EP MATHEMATICS FOR THE TRADES
11th Edition
ISBN: 9780134758817
Author: SAUNDERS
Publisher: PEARSON CO
expand_more
expand_more
format_list_bulleted
Videos
Question
Chapter 2, Problem 4CPS
To determine
To add: The fractions
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
You have been hired as an intern to run analyses on the data and report the results back to Sarah; the five questions that Sarah needs you to address are given below.
Does there appear to be a positive or negative relationship between price and screen size? Use a scatter plot to examine the relationship.
Determine and interpret the correlation coefficient between the two variables. In your interpretation, discuss the direction of the relationship (positive, negative, or zero relationship). Also discuss the strength of the relationship.
Estimate the relationship between screen size and price using a simple linear regression model and interpret the estimated coefficients. (In your interpretation, tell the dollar amount by which price will change for each unit of increase in screen size).
Include the manufacturer dummy variable (Samsung=1, 0 otherwise) and estimate the relationship between screen size, price and manufacturer dummy as a multiple linear regression model.
Interpret the…
Does there appear to be a positive or negative relationship between price and screen size? Use a scatter plot to examine the relationship. How to take snapshots: if you use a MacBook, press Command+ Shift+4 to take snapshots. If you are using Windows, use the Snipping Tool to take snapshots.
Question 1: Determine and interpret the correlation coefficient between the two variables. In your interpretation, discuss the direction of the relationship (positive, negative, or zero relationship). Also discuss the strength of the relationship.
Value of correlation coefficient:
Direction of the relationship (positive, negative, or zero relationship):
Strength of the relationship (strong/moderate/weak):
Question 2: Estimate the relationship between screen size and price using a simple linear regression model and interpret the estimated coefficients. In your interpretation, tell the dollar amount by which price will change for each unit of increase in screen size. (The answer for the…
Tri-County Utilities, Inc., supplies natural gas to customers in a three-county area. The company purchases natural gas from two companies: Southern Gas and Northwest Gas.
Demand forecasts for the coming winter season are as follows: Hamilton County, 400 units; Butler County, 200 units; and Clermont County, 300 units. Contracts to provide the following quantities have been written: Southern Gas, 500 units; and Northwest Gas, 400 units. Distribution costs for the counties vary, depending upon the location of the suppliers. The distribution costs per unit (in thousands of dollars)
are as follows.
From
To
Hamilton Butler
Clermont
Southern Gas
10
20
15
Northwest Gas
12
15
18
(a) Develop a network representation of this problem. (Submit a file with a maximum size of 1 MB.)
Choose File No file chosen
Assignment 3 graph.docx
Score: 1 out of 1
Comment:
(b) Develop a linear programming model that can be used to determine the plan that will minimize total distribution costs (in thousands of…
