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Mathematics All Around (6th Edition)
6th Edition
ISBN: 9780134434681
Author: Tom Pirnot
Publisher: PEARSON
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Textbook Question
Chapter 2.1, Problem 48E
Find n(A) for each of the following sets A.
{x: x is a vowel in the alphabet}
Expert Solution & Answer
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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
Twin Pair
7
8
9
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…
A horse trainer teaches horses to jump by using two methods of instruction. Horses being taught by method A have a lead horse that accompanies each jump. Horses being taught by method B have no lead horse. The table shows the number of training sessions required before each horse performed the jumps properly.
Method A
25
23
39
29
37
20
Method B
41
21
46
42
24
44
Method A
45
35
27
31
34
49
Method B
26
43
47
32
40
Use a rank-sum test with a5% level of significance to test the claim that there is no difference between the training sessions distributions. If the value of the sample test statistic R, the rank-sum, is 150, calculate the P-value. Round your answer to four decimal places.
A data processing company has a training program for new salespeople. After completing the training program, each trainee is ranked by his or her instructor. After a year of sales, the same class of trainees is again ranked by a company supervisor according to net value of the contracts they have acquired for the company. The results for a random sample of 11 salespeople trained in the last year follow, where x is rank in training class and y is rank in sales after 1 year. Lower ranks mean higher standing in class and higher net sales.
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2
3
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5
6
x rank
8
11
2
4
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3
y rank
7
10
1
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x rank
7
9
10
1
6
y rank
8
11
9
6
5
Using a 1% level of significance, test the claim that the relation between x and y is monotone (either increasing or decreasing). Verify that the Spearman rank correlation coefficient . This implies that the P-value lies between 0.002 and 0.01. State…
Chapter 2 Solutions
Mathematics All Around (6th Edition)
Ch. 2.1 - In Exercises 1-12, use set notation to list all...Ch. 2.1 - Prob. 2ECh. 2.1 - Prob. 3ECh. 2.1 - Prob. 4ECh. 2.1 - Prob. 5ECh. 2.1 - Prob. 6ECh. 2.1 - Prob. 7ECh. 2.1 - Prob. 8ECh. 2.1 - Prob. 9ECh. 2.1 - Prob. 10E
Ch. 2.1 - Prob. 11ECh. 2.1 - Prob. 12ECh. 2.1 - In Exercises 13-22, use an alternative method to...Ch. 2.1 - In Exercises 13-22, use an alternative method to...Ch. 2.1 - Prob. 15ECh. 2.1 - Prob. 16ECh. 2.1 - In Exercises 13-22, use an alternative method to...Ch. 2.1 - In Exercises 13-22, use an alternative method to...Ch. 2.1 - In Exercises 13-22, use an alternative method to...Ch. 2.1 - In Exercises 13-22, use an alternative method to...Ch. 2.1 - In Exercises 13-22, use an alternative method to...Ch. 2.1 - Prob. 22ECh. 2.1 - Prob. 23ECh. 2.1 - Prob. 24ECh. 2.1 - Prob. 25ECh. 2.1 - Prob. 26ECh. 2.1 - Prob. 27ECh. 2.1 - Prob. 