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Finite Mathematics for the Managerial, Life, and Social Sciences
12th Edition
ISBN: 9781337405782
Author: Soo T. Tan
Publisher: Cengage Learning
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Chapter 6.1, Problem 59E
To determine
To Illustrate:
The statement
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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.
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.
This 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)…
Chapter 6 Solutions
Finite Mathematics for the Managerial, Life, and Social Sciences
Ch. 6.1 - Prob. 1CQCh. 6.1 - Prob. 2CQCh. 6.1 - Prob. 3CQCh. 6.1 - Prob. 1ECh. 6.1 - Prob. 2ECh. 6.1 - Prob. 3ECh. 6.1 - Prob. 4ECh. 6.1 - Prob. 5ECh. 6.1 - Prob. 6ECh. 6.1 - Prob. 7E
Ch. 6.1 - Prob. 8ECh. 6.1 - In Exercises 9-14, state whether the statements...Ch. 6.1 - Prob. 10ECh. 6.1 - Prob. 11ECh. 6.1 - Prob. 12ECh. 6.1 - Prob. 13ECh. 6.1 - Prob. 14ECh. 6.1 - Prob. 15ECh. 6.1 - Prob. 16ECh. 6.1 - Prob. 17ECh. 6.1 - Prob. 18ECh. 6.1 - Prob. 19ECh. 6.1 - Prob. 20ECh. 6.1 - Prob. 21ECh. 6.1 - Prob. 22ECh. 6.1 - Prob. 23ECh. 6.1 - Prob. 24ECh. 6.1 - Prob. 25ECh. 6.1 - Let U denotes the set of all students who applied...Ch. 6.1 - In Exercise 27-28, write an expression describing...Ch. 6.1 - In Exercise 27-28, write an expression describing...Ch. 6.1 - Prob. 29ECh. 6.1 - Prob. 30ECh. 6.1 - Prob. 31ECh. 6.1 - Prob. 32ECh. 6.1 - Prob. 33ECh. 6.1 - Prob. 34ECh. 6.1 - Prob. 35ECh. 6.1 - Prob. 36ECh. 6.1 - In Exercise 35-38, let U={1,2,3,4,5,6,7,8,9,10},...Ch. 6.1 - Prob. 38ECh. 6.1 - Prob. 39ECh. 6.1 - Prob. 40ECh. 6.1 - Prob. 41ECh. 6.1 - Prob. 42ECh. 6.1 - Prob. 43ECh. 6.1 - Prob. 44ECh. 6.1 - Prob. 45ECh. 6.1 - Prob. 46ECh. 6.1 - Prob. 47ECh. 6.1 - Prob. 48ECh. 6.1 - Prob. 49ECh. 6.1 - Prob. 50ECh. 6.1 - Prob. 51ECh. 6.1 - Prob. 52ECh. 6.1 - BEST U.S. CITY FOR ITALIAN RESTAURANTS In a reader...Ch. 6.1 - INVENTORY Loss The biggest cause of inventory...Ch. 6.1 - Prob. 55ECh. 6.1 - Prob. 56ECh. 6.1 - Prob. 57ECh. 6.1 - Prob. 58ECh. 6.1 - Prob. 59ECh. 6.1 - Prob. 60ECh. 6.1 - Prob. 61ECh. 6.1 - Prob. 62ECh. 6.1 - Prob. 63ECh. 6.1 - Prob. 64ECh. 6.1 - Prob. 65ECh. 6.1 - Prob. 66ECh. 6.1 - Prob. 67ECh. 6.1 - Prob. 68ECh. 6.1 - Prob. 69ECh. 6.1 - Prob. 70ECh. 6.1 - Prob. 71ECh. 6.1 - Prob. 72ECh. 6.1 - Prob. 73ECh. 6.1 - Prob. 74ECh. 6.1 - In Exercise 71-80, determine whether the statement...Ch. 6.1 - Prob. 76ECh. 6.1 - Prob. 77ECh. 6.1 - Prob. 78ECh. 6.1 - Prob. 79ECh. 6.1 - Prob. 80ECh. 6.2 - Prob. 1CQCh. 6.2 - Prob. 2CQCh. 6.2 - Prob. 1ECh. 6.2 - Prob. 2ECh. 6.2 - Prob. 3ECh. 6.2 - Prob. 4ECh. 6.2 - Prob. 5ECh. 6.2 - Prob. 6ECh. 6.2 - If n(A)=15, n(AB)=5 and n(AB)=30, then what is...Ch. 6.2 - Prob. 8ECh. 6.2 - Prob. 9ECh. 6.2 - Prob. 10ECh. 6.2 - Prob. 11ECh. 6.2 - Prob. 12ECh. 6.2 - Prob. 13ECh. 6.2 - Prob. 14ECh. 6.2 - Prob. 15ECh. 6.2 - Prob. 16ECh. 6.2 - Prob. 17ECh. 6.2 - NEWSPAPER SUBSCRIBERS A survey of 1000 subscribers...Ch. 6.2 - JAIL INMATES On a