Chapter 2 Solutions
EP MATHEMATICS FOR THE TRADES
Ch. 2.1 - What fraction of the box does the shaded region...Ch. 2.1 - Reduce 48 to lowest terms.Ch. 2.1 - Write as a mixed number. 174Ch. 2.1 - Write as a mixed number. 85Ch. 2.1 - Write as a mixed number. 118Ch. 2.1 - Write as a mixed number. 4016Ch. 2.1 - Write as a mixed number. 32Ch. 2.1 - Prob. 6AECh. 2.1 - Prob. 7AECh. 2.1 - Prob. 8AE
Ch. 2.1 - Write as a mixed number. 8032Ch. 2.1 - Write as a mixed number. 52Ch. 2.1 - Write as an improper fraction. 213Ch. 2.1 - Write as an improper fraction. 712Ch. 2.1 - Write as an improper fraction. 838Ch. 2.1 - Prob. 4BECh. 2.1 - Prob. 5BECh. 2.1 - Prob. 6BECh. 2.1 - Prob. 7BECh. 2.1 - Prob. 8BECh. 2.1 - Write as an improper fraction. 456Ch. 2.1 - Prob. 10BECh. 2.1 - Complete. 78=?16Ch. 2.1 - Complete. 34=?16Ch. 2.1 - Complete. 18=?64Ch. 2.1 - Prob. 4CECh. 2.1 - Complete. 114=?16Ch. 2.1 - Complete. 278=?32Ch. 2.1 - Prob. 7CECh. 2.1 - Complete. 1116=?32Ch. 2.1 - Prob. 9CECh. 2.1 - Prob. 10CECh. 2.1 - Prob. 11CECh. 2.1 - Prob. 12CECh. 2.1 - Write in lowest terms. 416Ch. 2.1 - Write in lowest terms. 46Ch. 2.1 - Write in lowest terms. 616Ch. 2.1 - Prob. 4DECh. 2.1 - Write in lowest terms. 410Ch. 2.1 - Prob. 6DECh. 2.1 - Prob. 7DECh. 2.1 - Prob. 8DECh. 2.1 - Prob. 9DECh. 2.1 - Prob. 10DECh. 2.1 - Prob. 11DECh. 2.1 - Write in lowest terms. 1035Ch. 2.1 - Prob. 13DECh. 2.1 - Prob. 14DECh. 2.1 - Write in lowest terms. 3824Ch. 2.1 - Prob. 1EECh. 2.1 - Prob. 2EECh. 2.1 - Prob. 3EECh. 2.1 - Prob. 4EECh. 2.1 - E. Which is larger? 78or56Ch. 2.1 - Prob. 6EECh. 2.1 - Prob. 7EECh. 2.1 - Prob. 8EECh. 2.1 - Prob. 9EECh. 2.1 - E. Which is larger? 312or274Ch. 2.1 - Prob. 11EECh. 2.1 - Prob. 12EECh. 2.1 - F. Practical Applications Carpentry An apprentice...Ch. 2.1 - F. Practical Applications Electrical Trades An...Ch. 2.1 - F. Practical Applications The numbers 227, 196,...Ch. 2.1 - F. Practical Applications Sheet Metal Trades Which...Ch. 2.1 - F. Practical Applications Plumbing Is it possible...Ch. 2.1 - F. Practical Applications Sheet Metal Trades...Ch. 2.1 - F. Practical Applications Printing A printer has...Ch. 2.1 - F. Practical Applications Machine Trades A...Ch. 2.1 - F. Practical Applications Landscaping Before it...Ch. 2.1 - F. Practical Applications Roofing A ridge beam...Ch. 2.1 - F. Practical Applications Construction A 34-in....Ch. 2.1 - Prob. 12FECh. 2.1 - F. Practical Applications General Trades The...Ch. 2.2 - What is half of 18?Ch. 2.2 - Write 2416 as a mixed number in lowest terms.Ch. 2.2 - Multiply and write the answer in lowest terms....Ch. 2.2 - Multiply and write the answer in lowest terms....Ch. 2.2 - Multiply and write the answer in lowest terms....Ch. 2.2 - Multiply and write the answer in lowest terms. 612Ch. 2.2 - Multiply and write the answer in lowest terms. 