28ECh. 2.1 - Prob. 29ECh. 2.1 - Prob. 30ECh. 2.1 - In Exercises 31-42, replace each # with either or...Ch. 2.1 - In Exercises 31-42, replace each # with either or...Ch. 2.1 - In Exercises 31-42, replace each # with either or...Ch. 2.1 - In Exercises 31-42, replace each # with either or...Ch. 2.1 - Prob. 35ECh. 2.1 - In Exercises 31-42, replace each # with either or...Ch. 2.1 - In Exercises 31-42, replace each # with either or...Ch. 2.1 - In Exercises 31-42, replace each # with either or...Ch. 2.1 - In Exercises 31-42, replace each # with either or...Ch. 2.1 - In Exercises 31-42, replace each # with either or...Ch. 2.1 - In Exercises 31-42, replace each # with either or...Ch. 2.1 - In Exercises 31-42, replace each # with either or...Ch. 2.1 - Find nA for each of the following sets A. 1, 3, 5,...Ch. 2.1 - Find nA for each of the following sets A. 3, 4, 5,...Ch. 2.1 - Find nA for each of the following sets A. x: x is...Ch. 2.1 - Find nA for each of the following sets A. x: x is...Ch. 2.1 - Prob. 47ECh. 2.1 - Find nA for each of the following sets A. x: x is...Ch. 2.1 - In Exercises 49-52, draw a bag diagram similar to...Ch. 2.1 - In Exercises 49-52, draw a bag diagram similar to...Ch. 2.1 - Prob. 51ECh. 2.1 - In Exercises 49-52, draw a bag diagram similar to...Ch. 2.1 - Prob. 53ECh. 2.1 - Prob. 54ECh. 2.1 - Prob. 55ECh. 2.1 - Describe each of the following sets as either...Ch. 2.1 - Prob. 57ECh. 2.1 - Prob. 58ECh. 2.1 - In Exercises 57-64, find an element of set A that...Ch. 2.1 - In Exercises 57-64, find an element of set A that...Ch. 2.1 - Prob. 61ECh. 2.1 - Prob. 62ECh. 2.1 - Prob. 63ECh. 2.1 - Prob. 64ECh. 2.1 - Applying What Youve Learned In Exercises 65-68,...Ch. 2.1 - Prob. 66ECh. 2.1 - Prob. 67ECh. 2.1 - Prob. 68ECh. 2.1 - Prob. 69ECh. 2.1 - Prob. 70ECh. 2.1 - Prob. 71ECh. 2.1 - Prob. 72ECh. 2.1 - Prob. 73ECh. 2.1 - Prob. 74ECh. 2.1 - Prob. 75ECh. 2.1 - Prob. 76ECh. 2.1 - Communicating Mathematics The Analogies Principle...Ch. 2.1 - Prob. 78ECh. 2.1 - Communicating Mathematics Give a careful...Ch. 2.1 - Communicating Mathematics Often good notation...Ch. 2.1 - Challenge Yourself Sets of well-known people. Let...Ch. 2.1 - Prob. 84ECh. 2.1 - We will define a paradox as a statement that...Ch. 2.1 - We will define a paradox as a statement that...Ch. 2.1 - Prob. 87ECh. 2.2 - In Exercises 1-8, decide whether each pair of sets...Ch. 2.2 - In Exercises 1-8, decide whether each pair of sets...Ch. 2.2 - Prob. 3ECh. 2.2 - Prob. 4ECh. 2.2 - Prob. 5ECh. 2.2 - Prob. 6ECh. 2.2 - In Exercises 1-8, decide whether each pair of sets...Ch. 2.2 - Prob. 8ECh. 2.2 - In Exercises 9-14, decide whether each statement...Ch. 2.2 - In Exercises 9-14, decide whether each statement...Ch. 2.2 - In Exercises 9-14, decide whether each statement...Ch. 2.2 - Prob. 12ECh. 2.2 - In Exercises 9-14, decide whether each statement...Ch. 2.2 - In Exercises 9-14, decide whether each statement...Ch. 2.2 - In Exercises 15-24, decide whether each pair of...Ch. 2.2 - In Exercises 15-24, decide whether each pair of...Ch. 2.2 - In Exercises 9-14, decide whether each statement...Ch. 2.2 - Prob. 18ECh. 2.2 - Prob. 19ECh. 2.2 - In Exercises 15-24, decide whether each pair of...Ch. 2.2 - In Exercises 15-24, decide