matrix...Ch. 2.3 - In Exercises 11-26, perform the indicated matrix...Ch. 2.3 - In Exercises 11-26, perform the indicated matrix...Ch. 2.3 - In Exercises 11-26, perform the indicated matrix...Ch. 2.3 - In Exercises 11-26, perform the indicated matrix...Ch. 2.3 - In Exercises 11-26, perform the indicated matrix...Ch. 2.3 - In Exercises 11-26, perform the indicated matrix...Ch. 2.3 - In Exercises 27–32, the sizes of two matrices are...Ch. 2.3 - In Exercises 27–32, the sizes of two matrices are...Ch. 2.3 - In Exercises 27–32, the sizes of two matrices are...Ch. 2.3 - In Exercises 27–32, the sizes of two matrices are...Ch. 2.3 - In Exercises 27–32, the sizes of two matrices are...Ch. 2.3 - In Exercises 2732, the sizes of two matrices are...Ch. 2.3 - In Exercises 33-52, perform the...Ch. 2.3 - In Exercises 33-52, perform the multiplication....Ch. 2.3 - In Exercises 33-52, perform the multiplication....Ch. 2.3 - In Exercises 33-52, perform the multiplication....Ch. 2.3 - In Exercises 33-52, perform the...Ch. 2.3 - In Exercises 33-52, perform the multiplication....Ch. 2.3 - In Exercises 33-52, perform the...Ch. 2.3 - In Exercises 33-52, perform the multiplication....Ch. 2.3 - In Exercises 33-52, perform the multiplication....Ch. 2.3 - In Exercises 33-52, perform the...Ch. 2.3 - In Exercises 33-52, perform the multiplication....Ch. 2.3 - Prob. 44ECh. 2.3 - In Exercises 33-52, perform the multiplication....Ch. 2.3 - In Exercises 33-52, perform the...Ch. 2.3 - Prob. 47ECh. 2.3 - Prob. 48ECh. 2.3 - Prob. 49ECh. 2.3 - In Exercises 33-52, perform the multiplication....Ch. 2.3 - In Exercises 33-52, perform the...Ch. 2.3 - In Exercises 33-52, perform the...Ch. 2.3 - In Exercises 53-56, give the system of linear...Ch. 2.3 - In Exercises 53-56, give the system of linear...Ch. 2.3 - In Exercises 53-56, give the system of linear...Ch. 2.3 - In Exercises 53-56, give the system of linear...Ch. 2.3 - In Exercises 5760, write the given system of...Ch. 2.3 - In Exercises 57–60, write the given system of...Ch. 2.3 - In Exercises 57–60, write the given system of...Ch. 2.3 - In Exercises 57–60, write the given system of...Ch. 2.3 - Prob. 61ECh. 2.3 - Prob. 62ECh. 2.3 - Prob. 63ECh. 2.3 - Prob. 64ECh. 2.3 - Wardrobe costs The quantities of pants, shirts,...Ch. 2.3 - Retail Sales Two stores sell the exact same brand...Ch. 2.3 - Retail Sales A candy shop sells various items for...Ch. 2.3 - Wholesale and retail Sales A company has three...Ch. 2.3 - Prob. 69ECh. 2.3 - 70. Semester Grades A professor bases semester...Ch. 2.3 - Prob. 71ECh. 