certain day, the Wilton County...Ch. 6.2 - Of 100 clock radios with digital tuners and/or CD...Ch. 6.2 - COMPTER OWNERSHIP A survey of 100 college students...Ch. 6.2 - Prob. 22ECh. 6.2 - BRAND PREFERENCES OF CONSUMERS In a survey of 120...Ch. 6.2 - SPORTS CLUB SURVEY In a survey of 200 members of a...Ch. 6.2 - INVESTORS' USAGE OF BROKERS In a poll conducted...Ch. 6.2 - COMMUTER TRENDS Of 50 employees of a store located...Ch. 6.2 - CONSUMER SURVEY OF DESKTOP AND TABLET COMPUTER...Ch. 6.2 - CONSUMER SURVEY OF HDTV AND MP3 PLAYER OWNERS In a...Ch. 6.2 - Prob. 29ECh. 6.2 - Prob. 30ECh. 6.2 - Prob. 31ECh. 6.2 - In Exercises 3134, use the given information to...Ch. 6.2 - In Exercises 3134, use the given information to...Ch. 6.2 - Prob. 34ECh. 6.2 - Prob. 35ECh. 6.2 - Prob. 36ECh. 6.2 - Prob. 37ECh. 6.2 - Prob. 38ECh. 6.2 - Prob. 39ECh. 6.2 - BRAND SWITCHING AMONG FEMALE COLLEGE STUDENTSIn a...Ch. 6.2 - Prob. 41ECh. 6.2 - FEDERAL BUDGET ALLOCATION According to the Office...Ch. 6.2 - SURVEY OF LEADING ECONOMISTS A survey of the...Ch. 6.2 - STUDENT DROPOUT RATE Data released by the...Ch. 6.2 - STUDENT MAGAZINE PREFERENCES A survey of 100...Ch. 6.2 - SAT SCORES Results of a Department of Education...Ch. 6.2 - BRAND PREFERENCES OF CONSUMERS The 120 consumers...Ch. 6.2 - CAFETERIA STUDENT USAGE To help plan the number of...Ch. 6.2 - 401k INVESTMENTS In a survey of 200 employees of a...Ch. 6.2 - NEWSPAPER PREFERENCES OF INVESTORS In a survey of...Ch. 6.2 - Prob. 51ECh. 6.2 - Prob. 52ECh. 6.2 - Prob. 53ECh. 6.2 - Prob. 54ECh. 6.2 - Prob. 55ECh. 6.2 - Prob. 56ECh. 6.3 - Explain the multiplication principle, and...Ch. 6.3 - Prob. 2CQCh. 6.3 - RENTAL RATES Lynbrook West, an apartment complex...Ch. 6.3 - COMMUTER PASSES Five different types of monthly...Ch. 6.3 - BLACKJACK In the game of blackjack, a 2-card hand...Ch. 6.3 - Prob. 4ECh. 6.3 - WARDROBE SELECTION A female executive selecting...Ch. 6.3 - COMMUTER OPTIONS Four commuter trains and three...Ch. 6.3 - PSYCHOLOGY EXPERIMENTS A psychologist has...Ch. 6.3 - Prob. 8ECh. 6.3 - HEALTH-CARE PLAN OPTIONS A new state employee is...Ch. 6.3 - CODE WORDS How many three-letter code words can be...Ch. 6.3 - Prob. 11ECh. 6.3 - MENU CHOICES The New Shanghai Restaurant offers a...Ch. 6.3 - CHOOSING A PIN Janice needs to make up a personal...Ch. 6.3 - MENU CHOICES Marias Trattoria offers mushrooms,...Ch. 6.3 - Prob. 15ECh. 6.3 - CHOOSING A DRIVER Five friends are leaving a bar...Ch. 6.3 - WRITTEN DRIVERs TEST The California drivers...Ch. 6.3 - BUILDING A PICKUP TRUCK The 2017 Sierra 1500...Ch. 6.3 - Prob. 19ECh. 6.3 - Prob. 20ECh. 6.3 - Prob. 21ECh. 6.3 - SERIAL NUMBERS Computers manufactured by a certain...Ch. 6.3 - COMPUTER DATING A computer dating service uses the...Ch. 6.3 - AUTOMOBILE COLOR AND TRIM CHOICES The 2017 BMW...Ch. 6.3 - AUTOMOBILE OPTIONS The 2017 Toyota Camry comes...Ch. 6.3 - TELEVISION-VIEWING POLLS An opinion poll is to be...Ch. 6.3 - LICENSE PLATE NUMBERS Over the years, the state of...Ch. 6.3 - POLITICAL POLLS An opinion poll