893Ch. 2.2 - Prob. 6AECh. 2.2 - Multiply and write the answer in lowest terms....Ch. 2.2 - Multiply and write the answer in lowest terms....Ch. 2.2 - Multiply and write the answer in lowest terms....Ch. 2.2 - Multiply and write the answer in lowest terms....Ch. 2.2 - Multiply and write the answer in lowest terms....Ch. 2.2 - Multiply and write the answer in lowest terms....Ch. 2.2 - Multiply and write the answer in lowest terms....Ch. 2.2 - Multiply and write the answer in lowest terms....Ch. 2.2 - Multiply and write the answer in lowest terms....Ch. 2.2 - Multiply and write the answer in lowest terms....Ch. 2.2 - Multiply and write the answer in lowest terms....Ch. 2.2 - Multiply and write the answer in lowest terms....Ch. 2.2 - Prob. 19AECh. 2.2 - Prob. 20AECh. 2.2 - Prob. 21AECh. 2.2 - Prob. 22AECh. 2.2 - Prob. 23AECh. 2.2 - Prob. 24AECh. 2.2 - Prob. 25AECh. 2.2 - Prob. 1BECh. 2.2 - Prob. 2BECh. 2.2 - Prob. 3BECh. 2.2 - Prob. 4BECh. 2.2 - Find. 12 of 112Ch. 2.2 - Prob. 6BECh. 2.2 - Prob. 7BECh. 2.2 - Prob. 8BECh. 2.2 - Find. 43 of 34Ch. 2.2 - Prob. 10BECh. 2.2 - Prob. 11BECh. 2.2 - B. Find. 35of4Ch. 2.2 - B. Find. 716of6Ch. 2.2 - Prob. 14BECh. 2.2 - Prob. 15BECh. 2.2 - Prob. 16BECh. 2.2 - Practical Applications Flooring and Carpeting Find...Ch. 2.2 - Prob. 2CECh. 2.2 - Practical Applications Roofing Shingles are laid...Ch. 2.2 - Prob. 4CECh. 2.2 - Prob. 5CECh. 2.2 - Prob. 6CECh. 2.2 - Prob. 7CECh. 2.2 - Practical Applications Machine Trades What is the...Ch. 2.2 - Practical Applications Manufacturing How many...Ch. 2.2 - Practical Applications Plumbing A plumber cut...Ch. 2.2 - Practical Applications Machine Trades How far will...Ch. 2.2 - Practical Applications Landscaping A landscaping...Ch. 2.2 - Practical Applications Drafting If 38 in. on a...Ch. 2.2 - Practical Applications Manufacturing What is the...Ch. 2.2 - Practical Applications Machine Trades How long...Ch. 2.2 - Prob. 16CECh. 2.2 - Prob. 17CECh. 2.2 - Prob. 18CECh. 2.2 - Practical Applications Photography A photograph...Ch. 2.2 - Prob. 20CECh. 2.2 - Prob. 21CECh. 2.2 - Practical Applications Water/Wastewater Treatment...Ch. 2.2 - Prob. 23CECh. 2.2 - Practical Applications Plumbing To find the degree...Ch. 2.2 - Prob. 25CECh. 2.2 - Prob. 26CECh. 2.2 - Prob. 27CECh. 2.2 - Prob. 28CECh. 2.2 - Prob. 29CECh. 2.2 - Prob. 30CECh. 2.2 - Prob. 31CECh. 2.2 - C. Practical Applications Carpentry A carpenter is...Ch. 2.2 - C. Practical Applications Retail Merchandising...Ch. 2.3 - Prob. 1LCCh. 2.3 - Prob. 2LCCh. 2.3 - Prob. 1AECh. 2.3 - Prob. 2AECh. 2.3 - Prob. 3AECh. 2.3 - Prob. 4AECh. 2.3 - Prob. 5AECh. 2.3 - Prob. 6AECh. 2.3 - Prob. 7AECh. 2.3 - Prob. 8AECh. 2.3 - Prob. 9AECh. 2.3 - Prob. 10AECh. 2.3 - Prob. 11AECh. 2.3 - Prob. 12AECh. 2.3 - Prob. 13AECh. 2.3 - Prob. 14AECh. 2.3 - Prob. 15AECh. 2.3 - Prob. 16AECh. 2.3 - Prob. 17AECh. 2.3 - Prob. 18AECh. 2.3 - Prob. 19AECh. 2.3 - Prob. 20AECh. 2.3 - Prob. 21AECh. 2.3 - Prob. 22AECh. 2.3 - Prob. 23AECh. 2.3 - Divide and write the answer in lowest terms....Ch. 2.3 - Drafting How many feet are represented by a 4-in....Ch. 2.3 - Drafting If 14in. on a drawing represents 1 ft 0...Ch. 2.3 - Flooring and Carpeting How many boards 458 in....Ch. 2.3 - Construction How many supporting columns 8812in....Ch. 2.3 - Construction How many pieces of 12in. plywood are...Ch. 2.3 - Masonry The front side of a standard brick...Ch. 2.3 - Prob. 7BECh. 2.3 - Prob. 8BECh. 2.3 - Prob. 9BECh. 2.3 - Prob. 10BECh. 2.3 - Prob. 11BECh. 2.3 - Prob. 12BECh. 2.3 - Prob. 13BECh. 2.3 - Prob. 14BECh. 2.3 - Prob. 15BECh. 2.3 - Prob. 16BECh. 2.3 - Prob. 17BECh. 2.3 - Prob. 18BECh. 2.3 - Prob. 19BECh. 2.3 - Prob. 20BECh. 2.3 - Landscaping An agricultural supply yard sells...Ch. 2.4 - Write 18 as a product of its prime factors.Ch. 2.4 - What is the smallest number that 8 and 12 both...Ch. 2.4 - Prob. 1AECh. 2.4 - Add or subtract as shown. 