whether each pair of...Ch. 2.2 - Prob. 22ECh. 2.2 - Prob. 23ECh. 2.2 - Prob. 24ECh. 2.2 - Prob. 25ECh. 2.2 - Prob. 26ECh. 2.2 - Prob. 27ECh. 2.2 - Prob. 28ECh. 2.2 - If set A has five elements, how many subsets does...Ch. 2.2 - If A has seven elements, how many subsets does A...Ch. 2.2 - Use the following table to answer Exercises 31-34....Ch. 2.2 - Use the following table to answer Exercises 31-34....Ch. 2.2 - Use the following table to answer Exercises 31-34....Ch. 2.2 - Prob. 34ECh. 2.2 - Prob. 35ECh. 2.2 - Prob. 36ECh. 2.2 - Prob. 37ECh. 2.2 - Prob. 38ECh. 2.2 - Dominos Pizza advertises that you can order your...Ch. 2.2 - If Dominos Pizza wants to advertise that there are...Ch. 2.2 - Burger King advertises that Have it your way. If...Ch. 2.2 - Burger King wishes to outdo Dominos Pizza in...Ch. 2.2 - The owners of Phoenix Flames football team won...Ch. 2.2 - Five internet companies are so that they can...Ch. 2.2 - Prob. 45ECh. 2.2 - Prob. 46ECh. 2.2 - Prob. 47ECh. 2.2 - Prob. 48ECh. 2.2 - Prob. 49ECh. 2.2 - Prob. 50ECh. 2.2 - Your friend Noah does not understand why his...Ch. 2.2 - Your friend Noah does not understand why his...Ch. 2.2 - Prob. 53ECh. 2.2 - Prob. 54ECh. 2.2 - When mathematicians find a solution to a problem,...Ch. 2.2 - Prob. 56ECh. 2.2 - Prob. 57ECh. 2.2 - Prob. 58ECh. 2.2 - In Exercises 59 -62, recall that in Section 1.1 we...Ch. 2.2 - In Exercises 59 -62, recall that in Section 1.1 we...Ch. 2.2 - Prob. 61ECh. 2.2 - Prob. 62ECh. 2.2 - Prob. 63ECh. 2.2 - Notice that the arrangement of numbers in each row...Ch. 2.2 - Assume the law firm of Dewey, Cheatum, and Howe...Ch. 2.2 - Prob. 66ECh. 2.2 - We mentioned that the subset notation, , and the...Ch. 2.2 - We mentioned that the subset notation, , and the...Ch. 2.2 - Prob. 69ECh. 2.2 - Discuss why it would be impossible with finite...Ch. 2.3 - Prob. 1ECh. 2.3 - Prob. 2ECh. 2.3 - Prob. 3ECh. 2.3 - Prob. 4ECh. 2.3 - Prob. 5ECh. 2.3 - Prob. 6ECh. 2.3 - Prob. 7ECh. 2.3 - Prob. 8ECh. 2.3 - Prob. 9ECh. 2.3 - Prob. 10ECh. 2.3 - In Exercises 1-12, let U=1,2,3,,10, A=1,3,5,7,9,...Ch. 2.3 - Prob. 12ECh. 2.3 - Prob. 13ECh. 2.3 - Prob. 14ECh. 2.3 - Prob. 15ECh. 2.3 - Prob. 16ECh. 2.3 - Prob. 17ECh. 2.3 - Prob. 18ECh. 2.3 - Consider the following large and small colored...Ch. 2.3 - Consider the following large and small colored...Ch. 2.3 - Consider the following large and small colored...Ch. 2.3 - Consider the following large and small colored...Ch. 2.3 - Prob. 23ECh. 2.3 - Prob. 24ECh. 2.3 - Prob. 25ECh. 2.3 - Prob. 26ECh. 2.3 - Prob. 27ECh. 2.3 - Prob. 28ECh. 2.3 - Prob. 29ECh. 2.3 - Prob. 30ECh. 2.3 - Prob. 31ECh. 2.3 - Prob. 32ECh. 2.3 - Prob. 33ECh. 2.3 - Prob. 34ECh. 2.3 - Prob. 35ECh. 2.3 - Prob. 36ECh. 2.3 - Prob. 37ECh. 2.3 - Prob. 38ECh. 2.3 - Prob. 39ECh. 2.3 - Prob. 40ECh. 2.3 - We have indicated the number of elements in each...Ch. 2.3 - Prob. 42ECh. 2.3 - We have indicated the number of elements in each...Ch. 2.3 - Prob. 44ECh. 2.3 - We have indicated the number of elements in each...Ch. 2.3 - We have indicated the number of elements in each...Ch. 2.3 - Prob. 47ECh. 2.3 - We have indicated the number of elements in each...Ch. 2.3 - Appling What youve learned In the following table,...Ch. 2.3 - Appling