was conducted by...Ch. 6.3 - LICENSE PLATE NUMBERS In recent years, the state...Ch. 6.3 - Exams An exam consists of ten true-or-false...Ch. 6.3 - WARRANTY NUMBERS A warranty identification number...Ch. 6.3 - CHOOSING A PASSWORD A password is to be made from...Ch. 6.3 - LOTTERIES In a state lottery, there are 15...Ch. 6.3 - COMBINATION LOCKS A rolling combination four-digit...Ch. 6.3 - COMBINATION LOCKS Lugano Leather Company makes an...Ch. 6.3 - TELEPHONE NUMBERS a. How many seven-digit...Ch. 6.3 - SLOT MACHINES A "lucky dollar" is one of the nine...Ch. 6.3 - STAFFING Student Painters, which specializes in...Ch. 6.3 - Prob. 39ECh. 6.3 - In Exercises 39 and 40, determine whether the...Ch. 6.4 - a. What is a permutation of a set of distinct...Ch. 6.4 - Prob. 2CQCh. 6.4 - a. How many combinations are there of a set of n...Ch. 6.4 - Prob. 1ECh. 6.4 - Prob. 2ECh. 6.4 - Prob. 3ECh. 6.4 - Prob. 4ECh. 6.4 - Prob. 5ECh. 6.4 - In Exercises 1-22, evaluate the given expression....Ch. 6.4 - Prob. 7ECh. 6.4 - Prob. 8ECh. 6.4 - Prob. 9ECh. 6.4 - In Exercises 1-22, evaluate the given expression....Ch. 6.4 - In Exercises 1-22, evaluate the given expression....Ch. 6.4 - Prob. 12ECh. 6.4 - Prob. 13ECh. 6.4 - Prob. 14ECh. 6.4 - Prob. 15ECh. 6.4 - In Exercises 1-22, evaluate the given expression....Ch. 6.4 - Prob. 17ECh. 6.4 - Prob. 18ECh. 6.4 - Prob. 19ECh. 6.4 - Prob. 20ECh. 6.4 - In Exercise 1-22, evaluate the given expression....Ch. 6.4 - Prob. 22ECh. 6.4 - In Exercises 23-30, classify each problem...Ch. 6.4 - In Exercises 23-30, classify each problem...Ch. 6.4 - Prob. 25ECh. 6.4 - Prob. 26ECh. 6.4 - Prob. 27ECh. 6.4 - Prob. 28ECh. 6.4 - Prob. 29ECh. 6.4 - In Exercises 23-30, classify each problem...Ch. 6.4 - Prob. 31ECh. 6.4 - How many three-letter permutations can be formed...Ch. 6.4 - In how many ways can four students be seated in a...Ch. 6.4 - In how many ways can five people line up at a...Ch. 6.4 - Prob. 35ECh. 6.4 - In how many ways can the names of six candidates...Ch. 6.4 - In how many ways can a member of a hiring...Ch. 6.4 - In how many ways can an investor select four...Ch. 6.4 - Find the number of distinguishable permutations...Ch. 6.4 - Find the number of distinguishable permutations...Ch. 6.4 - In how many ways can the letters of the website...Ch. 6.4 - In how many ways can five people boarding a bus be...Ch. 6.4 - Prob. 43ECh. 6.4 - How many different signals can be made by hoisting...Ch. 6.4 - SUPERMARKET SITE SELECTION In how many ways can a...Ch. 6.4 - SELECTING A READING LIST A student is given a...Ch. 6.4 - QUALITY CONTROL In how many ways can a...Ch. 6.4 - STUDY GROUP ASSIGNMENTS A group of five students...Ch. 6.4 - TELEVISION PROGRAMMING In how many ways can a...Ch. 6.4 - WAITING LINES Seven people arrive at the ticket...Ch. 6.4 - SELECTING A SPECIAL OCCASION CAKE Fosselmans Ice...Ch. 6.4 - WEDDING CATERING L.A. Wedding Caterers offers a...Ch. 6.4 - MENU CHOICES Buca di Beppo, an Italian restaurant,...Ch. 6.4 - MANAGEMENT DECISIONS Weaver and Kline, a stock...Ch. 