512+1112Ch. 2.4 - Prob. 3AECh. 2.4 - Prob. 4AECh. 2.4 - Add or subtract as shown. 3414Ch. 2.4 - Prob. 6AECh. 2.4 - Prob. 7AECh. 2.4 - Add or subtract as shown. 512212Ch. 2.4 - Add or subtract as shown. 516+316+716Ch. 2.4 - Add or subtract as shown. 18+38+78Ch. 2.4 - Add or subtract as shown. 17838Ch. 2.4 - Add or subtract as shown. 39161516Ch. 2.4 - Add or subtract as shown. 14+12Ch. 2.4 - Add or subtract as shown. 716+38Ch. 2.4 - Add or subtract as shown. 58+112Ch. 2.4 - Add or subtract as shown. 512+316Ch. 2.4 - Add or subtract as shown. 1238Ch. 2.4 - Add or subtract as shown. 516332Ch. 2.4 - Add or subtract as shown. 151612Ch. 2.4 - Add or subtract as shown. 716132Ch. 2.4 - Add or subtract as shown. 35+18Ch. 2.4 - Add or subtract as shown. 23+45Ch. 2.4 - Add or subtract as shown. 7825Ch. 2.4 - Add or subtract as shown. 4914Ch. 2.4 - Add or subtract as shown. 12+1418Ch. 2.4 - Prob. 26AECh. 2.4 - Prob. 27AECh. 2.4 - Prob. 28AECh. 2.4 - Prob. 29AECh. 2.4 - Prob. 30AECh. 2.4 - Add or subtract as shown. 213+115Ch. 2.4 - Add or subtract as shown. 178+14Ch. 2.4 - Prob. 33AECh. 2.4 - Prob. 34AECh. 2.4 - Add or subtract as shown. 3152112Ch. 2.4 - Prob. 36AECh. 2.4 - Add or subtract as shown. 8278Ch. 2.4 - Prob. 2BECh. 2.4 - Prob. 3BECh. 2.4 - Add or subtract as shown. 12+13+14+15Ch. 2.4 - Prob. 5BECh. 2.4 - Prob. 6BECh. 2.4 - Prob. 7BECh. 2.4 - Prob. 8BECh. 2.4 - B. Add or subtract as shown. 2316lessthan478Ch. 2.4 - Prob. 10BECh. 2.4 - B. Add or subtract as shown. 235 less than 612Ch. 2.4 - Prob. 12BECh. 2.4 - C. Practical Applications Construction The...Ch. 2.4 - C. Practical Applications Carpentry A countertop...Ch. 2.4 - Prob. 3CECh. 2.4 - Prob. 4CECh. 2.4 - Prob. 5CECh. 2.4 - Prob. 6CECh. 2.4 - Prob. 7CECh. 2.4 - Prob. 8CECh. 2.4 - Prob. 9CECh. 2.4 - Prob. 10CECh. 2.4 - Prob. 11CECh. 2.4 - Prob. 12CECh. 2.4 - Prob. 13CECh. 2.4 - Prob. 14CECh. 2.4 - Prob. 15CECh. 2.4 - Prob. 16CECh. 2.4 - Prob. 17CECh. 2.4 - Prob. 18CECh. 2.4 - Prob. 19CECh. 2.4 - Prob. 20CECh. 2.4 - Prob. 21CECh. 2.4 - Prob. 22CECh. 2.4 - Prob. 23CECh. 2.4 - Prob. 24CECh. 2.4 - Prob. 25CECh. 2 - Work with fractions. (a) Write as a mixed number...Ch. 2 - Multiply and divide fractions. (a) 78532 (b) 41223...Ch. 2 - Add and subtract fractions. (a) 716+316 (b)...Ch. 2 - Solve practical problems involving fractions....Ch. 2 - A. Write as an improper fraction. 118Ch. 2 - A. Write as an improper fraction. 415Ch. 2 - A. Write as an improper fraction. 123Ch. 2 - A. Write as an improper fraction. 2316Ch. 2 - A. Write as an improper fraction. 3332Ch. 2 - Prob. 6APSCh. 2 - A. Write as an improper fraction. 158Ch. 2 - Prob. 8APSCh. 2 - A. Write as a mixed number. 104Ch. 2 - Prob. 10APSCh. 2 - A. Write as a mixed number. 253Ch. 2 - Prob. 12APSCh. 2 - Prob. 13APSCh. 2 - Prob. 14APSCh. 2 - A. Write as a mixed number. 354Ch. 2 - A. Write as a mixed number. 73Ch. 2 - A. Write in lowest terms. 632Ch. 2 - A. Write in lowest terms. 832Ch. 2 - A. Write in lowest terms. 1232Ch. 2 - Prob. 20APSCh. 2 - A. Write in lowest terms. 520Ch. 2 - Prob. 22APSCh. 