What youve learned In the following table,...Ch. 2.3 - Applying What Youve Learned In the following...Ch. 2.3 - Applying What Youve Learned In the following...Ch. 2.3 - Applying What Youve Learned In the following...Ch. 2.3 - Prob. 54ECh. 2.3 - Applying What Youve Learned In the following...Ch. 2.3 - Applying What Youve Learned In the following...Ch. 2.3 - Prob. 57ECh. 2.3 - Prob. 58ECh. 2.3 - Prob. 59ECh. 2.3 - Prob. 60ECh. 2.3 - Prob. 61ECh. 2.3 - Prob. 62ECh. 2.3 - Prob. 63ECh. 2.3 - Prob. 64ECh. 2.3 - As of January 2016, Box Office Mojo reported that,...Ch. 2.3 - As of January 2016, Box Office Mojo reported that,...Ch. 2.3 - As of January 2016, Box Office Mojo reported that,...Ch. 2.3 - As of January 2016, Box Office Mojo reported that,...Ch. 2.3 - As of January 2016, Box Office Mojo reported that,...Ch. 2.3 - As of January 2016, Box Office Mojo reported that,...Ch. 2.3 - Prob. 71ECh. 2.3 - Prob. 72ECh. 2.3 - Communicating Mathematics Students often mistake...Ch. 2.3 - Communicating Mathematics Give some examples in...Ch. 2.3 - Prob. 77ECh. 2.3 - Prob. 78ECh. 2.3 - Challenge Yourself In Exercise 77 80, decide...Ch. 2.3 - Challenge Yourself In Exercise 77 80, decide...Ch. 2.3 - In Exercise 81 84, assume AB. Express each set in...Ch. 2.3 - Prob. 82ECh. 2.3 - In Exercise 81 84, assume AB. Express each set in...Ch. 2.3 - In Exercise 81 84, Assume AB. Express each set in...Ch. 2.3 - Prob. 85ECh. 2.3 - Example 8 shows that in set theory, intersection...Ch. 2.4 - Sharpening Your Skills In Exercises 14, determine...Ch. 2.4 - Sharpening Your Skills In Exercises 14, determine...Ch. 2.4 - Sharpening Your Skills In Exercises 14, determine...Ch. 2.4 - Sharpening Your Skills In Exercises 14, determine...Ch. 2.4 - Sharpening Your Skills In Exercises 5-10, describe...Ch. 2.4 - Prob. 6ECh. 2.4 - Sharpening Your Skills In Exercises 5-10, describe...Ch. 2.4 - Sharpening Your Skills In Exercises 5-10, describe...Ch. 2.4 - Prob. 9ECh. 2.4 - Prob. 10ECh. 2.4 - Prob. 11ECh. 2.4 - Sharpening Your Skills The numbers in the regions...Ch. 2.4 - Prob. 13ECh. 2.4 - Sharpening Your Skills The numbers in the regions...Ch. 2.4 - Prob. 15ECh. 2.4 - Sharpening Your Skills The numbers in the regions...Ch. 2.4 - Sharpening Your Skills The numbers in the regions...Ch. 2.4 - Sharpening Your Skills The numbers in the regions...Ch. 2.4 - Sharpening Your Skills The numbers in the regions...Ch. 2.4 - Sharpening Your Skills The numbers in the regions...Ch. 2.4 - Sharpening Your Skills In Exercises 21 26, find,...Ch. 2.4 - Sharpening Your Skills In Exercises 21 26, find,...Ch. 2.4 - Sharpening Your Skills In Exercises 21 26, find,...Ch. 2.4 - Sharpening Your Skills In Exercises 21 26, find,...Ch. 2.4 - Sharpening Your Skills In Exercises 21 26, find,...Ch. 2.4 - Sharpening Your Skills In Exercises 21 26, find,...Ch. 2.4 - Applying What Youve Learned Automobile accidents....Ch. 2.4 - Applying What Youve Learned Concerns about social...Ch. 2.4 - Applying What Youve Learned There are 82 people...Ch. 2.4 - Applying What Youve Learned There are 95 students...Ch. 2.4 - Applying What Youve Learned Survey of vacationers....Ch. 2.4 - Applying What Youve Learned Search engine survey....Ch. 2.4 - Applying What Youve