2.3 - Prob. 72ECh. 2.3 - 73. Labor Costs Suppose that a contractor employs...Ch. 2.3 - Prob. 74ECh. 2.3 - Nutrition Analysis Mikeys diet consists of food X...Ch. 2.3 - Bakery Sales A bakery makes three types of...Ch. 2.3 - Revenue A community fitness center has a pool and...Ch. 2.3 - Prob. 78ECh. 2.3 - 79. Production Planning A bakery sells Boston...Ch. 2.3 - Prob. 80ECh. 2.3 - Prob. 81ECh. 2.3 - MP3 Sales A store sells three types of MP3...Ch. 2.3 - Prob. 83ECh. 2.3 - Prob. 84ECh. 2.3 - Prob. 85ECh. 2.3 - Prob. 86ECh. 2.3 - Prob. 87ECh. 2.3 - Prob. 88ECh. 2.3 - Prob. 89ECh. 2.3 - Prob. 90ECh. 2.3 - Prob. 91ECh. 2.3 - Prob. 92ECh. 2.3 - Prob. 93ECh. 2.3 - Prob. 94ECh. 2.3 - Prob. 95ECh. 2.3 - Prob. 96ECh. 2.3 - Prob. 97ECh. 2.3 - Prob. 98ECh. 2.4 - Show that the inverse of...Ch. 2.4 - 2. Use the method of this section to solve the...Ch. 2.4 - In Exercises 1 and 2, use the fact that...Ch. 2.4 - In Exercises 1 and 2, use the fact that...Ch. 2.4 - In Exercises 310, find the inverse of the given...Ch. 2.4 - In Exercises 310, find the inverse of the given...Ch. 2.4 - In Exercises 3–10, find the inverse of the given...Ch. 2.4 - In Exercises 3–10, find the inverse of the given...Ch. 2.4 - In Exercises 3–10, find the inverse of the given...Ch. 2.4 - In Exercises 3–10, find the inverse of the given...Ch. 2.4 - In Exercises 3–10, find the inverse of the given...Ch. 2.4 - In Exercises 310, find the inverse of the given...Ch. 2.4 - In Exercises 11–14, use a matrix equation to solve...Ch. 2.4 - In Exercises 1114, use a matrix equation to solve...Ch. 2.4 - In Exercises 1114, use a matrix equation to solve...Ch. 2.4 - In Exercises 1114, use a matrix equation to solve...Ch. 2.4 - Marriage Trends It is found that the number of...Ch. 2.4 - Epidemiology A flu epidemic is spreading through a...Ch. 2.4 - 17. Housing Trends Statistics show that, at a...Ch. 2.4 - Performance on Tests A teacher estimates that, of...Ch. 2.4 - In Exercises 19–22, use the fact that the...Ch. 2.4 - In Exercises 19–22, use the fact that the...Ch. 2.4 - In Exercises 19–22, use the fact that the...Ch. 2.4 - In Exercises 19–22, use the fact that the...Ch. 2.4 - In Exercises 23–26, use the fact that the...Ch. 2.4 - In Exercises 2326, use the fact that the following...Ch. 2.4 - In Exercises 23–26, use the fact that the...Ch. 2.4 - In Exercises 2326, use the fact that the following...Ch. 2.4 - 27. Show that if and , then the inverse of is...Ch. 2.4 - (True or False) If B is the inverse of A, then A...Ch. 2.4 - Prob. 29ECh. 2.4 - 30. If and , what is A?