2 - A. Write in lowest terms. 11620Ch. 2 - Prob. 24APSCh. 2 - A. Complete these. 34=?12Ch. 2 - Prob. 26APSCh. 2 - A. Complete these. 234=?16Ch. 2 - Prob. 28APSCh. 2 - A. Complete these. 523=?12Ch. 2 - Prob. 30APSCh. 2 - A. Complete these. 114=?12Ch. 2 - A. Complete these. 235=?10Ch. 2 - A. Circle the larger number. 716or215Ch. 2 - Prob. 34APSCh. 2 - A. Circle the larger number. 1316or78Ch. 2 - Prob. 36APSCh. 2 - A. Circle the larger number. 1332or35Ch. 2 - A. Circle the larger number. 210or316Ch. 2 - A. Circle the larger number. 1716 or 74Ch. 2 - Prob. 40APSCh. 2 - B. Multiply 12316Ch. 2 - Prob. 2BPSCh. 2 - B. Multiply 71643Ch. 2 - Prob. 4BPSCh. 2 - B. Multiply 11256Ch. 2 - B. Multiply 311615Ch. 2 - B. Multiply 316512Ch. 2 - Prob. 8BPSCh. 2 - B. Multiply 3410Ch. 2 - Prob. 10BPSCh. 2 - B. Multiply or divide as shown. 18112Ch. 2 - Prob. 12BPSCh. 2 - B. Multiply or divide as shown. 223438Ch. 2 - Prob. 14BPSCh. 2 - Multiply or divide as shown. 1214Ch. 2 - Prob. 16BPSCh. 2 - Multiply or divide as shown. 418Ch. 2 - Multiply or divide as shown. 834Ch. 2 - Multiply or divide as shown. 234Ch. 2 - Prob. 20BPSCh. 2 - Multiply or divide as shown. 3125Ch. 2 - Prob. 22BPSCh. 2 - Multiply or divide as shown. 234118Ch. 2 - Prob. 24BPSCh. 2 - C. Add or subtract as shown. 38+78Ch. 2 - Prob. 2CPSCh. 2 - C. Add or subtract as shown. 332+18Ch. 2 - Prob. 4CPSCh. 2 - C. Add or subtract as shown. 35+56Ch. 2 - Prob. 6CPSCh. 2 - Prob. 7CPSCh. 2 - Prob. 8CPSCh. 2 - Prob. 9CPSCh. 2 - Prob. 10CPSCh. 2 - C. Add or subtract as shown. 78310Ch. 2 - Prob. 12CPSCh. 2 - C. Add or subtract as shown. 218+114Ch. 2 - Prob. 14CPSCh. 2 - C. Add or subtract as shown. 6112Ch. 2 - Prob. 16CPSCh. 2 - C. Add or subtract as shown. 323178Ch. 2 - Prob. 18CPSCh. 2 - C. Add or subtract as shown. 12+13+15Ch. 2 - Prob. 20CPSCh. 2 - C. Add or subtract as shown. 312213Ch. 2 - C. Add or subtract as shown. 2351415Ch. 2 - C. Add or subtract as shown. 2135Ch. 2 - Prob. 24CPSCh. 2 - D. Practical Applications Welding In a welding...Ch. 2 - D. Practical Applications Machine Trades How many...Ch. 2 - D. Practical Applications Welding A piece of metal...Ch. 2 - D. Practical Applications Automotive Trades A...Ch. 2 - D. Practical Applications Machine Trades A shaft...Ch. 2 - D Practical Applications Machine Trades A bar...Ch. 2 - D. Practical Applications Manufacturing A cubic...Ch. 2 - D. Practical Applications Manufacturing Find the...Ch. 2 - D. Practical Applications Machine Trades What...Ch. 2 - D. Practical Applications Machine Trades The Ace...Ch. 2 - D. Practical Applications Carpentry What is the...Ch. 2 - D. Practical Applications Construction For the...Ch. 2 - D. Practical Applications Carpentry Find the...Ch. 2 - D. Practical Applications Masonry Find the height...Ch. 2 - D. Practical Applications Masonry If the wall in...Ch. 2 - D. Practical Applications Electrical Trades An...Ch. 2 - D. Practical Applications Printing An invitation...Ch. 2 - D. Practical Applications Printing As a rule of...Ch. 2 - D. Practical Applications Welding A 46-in. bar...Ch. 2 - D. Practical Applications Construction If an...Ch. 2 - D. Practical Applications Machine Trades If a...Ch. 2 - Prob. 22DPSCh. 