Learned Fitness survey....Ch. 2.4 - Applying What Youve Learned Academic services...Ch. 2.4 - Applying What Youve Learned 35. World issues...Ch. 2.4 - Prob. 36ECh. 2.4 - Prob. 37ECh. 2.4 - Applying What Youve Learned 38. Online music...Ch. 2.4 - Prob. 39ECh. 2.4 - Prob. 40ECh. 2.4 - Prob. 41ECh. 2.4 - Prob. 42ECh. 2.4 - Prob. 43ECh. 2.4 - Prob. 44ECh. 2.4 - Prob. 45ECh. 2.4 - Prob. 46ECh. 2.4 - Prob. 47ECh. 2.4 - Prob. 48ECh. 2.4 - A person can safely receive a transfusion from...Ch. 2.4 - Prob. 50ECh. 2.4 - Prob. 51ECh. 2.4 - Communicating Mathematics In Figure 2.13a,...Ch. 2.4 - Math in Your: Life: Between the Numbers Validity...Ch. 2.4 - Math in Your Life: Between the Numbers Validity of...Ch. 2.4 - Challenge Yourself As you saw in Section 2.3, a...Ch. 2.4 - Prob. 56ECh. 2.4 - Prob. 57ECh. 2.4 - Challenge Yourself Thinking along the lines of...Ch. 2.4 - Prob. 59ECh. 2.4 - Prob. 60ECh. 2.5 - Prob. 1ECh. 2.5 - Prob. 2ECh. 2.5 - Prob. 3ECh. 2.5 - Prob. 4ECh. 2.5 - Prob. 5ECh. 2.5 - Sharpening Your Skills In Exercises 1-8, show that...Ch. 2.5 - Prob. 7ECh. 2.5 - Sharpening Your Skills In Exercises 1-8, show that...Ch. 2.5 - In Exercises 9-12, we give an expression...Ch. 2.5 - In Exercises 9-12, we give an expression...Ch. 2.5 - In Exercises 9-12, we give an expression...Ch. 2.5 - In Exercises 9-12, we give an expression...Ch. 2.5 - Prob. 13ECh. 2.5 - Prob. 14ECh. 2.5 - Prob. 15ECh. 2.5 - Prob. 16ECh. 2.5 - Prob. 17ECh. 2.5 - Prob. 18ECh. 2.5 - Prob. 19ECh. 2.5 - Prob. 20ECh. 2.5 - Prob. 21ECh. 2.5 - Prob. 22ECh. 2.5 - In Example 3, we showed you how to match the...Ch. 2.5 - In Example 3, we showed you how to match the...Ch. 2.5 - In Example 3, we showed you how to match the...Ch. 2.5 - In Example 3, we showed you how to match the...Ch. 2.5 - Communicating Mathematics In Example 3, what did...Ch. 2.5 - Communicating Mathematics What was the essence of...Ch. 2.5 - Communicating Mathematics How would you convince...Ch. 2.5 - Communicating Mathematics How would you convince...Ch. 2.5 - Communicating Mathematics In Example 3, why did we...Ch. 2.5 - In constructing the number x in Example 4, how...Ch. 2.5 - Prob. 33ECh. 2.5 - Prob. 34ECh. 2.5 - The arithmetic of infinite cardinal numbers has...Ch. 2.5 - Prob. 36ECh. 2.5 - Imagine that we bend a line segment representing...Ch. 2.5 - Use an argument similar to that of Exercise 37 to...Ch. 2.CR - Prob. 1CRCh. 2.CR - Explain whyCh. 2.CR - Make up a bag diagram to illustrate the set 3, ,1,...Ch. 2.CR - Find the cardinal number of each of these sets....Ch. 2.CR - Prob. 5CRCh. 2.CR - Decide whether each statement is true and false....Ch. 2.CR - Prob. 7CRCh. 2.CR - Prob. 8CRCh. 2.CR - Prob. 9CRCh. 2.CR - Using the same sets as in Exercise 9, find the...Ch. 2.CR - Prob. 11CRCh. 2.CR - Use DeMorgans laws to represent (AB) in a...Ch. 2.CR - a. List three algebraic properties satisfied by...Ch. 2.CR - State the Inclusion-Exclusion Principle. What is a...Ch. 2.CR - Use the following information to answer the given...Ch. 2.CR - .A survey was taken of college freshman regarding...Ch. 2.CR - Prob. 17CRCh. 2.CR - What is the definition of an infinite set?Ch. 2.CR - Show that the set of natural numbers is infinite.Ch. 2.CR - In matching