6.4 - CAR POOLS A company car that has a seating...Ch. 6.4 - Prob. 56ECh. 6.4 - TRAVEL WARDROBE Kaylee is planning a wardrobe for...Ch. 6.4 - Criminology The town of Carson employs 15 police...Ch. 6.4 - Book Exhibitions At a college library exhibition...Ch. 6.4 - CONCERT SEATING In how many ways can four married...Ch. 6.4 - Prob. 61ECh. 6.4 - Prob. 62ECh. 6.4 - NEWSPAPER ADS Four items from five different...Ch. 6.4 - MANAGEMENT DECISIONS C ** J Realty has received 12...Ch. 6.4 - SELECTING A BASEBALL TEAM A Little League baseball...Ch. 6.4 - TENNIS MATCH In the mens tennis tournament at...Ch. 6.4 - Prob. 67ECh. 6.4 - JURY SELECTION In how many different ways can a...Ch. 6.4 - Prob. 69ECh. 6.4 - EXAMS A student taking an examination is required...Ch. 6.4 - TEACHING ASSISTANTSHIPS Twelve graduate students...Ch. 6.4 - SENATE COMMITTIES In how many ways can a...Ch. 6.4 - CONTRACT BIDDING UBS Television Company is...Ch. 6.4 - PERSONNEL SELECTION JCL. Computers has five...Ch. 6.4 - Prob. 75ECh. 6.4 - WRITTEN DRIVERS TEST A state Motor Vehicle...Ch. 6.4 - Prob. 77ECh. 6.4 - Prob. 78ECh. 6.4 - Prob. 79ECh. 6.4 - Prob. 80ECh. 6.4 - Prob. 81ECh. 6.4 - Prob. 82ECh. 6.4 - Prob. 83ECh. 6.4 - WORLD SERIES In the World Series, one National...Ch. 6.4 - VOTING QUORUMS A quorum minimum of 6 voting...Ch. 6.4 - Prob. 86ECh. 6.4 - Prob. 87ECh. 6.4 - Prob. 88ECh. 6.4 - Prob. 91ECh. 6.4 - Prob. 92ECh. 6.4 - Prob. 93ECh. 6.4 - Prob. 94ECh. 6.4 - Prob. 1TECh. 6.4 - Prob. 2TECh. 6.4 - Prob. 3TECh. 6.4 - Prob. 4TECh. 6.4 - Prob. 5TECh. 6.4 - Prob. 6TECh. 6.4 - In Exercises 110, evaluate the expression. C(52,7)Ch. 6.4 - Prob. 8TECh. 6.4 - In Exercises 110, evaluate the expression....Ch. 6.4 - In Exercises 110, evaluate the expression....Ch. 6.4 - Prob. 11TECh. 6.4 - Prob. 12TECh. 6.CRQ - Fill in the blanks. A well-defined collection of...Ch. 6.CRQ - Prob. 2CRQCh. 6.CRQ - Prob. 3CRQCh. 6.CRQ - Prob. 4CRQCh. 6.CRQ - Prob. 5CRQCh. 6.CRQ - Prob. 6CRQCh. 6.CRQ - Prob. 7CRQCh. 6.CRQ - Prob. 8CRQCh. 6.CRE - Prob. 1CRECh. 6.CRE - Prob. 2CRECh. 6.CRE - Prob. 3CRECh. 6.CRE - Prob. 4CRECh. 6.CRE - Prob. 5CRECh. 6.CRE - Prob. 6CRECh. 6.CRE - Prob. 7CRECh. 6.CRE - Prob. 8CRECh. 6.CRE - Prob. 9CRECh. 6.CRE - Prob. 10CRECh. 6.CRE - Prob. 11CRECh. 6.CRE - Prob. 12CRECh. 6.CRE - Prob. 13CRECh. 6.CRE - Prob. 14CRECh. 6.CRE - Prob. 15CRECh. 6.CRE - Prob. 16CRECh. 6.CRE - Prob. 17CRECh. 6.CRE - Prob. 18CRECh. 6.CRE - Prob. 19CRECh. 6.CRE - Prob. 20CRECh. 6.CRE - Prob. 21CRECh. 6.CRE - Prob. 22CRECh. 6.CRE - Prob. 23CRECh. 6.CRE - Prob. 24CRECh. 6.CRE - Prob. 25CRECh. 6.CRE - Let A and B be subsets of a universal set U and...Ch. 6.CRE - Prob. 27CRECh. 6.CRE - Prob. 28CRECh. 6.CRE - Prob. 29CRECh. 6.CRE - Prob. 30CRECh. 6.CRE - CREDIT CARD COMPARISONS A comparison of five major...Ch. 6.CRE - STUDENT SURVEYS The Department of Foreign...Ch. 6.CRE - In how many ways can six different DVDs be...Ch. 6.CRE - Prob. 34CRECh. 6.CRE - In how many ways can six different books, four of...Ch. 6.CRE - Prob. 36CRECh. 