2 - D. Practical Applications Landscaping A...Ch. 2 - D. Practical Applications Machine Trades A machine...Ch. 2 - D. Practical Applications Automotive Trades On a...Ch. 2 - D. Practical Applications Automotive Trades A...Ch. 2 - D. Practical Applications Allied Health One bottle...Ch. 2 - D. Practical Applications Construction The...Ch. 2 - Prob. 29DPSCh. 2 - Prob. 30DPSCh. 2 - Flooring and Carpeting In the United States carpet...Ch. 2 - D. Practical Applications Retail Merchandising In...Ch. 2 - D. Practical Applications Retail Merchandising The...Ch. 2 - D. Practical Applications Carpentry A carpenter...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, subject and related others by exploring similar questions and additional content below.Similar questions
- Use the method of undetermined coefficients to solve the given nonhomogeneous system. dx dt = 2x + 3y − 8 dy dt = −x − 2y + 6 X(t) =arrow_forwardAs discussed in Section 8.3, the Markowitz model uses the variance of the portfolio as the measure of risk. However, variance includes deviations both below and above the mean return. Semivariance includes only deviations below the mean and is considered by many to be a better measure of risk. (a) Develop a model that minimizes semivariance for the Hauck Financial data given in the file HauckData with a required return of 10%. Assume that the five planning scenarios in the Hauck Financial Services model are equally likely to occur. Hint: Modify model (8.10)–(8.19). Define a variable ds for each scenario and let ds ≥ R − Rs with ds ≥ 0. Then make the objective function: Min 1 5 5 s = 1 ds2. Let FS = proportion of portfolio invested in the foreign stock mutual fund IB = proportion of portfolio invested in the intermediate-term bond fund LG = proportion of portfolio invested in the large-cap growth fund LV = proportion of portfolio invested in the large-cap value fund…arrow_forwardCalculus lll May I please have the blank lines completed, and final statement defined as a result? Thank you for the support!arrow_forward
- For each month of the year, Taylor collected the average high temperatures in Jackson, Mississippi. He used the data to create the histogram shown. Which set of data did he use to create the histogram? A 55, 60, 64, 72, 73, 75, 77, 81, 83, 91, 91, 92\ 55,\ 60,\ 64,\ 72,\ 73,\ 75,\ 77,\ 81,\ 83,\ 91,\ 91,\ 92 55, 60, 64, 72, 73, 75, 77, 81, 83, 91, 91, 92 B 55, 57, 60, 65, 70, 71, 78, 79, 85, 86, 88, 91\ 55,\ 57,\ 60,\ 65,\ 70,\ 71,\ 78,\ 79,\ 85,\ 86,\ 88,\ 91 55, 57, 60, 65, 70, 71, 78, 79, 85, 86, 88, 91 C 55, 60, 63, 64, 65, 71, 83, 87, 88, 88, 89, 93\ 55,\ 60,\ 63,\ 64,\ 65,\ 71,\ 83,\ 87,\ 88,\ 88,\ 89,\ 93 55, 60, 63, 64, 65, 71, 83, 87, 88, 88, 89, 93 D 55, 58, 60, 66, 68, 75, 77, 82, 86, 89, 91, 91\ 55,\ 58,\ 60,\ 66,\ 68,\ 75,\ 77,\ 82,\ 86,\ 89,\ 91,\ 91 55, 58, 60, 66, 68, 75, 77, 82, 86, 89, 91, 91arrow_forwardIn this problem, we consider a Brownian motion (W+) t≥0. We consider a stock model (St)t>0 given (under the measure P) by d.St 0.03 St dt + 0.2 St dwt, with So 2. We assume that the interest rate is r = 0.06. The purpose of this problem is to price an option on this stock (which we name cubic put). This option is European-type, with maturity 3 months (i.e. T = 0.25 years), and payoff given by F = (8-5)+ (a) Write the