the rational numbers with the natural...Ch. 2.CR - In creating the number x in Example 4 in Section...Ch. 2.CT - Chapter Test Use an alternative method to express...Ch. 2.CT - Prob. 2CTCh. 2.CT - Prob. 3CTCh. 2.CT - Let U={1,2,3,...,10} and let A={1,2,5,6,9},...Ch. 2.CT - Explain why {}:Ch. 2.CT - Prob. 6CTCh. 2.CT - Prob. 7CTCh. 2.CT - Make up a bag diagram to illustrate the set...Ch. 2.CT - Prob. 9CTCh. 2.CT - Prob. 10CTCh. 2.CT - Prob. 11CTCh. 2.CT - Chapter Test Use the following information to...Ch. 2.CT - Chapter Test A survey was taken of drivers...Ch. 2.CT - Prob. 14CTCh. 2.CT - Prob. 15CTCh. 2.CT - Chapter Test In matching the rational numbers with...Ch. 2.CT - Chapter Test 17.In creating the number x in...Ch. 2.CT - Using the blood type classifications that we...
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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. 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_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_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_forward
- 3. 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_forward2. 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_forward
- Please 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_forwardThis question builds on an earlier problem. The randomized numbers may have changed, but have your work for the previous problem available to help with this one. A 4-centimeter rod is attached at one end to a point A rotating counterclockwise on a wheel of radius 2 cm. The other end B is free to move back and forth along a horizontal bar that goes through the center of the wheel. At time t=0 the rod is situated as in the diagram at the left below. The wheel rotates counterclockwise at 1.5 rev/sec. At some point, the rod will be tangent to the circle as shown in the third picture. A B A B at some instant, the piston will be tangent to the circle (a) Express the x and y coordinates of point A as functions of t: x= 2 cos(3πt) and y= 2 sin(3t) (b) Write a formula for the slope of the tangent line to the circle at the point A at time t seconds: -cot(3πt) sin(3лt) (c) Express the x-coordinate of the right end of the rod at point B as a function of t: 2 cos(3πt) +411- 4 -2 sin (3лt) (d)…arrow_forward5. [-/1 Points] DETAILS MY NOTES SESSCALCET2 6.5.AE.003. y y= ex² 0 Video Example x EXAMPLE 3 (a) Use the Midpoint Rule with n = 10 to approximate the integral कर L'ex² dx. (b) Give an upper bound for the error involved in this approximation. SOLUTION 8+2 1 L'ex² d (a) Since a = 0, b = 1, and n = 10, the Midpoint Rule gives the following. (Round your answer to six decimal places.) dx Ax[f(0.05) + f(0.15) + ... + f(0.85) + f(0.95)] 0.1 [0.0025 +0.0225 + + e0.0625 + 0.1225 e0.3025 + e0.4225 + e0.2025 + + e0.5625 €0.7225 +0.9025] The figure illustrates this approximation. (b) Since f(x) = ex², we have f'(x) = 0 ≤ f'(x) = < 6e. ASK YOUR TEACHER and f'(x) = Also, since 0 ≤ x ≤ 1 we have x² ≤ and so Taking K = 6e, a = 0, b = 1, and n = 10 in the error estimate, we see that an upper bound for the error is as follows. (Round your final answer to five decimal places.) 6e(1)3 e 24( = ≈arrow_forward
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