Ch. 2.4 - 31. Show that, if AB is a matrix of all zeros and...Ch. 2.4 - Consider the matrices A=[3152] and B=[6252]. Show...Ch. 2.4 - Find a 22 matrix A and a 21 column matrix B for...Ch. 2.4 - 34. Find a matrix A and a column matrix B for...Ch. 2.4 - In Exercises 3538, use the inverse operation to...Ch. 2.4 - In Exercises 35–38, use the inverse operation to...Ch. 2.4 - In Exercises 35–38, use the inverse operation to...Ch. 2.4 - In Exercises 35–38, use the inverse operation to...Ch. 2.4 - In Exercises 3942, calculate the solution by using...Ch. 2.4 - In Exercises 39–42, calculate the solution by...Ch. 2.4 - In Exercises 3942, calculate the solution by using...Ch. 2.4 - In Exercises 39–42, calculate the solution by...Ch. 2.4 - 43. Try finding the inverse of a matrix that does...Ch. 2.5 - 1. Use the Gauss–Jordan method to calculate the...Ch. 2.5 - Solve the system of linear equations...Ch. 2.5 - In Exercises 1–12, use the Gauss–Jordan method to...Ch. 2.5 - In Exercises 1–12, use the Gauss–Jordan method to...Ch. 2.5 - In Exercises 1–12, use the Gauss–Jordan method to...Ch. 2.5 - In Exercises 1–12, use the Gauss–Jordan method to...Ch. 2.5 - In Exercises 1–12, use the Gauss–Jordan method to...Ch. 2.5 - In Exercises 1–12, use the Gauss–Jordan method to...Ch. 2.5 - In Exercises 112, use the GaussJordan method to...Ch. 2.5 - In Exercises 1–12, use the Gauss–Jordan method to...Ch. 2.5 - In Exercises 112, use the GaussJordan method to...Ch. 2.5 - In Exercises 112, use the GaussJordan method to...Ch. 2.5 - In Exercises 112, use the GaussJordan method to...Ch. 2.5 - In Exercises 1–12, use the Gauss–Jordan method to...Ch. 2.5 - In Exercises 13–18, use an inverse matrix to solve...Ch. 2.5 - In Exercises 13–18, use an inverse matrix to solve...Ch. 2.5 - In Exercises 1318, use an inverse matrix to solve...Ch. 2.5 - In Exercises 13–18, use an inverse matrix to solve...Ch. 2.5 - In Exercises 13–18, use an inverse matrix to solve...Ch. 2.5 - In Exercises 1318, use an inverse matrix to solve...Ch. 2.5 - 19. Find a matrix A for which
.
Ch. 2.5 - Find a 22 matrix A for which [2513]A=[1042].Ch. 2.5 - College Degrees Figure 1 gives the responses of a...Ch. 2.5 - 22. College Choices Figure 2 gives the responses...Ch. 2.5 - 23. High School attended Figure 3 gives the...Ch. 2.5 - Placement Tests Figure 4 gives the responses of a...Ch. 2.6 - Let...Ch. 2.6 - Prob. 2CYUCh. 2.6 - Prob. 1ECh. 2.6 - Prob. 2ECh. 2.6 - Prob. 3ECh. 2.6 - Prob. 4ECh. 2.6 - Prob. 5ECh. 2.6 - Prob. 6ECh. 2.6 - Prob. 7ECh. 2.6 - Prob. 8ECh. 2.6 - Prob. 9ECh. 2.6 - Prob. 10ECh. 2.6 - Prob. 11ECh. 2.6 - Three-Sector Economy In Exercises 112, suppose...Ch. 2.6 - 13. Industrial Production Suppose that, in the...Ch. 2.6 - Conglomerate Suppose that the conglomerate of...Ch. 2.6 - Prob. 15ECh. 2.6 - 16. Industrial Production Suppose that the economy...Ch. 2.6 - Industrial Production In the economy of Example 1,...Ch. 2.6 - Prob. 18ECh. 2.6 - Prob. 19ECh. 2.6 - Prob. 20ECh. 2.6 - Prob. 21ECh. 2.6 - Prob. 22ECh. 2.6 - Prob. 23ECh. 2.6 - Prob. 24ECh. 2.6 - Prob. 25ECh. 2.6 - Three-Sector Economy An economy consists of the...Ch. 2.6 - 27. Localized Economy A town has a merchant, a...Ch. 2.6 - Prob. 28ECh. 2.6 - Prob. 29ECh. 2.6 - Prob. 30ECh. 2.6 - Prob. 31ECh. 2.6 - Prob. 32ECh. 2 - What is meant by a solution to a system of linear...Ch. 2 - What is a matrix?Ch. 2 - 3. State the three elementary row operations on...Ch. 2 - Prob. 4FCCECh. 2 - What is meant by pivoting a matrix about a nonzero...Ch. 2 - 6. State the Gauss–Jordan elimination method for...Ch. 2 - 7. What is a row matrix? Column matrix? Square...Ch. 2 - Prob. 8FCCECh. 