6.CRE - Find the number of distinguishable permutations...Ch. 6.CRE - Prob. 38CRECh. 6.CRE - AUTOMOBILE SELECTION An automobile manufacturer...Ch. 6.CRE - MENU SELECTIONS Two soups, five entres, and three...Ch. 6.CRE - Prob. 41CRECh. 6.CRE - POKER From a standard 52-card deck, how many...Ch. 6.CRE - Prob. 43CRECh. 6.CRE - TEAM SELECTION There are eight seniors and six...Ch. 6.CRE - Prob. 45CRECh. 6.CRE - SEATING ARRANGEMENTS In how many ways can seven...Ch. 6.CRE - Prob. 47CRECh. 6.CRE - Prob. 48CRECh. 6.CRE - Prob. 49CRECh. 6.CRE - Prob. 50CRECh. 6.BMO - Prob. 1BMOCh. 6.BMO - Prob. 2BMOCh. 6.BMO - In how many ways can four compact discs be...Ch. 6.BMO - Prob. 4BMOCh. 6.BMO - Prob. 5BMO
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- 5. [-/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_forward1. Consider the following preference ballots: Number of voters Rankings 6 5 4 2 1st choice A DCB DC 2nd choice B B D 3rd choice DCBD 4th choice CA AAA For each of the four voting systems we have studied, determine who would win the election in each case. (Remember: For plurality with runoff, all but the top two vote-getters are simultaneously eliminated at the end of round 1.)arrow_forwardPractice k Help ises A 96 Anewer The probability that you get a sum of at least 10 is Determine the number of ways that the specified event can occur when two number cubes are rolled. 1. Getting a sum of 9 or 10 3. Getting a sum less than 5 2. Getting a sum of 6 or 7 4. Getting a sum that is odd Tell whether you would use the addition principle or the multiplication principle to determine the total number of possible outcomes for the situation described. 5. Rolling three number cubes 6. Getting a sum of 10 or 12 after rolling three number cubes A set of playing cards contains four groups of cards designated by color (black, red, yellow, and green) with cards numbered from 1 to 14 in each group. Determine the number of ways that the specified event can occur when a card is drawn from the set. 7. Drawing a 13 or 14 9. Drawing a number less than 4 8. Drawing a yellow or green card 10. Drawing a black, red, or green car The spinner is divided into equal parts. Find the specified…arrow_forward
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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
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Elementary Geometry For College Students, 7e
Geometry
ISBN:9781337614085
Author:Alexander, Daniel C.; Koeberlein, Geralyn M.
Publisher:Cengage,
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Holt Mcdougal Larson Pre-algebra: Student Edition...
Algebra
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
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College Algebra (MindTap Course List)
Algebra
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:Cengage Learning
Grade 12 and UG/ Introduction to logical statements and truth tables; Author: Dr Trefor Bazett;https://www.youtube.com/watch?v=q2eyZZK-OIk;License: Standard YouTube License, CC-BY