Oil production. Using production and geological data, the management of an oil company estimates that oil will be pumped from a field producing at a rate given by R ( t ) = 100 t + 1 + 5 0 ≤ t ≤ 20 where R ( t ) is the rate of production (in thousands of barrels per year) t years after pumping begins. How many barrels of oil Q ( t ) will the field produce in the first t years if Q (0) = 0? How many barrels will be produced in the first 9 years?
Oil production. Using production and geological data, the management of an oil company estimates that oil will be pumped from a field producing at a rate given by R ( t ) = 100 t + 1 + 5 0 ≤ t ≤ 20 where R ( t ) is the rate of production (in thousands of barrels per year) t years after pumping begins. How many barrels of oil Q ( t ) will the field produce in the first t years if Q (0) = 0? How many barrels will be produced in the first 9 years?
Solution Summary: The author calculates the number of barrels of oil to fill the field in the first t years and 9 years.
Oil production. Using production and geological data, the management of an oil company estimates that oil will be pumped from a field producing at a rate given by
R
(
t
)
=
100
t
+
1
+
5
0
≤
t
≤
20
where R(t) is the rate of production (in thousands of barrels per year) t years after pumping begins. How many barrels of oil Q(t) will the field produce in the first t years if Q(0) = 0? How many barrels will be produced in the first 9 years?
A random variable X takes values 0 and 1 with probabilities q and p, respectively, with q+p=1. find the moment generating function of X and show that all the moments about the origin equal p. (Note- Please include as much detailed solution/steps in the solution to understand, Thank you!)
1 (Expected Shortfall)
Suppose the price of an asset Pt follows a normal random walk, i.e., Pt =
Po+r₁ + ... + rt with r₁, r2,... being IID N(μ, o²).
Po+r1+.
⚫ Suppose the VaR of rt is VaRq(rt) at level q, find the VaR of the price
in T days, i.e., VaRq(Pt – Pt–T).
-
• If ESq(rt) = A, find ES₁(Pt – Pt–T).
2 (Normal Distribution)
Let rt be a log return. Suppose that r₁, 2, ... are IID N(0.06, 0.47).
What is the distribution of rt (4) = rt + rt-1 + rt-2 + rt-3?
What is P(rt (4) < 2)?
What is the covariance between r2(2) = 1 + 12 and 13(2) = r² + 13?
• What is the conditional distribution of r₁(3) = rt + rt-1 + rt-2 given
rt-2 = 0.6?
Chapter 5 Solutions
Calculus for Business, Economics, Life Sciences, and Social Sciences (13th Edition)
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