Stochastic Differential Equation satisfied by (St) under the risk-neutral measure Q. (You don't need to prove it, simply give the answer.) (b) Give the price of a regular European put on (St) with maturity 3 months and strike K = 2. (c) Let X = S. Find the Stochastic Differential Equation satisfied by the process (Xt) under the measure Q. (d) Find an explicit expression for X₁ = S3 under measure Q. (e) Using the results above, find the price of the cubic put option mentioned above. (f) Is the price in (e) the same as in question (b)? (Explain why.)arrow_forwardProblem 4. Margrabe formula and the Greeks (20 pts) In the homework, we determined the Margrabe formula for the price of an option allowing you to swap an x-stock for a y-stock at time T. For stocks with initial values xo, yo, common volatility σ and correlation p, the formula was given by Fo=yo (d+)-x0Þ(d_), where In (±² Ꭲ d+ õ√T and σ = σ√√√2(1 - p). дго (a) We want to determine a "Greek" for ỡ on the option: find a formula for θα (b) Is дго θα positive or negative? (c) We consider a situation in which the correlation p between the two stocks increases: what can you say about the price Fo? (d) Assume that yo< xo and p = 1. What is the price of the option?arrow_forward
- The Course Name Real Analysis please Solve questions by Real Analysisarrow_forwardWe consider a 4-dimensional stock price model given (under P) by dẴ₁ = µ· Xt dt + йt · ΣdŴt where (W) is an n-dimensional Brownian motion, π = (0.02, 0.01, -0.02, 0.05), 0.2 0 0 0 0.3 0.4 0 0 Σ= -0.1 -4a За 0 0.2 0.4 -0.1 0.2) and a E R. We assume that ☑0 = (1, 1, 1, 1) and that the interest rate on the market is r = 0.02. (a) Give a condition on a that would make stock #3 be the one with largest volatility. (b) Find the diversification coefficient for this portfolio as a function of a. (c) Determine the maximum diversification coefficient d that you could reach by varying the value of a? 2arrow_forwardQuestion 1. Your manager asks you to explain why the Black-Scholes model may be inappro- priate for pricing options in practice. Give one reason that would substantiate this claim? Question 2. We consider stock #1 and stock #2 in the model of Problem 2. Your manager asks you to pick only one of them to invest in based on the model provided. Which one do you choose and why ? Question 3. Let (St) to be an asset modeled by the Black-Scholes SDE. Let Ft be the price at time t of a European put with maturity T and strike price K. Then, the discounted option price process (ert Ft) t20 is a martingale. True or False? (Explain your answer.) Question 4. You are considering pricing an American put option using a Black-Scholes model for the underlying stock. An explicit formula for the price doesn't exist. In just a few words (no more than 2 sentences), explain how you would proceed to price it. Question 5. We model a short rate with a Ho-Lee model drt = ln(1+t) dt +2dWt. Then the interest rate…arrow_forward