2 - Define the sum and difference of two matrices.Ch. 2 - Define the product of two matrices.Ch. 2 - Prob. 11FCCECh. 2 - Prob. 12FCCECh. 2 - Prob. 13FCCECh. 2 - 14. Explain how to use the inverse of a matrix to...Ch. 2 - Prob. 15FCCECh. 2 - Prob. 16FCCECh. 2 - Prob. 17FCCECh. 2 - Prob. 1RECh. 2 - Prob. 2RECh. 2 - Prob. 3RECh. 2 - In Exercises 3–8, use the Gauss–Jordan elimination...Ch. 2 - Prob. 5RECh. 2 - Prob. 6RECh. 2 - Prob. 7RECh. 2 - Prob. 8RECh. 2 - Prob. 9RECh. 2 - Prob. 10RECh. 2 - Prob. 11RECh. 2 - Prob. 12RECh. 2 - Prob. 13RECh. 2 - Prob. 14RECh. 2 - Prob. 15RECh. 2 - Prob. 16RECh. 2 - Prob. 17RECh. 2 - Prob. 18RECh. 2 - Crop Allocation Farmer Brown has 1000 acres of...Ch. 2 - Equipment Sales A company makes backyard...Ch. 2 - Prob. 21RECh. 2 - 22. Job Earnings Sara, Quinn, Tamia, and Zack are...Ch. 2 - Prob. 23RECh. 2 - Prob. 24RECh. 2 - Two-Sector Economy The economy of a small country...Ch. 2 - Coins Joe has $3.30 in his pocket, made up of...Ch. 2 - Identify each statement as true or false. (a) If a...Ch. 2 - Identify each statement as true or false. (a)...Ch. 2 - Prob. 29RECh. 2 - Prob. 30RECh. 2 - Prob. 31RECh. 2 - Prob. 32RECh. 2 - Prob. 33RECh. 2 - Population Dynamics In 1991, the U.S. Fish and...Ch. 2 - Population Dynamics In 1991, the U.S. Fish and...Ch. 2 - Population Dynamics In 1991, the U.S. Fish and...Ch. 2 - Prob. 4PCh. 2 - Prob. 5PCh. 2 - Prob. 6PCh. 2 - Prob. 7PCh. 2 - Prob. 8P
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- Question 5. We consider a put option with strike price K and expiration T. This option is priced using a 1-period CRR model. We consider r > 0, and σ > 0 very large. What is the approximate price of the option? In other words, what is the limit of the price of the option as σ∞. (Briefly justify your answer.)arrow_forwardQuestion 6. You collect daily data for the stock of a company Z over the past 4 months (i.e. 80 days) and calculate the log-returns (yk)/(-1. You want to build a CRR model for the evolution of the stock. The expected value and standard deviation of the log-returns are y = 0.06 and Sy 0.1. The money market interest rate is r = 0.04. Determine the risk-neutral probability of the model.arrow_forwardSeveral markets (Japan, Switzerland) introduced negative interest rates on their money market. In this problem, we will consider an annual interest rate r < 0. We consider a stock modeled by an N-period CRR model where each period is 1 year (At = 1) and the up and down factors are u and d. (a) We consider an American put option with strike price K and expiration T. Prove that if <0, the optimal strategy is to wait until expiration T to exercise.arrow_forward
- We consider an N-period CRR model where each period is 1 year (At = 1), the up factor is u = 0.1, the down factor is d = e−0.3 and r = 0. We remind you that in the CRR model, the stock price at time tn is modeled (under P) by Sta = So exp (μtn + σ√AtZn), where (Zn) is a simple symmetric random walk. (a) Find the parameters μ and σ for the CRR model described above. (b) Find P Ste So 55/50 € > 1). StN (c) Find lim P 804-N (d) Determine q. (You can use e- 1 x.) Ste (e) Find Q So (f) Find lim Q 004-N StN Soarrow_forwardIn this problem, we consider a 3-period stock market model with evolution given in Fig. 1 below. Each period corresponds to one year. The interest rate is r = 0%. 16 22 28 12 16 12 8 4 2 time Figure 1: Stock evolution for Problem 1. (a) A colleague notices that in the model above, a movement up-down leads to the same value as a movement down-up. He concludes that the model is a CRR model. Is your colleague correct? (Explain your answer.) (b) We consider a European put with strike price K = 10 and expiration T = 3 years. Find the price of this option at time 0. Provide the replicating portfolio for the first period. (c) In addition to the call above, we also consider a European call with strike price K = 10 and expiration T = 3 years. Which one has the highest price? (It is not necessary to provide the price of the call.) (d) We now assume a yearly interest rate r = 25%. We consider a Bermudan put option with strike price K = 10. It works like a standard put, but you can exercise it…arrow_forwardIn this problem, we consider a 2-period stock market model with evolution given in Fig. 1 below. Each period corresponds to one year (At = 1). The yearly interest rate is r = 1/3 = 33%. This model is a CRR model. 25 15 9 10 6 4 time Figure 1: Stock evolution for Problem 1. (a) Find the values of up and down factors u and d, and the risk-neutral probability q. (b) We consider a European put with strike price K the price of this option at time 0. == 16 and expiration T = 2 years. Find (c) Provide the number of shares of stock that the replicating portfolio contains at each pos- sible position. (d) You find this option available on the market for $2. What do you do? (Short answer.) (e) We consider an American put with strike price K = 16 and expiration T = 2 years. Find the price of this option at time 0 and describe the optimal exercising strategy. (f) We consider an American call with strike price K ○ = 16 and expiration T = 2 years. Find the price of this option at time 0 and describe…arrow_forward
- No chatgpt pls will upvote Alreadyarrow_forwardFind the LaPla se trnsofrom of a) chi-square Distribution. b) Normal Distribution. C) Gamma Distribution. prove that Binomial (n, 2) Poisson (2) *********************arrow_forward2.2, 13.2-13.3) question: 5 point(s) possible ubmit test The accompanying table contains the data for the amounts (in oz) in cans of a certain soda. The cans are labeled to indicate that the contents are 20 oz of soda. Use the sign test and 0.05 significance level to test the claim that cans of this soda are filled so that the median amount is 20 oz. If the median is not 20 oz, are consumers being cheated? Click the icon to view the data. What are the null and alternative hypotheses? OA. Ho: Medi More Info H₁: Medi OC. Ho: Medi H₁: Medi Volume (in ounces) 20.3 20.1 20.4 Find the test stat 20.1 20.5 20.1 20.1 19.9 20.1 Test statistic = 20.2 20.3 20.3 20.1 20.4 20.5 Find the P-value 19.7 20.2 20.4 20.1 20.2 20.2 P-value= (R 19.9 20.1 20.5 20.4 20.1 20.4 Determine the p 20.1 20.3 20.4 20.2 20.3 20.4 Since the P-valu 19.9 20.2 19.9 Print Done 20 oz 20 oz 20 oz 20 oz ce that the consumers are being cheated.arrow_forward
- T Teenage obesity (O), and weekly fast-food meals (F), among some selected Mississippi teenagers are: Name Obesity (lbs) # of Fast-foods per week Josh 185 10 Karl 172 8 Terry 168 9 Kamie Andy 204 154 12 6 (a) Compute the variance of Obesity, s²o, and the variance of fast-food meals, s², of this data. [Must show full work]. (b) Compute the Correlation Coefficient between O and F. [Must show full work]. (c) Find the Coefficient of Determination between O and F. [Must show full work]. (d) Obtain the Regression equation of this data. [Must show full work]. (e) Interpret your answers in (b), (c), and (d). (Full explanations required). Edit View Insert Format Tools Tablearrow_forwardH.w WI M Wz dy A Sindax Sind ①dlmax У тах at 0.75m from A W=6KN/M L=2 W2 = 9 KN/m P= 10 KN Barrow_forwardNo chatgpt pls will upvotearrow_forward
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