- In this problem, we consider a Brownian motion (W+) t≥0. We consider a stock model (St)t>0 given (under the measure P) by d.St 0.03 St dt + 0.2 St dwt, with So 2. We assume that the interest rate is r = 0.06. The purpose of this problem is to price an option on this stock (which we name cubic put). This option is European-type, with maturity 3 months (i.e. T = 0.25 years), and payoff given by F = (8-5)+ (a) Write the Stochastic Differential Equation satisfied by (St) under the risk-neutral measure Q. (You don't need to prove it, simply give the answer.) (b) Give the price of a regular European put on (St) with maturity 3 months and strike K = 2. (c) Let X = S. Find the Stochastic Differential Equation satisfied by the process (Xt) under the measure Q. (d) Find an explicit expression for X₁ = S3 under measure Q. (e) Using the results above, find the price of the cubic put option mentioned above. (f) Is the price in (e) the same as in question (b)? (Explain why.)arrow_forward3. Consider the polynomial equation 6-iz+7z² - iz³ +z = 0 for which the roots are 3i, -2i, -i, and i. (a) Verify the relations between this roots and the coefficients of the polynomial. (b) Find the annulus region in which the roots lie.arrow_forwardThe managing director of a consulting group has the accompanying monthly data on total overhead costs and professional labor hours to bill to clients. Complete parts a through c. Question content area bottom Part 1 a. Develop a simple linear regression model between billable hours and overhead costs. Overhead Costsequals=212495.2212495.2plus+left parenthesis 42.4857 right parenthesis42.485742.4857times×Billable Hours (Round the constant to one decimal place as needed. Round the coefficient to four decimal places as needed. Do not include the $ symbol in your answers.) Part 2 b. Interpret the coefficients of your regression model. Specifically, what does the fixed component of the model mean to the consulting firm? Interpret the fixed term, b 0b0, if appropriate. Choose the correct answer below. A. The value of b 0b0 is the predicted billable hours for an overhead cost of 0 dollars. B. It is not appropriate to interpret b 0b0, because its value…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Algebra: Structure And Method, Book 1AlgebraISBN:9780395977224Author:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. ColePublisher:McDougal Littell
Elementary AlgebraAlgebraISBN:9780998625713Author:Lynn Marecek, MaryAnne Anthony-SmithPublisher:OpenStax - Rice University
Holt Mcdougal Larson Pre-algebra: Student Edition...AlgebraISBN:9780547587776Author:HOLT MCDOUGALPublisher:HOLT MCDOUGAL
Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw Hill
Algebra: Structure And Method, Book 1
Algebra
ISBN:9780395977224
Author:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. Cole
Publisher:McDougal Littell
Elementary Algebra
Algebra
ISBN:9780998625713
Author:Lynn Marecek, MaryAnne Anthony-Smith
Publisher:OpenStax - Rice University
Holt Mcdougal Larson Pre-algebra: Student Edition...
Algebra
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
Glencoe Algebra 1, Student Edition, 9780079039897...
Algebra
ISBN:9780079039897
Author:Carter
Publisher:McGraw Hill
Introduction to Integers,Maths - What are integers - English; Author: Mathispower4u;https://www.youtube.com/watch?v=04pURxo-iu0;License: Standard YouTube License, CC-BY
Integers-Middle School Math; Author: MooMooMath and Science;https://www.youtube.com/watch?v=DGWcWtqM_yk;License: Standard YouTube License, CC-BY