
Elementary Technical Mathematics
12th Edition
ISBN: 9781337630580
Author: Dale Ewen
Publisher: Cengage Learning
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Chapter 6.4, Problem 20E
To determine
To calculate: The solution of the equation
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Construct a know-show table for each statement below that appears to be true.
Problem 3. Pricing a multi-stock option the Margrabe formula
The purpose of this problem is to price a swap option in a 2-stock model, similarly as
what we did in the example in the lectures. We consider a two-dimensional Brownian
motion given by W₁ = (W(¹), W(2)) on a probability space (Q, F,P). Two stock prices
are modeled by the following equations:
dX
=
dY₁ =
X₁ (rdt+
rdt+0₁dW!)
(²)),
Y₁ (rdt+dW+0zdW!"),
with Xo
xo and Yo =yo. This corresponds to the multi-stock model studied in class,
but with notation (X+, Y₁) instead of (S(1), S(2)). Given the model above, the measure
P is already the risk-neutral measure (Both stocks have rate of return r). We write
σ = 0₁+0%. We consider a swap option, which gives you the right, at time T, to
exchange one share of X for one share of Y. That is, the option has payoff
F=(Yr-XT).
(a) We first assume that r = 0 (for questions (a)-(f)). Write an explicit expression for
the process Xt.
Reminder before proceeding to question (b): Girsanov's theorem…
Problem 1. Multi-stock model
We consider a 2-stock model similar to the one studied in class. Namely, we consider
=
S(1)
S(2)
=
S(¹) exp (σ1B(1) + (M1 - 0/1 )
S(²) exp (02B(2) + (H₂-
M2
where (B(¹) ) +20 and (B(2) ) +≥o are two Brownian motions, with
t≥0
Cov (B(¹), B(2)) = p min{t, s}.
"
The purpose of this problem is to prove that there indeed exists a 2-dimensional Brownian
motion (W+)+20 (W(1), W(2))+20 such that
=
S(1)
S(2)
=
=
S(¹) exp (011W(¹) + (μ₁ - 01/1) t)
롱)
S(²) exp (021W (1) + 022W(2) + (112 - 03/01/12) t).
where σ11, 21, 22 are constants to be determined (as functions of σ1, σ2, p).
Hint: The constants will follow the formulas developed in the lectures.
(a) To show existence of (Ŵ+), first write the expression for both W. (¹) and W (2)
functions of (B(1), B(²)).
as
(b) Using the formulas obtained in (a), show that the process (WA) is actually a 2-
dimensional standard Brownian motion (i.e. show that each component is normal,
with mean 0, variance t, and that their…
Chapter 6 Solutions
Elementary Technical Mathematics
Ch. 6.1 - Solve each equation and check: x+2=8Ch. 6.1 - Prob. 2ECh. 6.1 - Prob. 3ECh. 6.1 - Solve each equation and check: 23n=6Ch. 6.1 - Solve each equation and check: w712=3Ch. 6.1 - Prob. 6ECh. 6.1 - Solve each equation and check: x13=1.5Ch. 6.1 - Solve each equation and check: n+12=5Ch. 6.1 - Solve each equation and check: 3b=15.6Ch. 6.1 - Solve each equation and check: y17=25
Ch. 6.1 - Prob. 11ECh. 6.1 - Prob. 12ECh. 6.1 - Solve each equation and check: 2=x5Ch. 6.1 - Prob. 14ECh. 6.1 - Solve each equation and check: 17=3+wCh. 6.1 - Solve each equation and check: 49=32+wCh. 6.1 - Solve each equation and check: 14b=57Ch. 6.1 - Prob. 18ECh. 6.1 - Prob. 19ECh. 6.1 - Prob. 20ECh. 6.1 - Solve each equation and check: x+5=5Ch. 6.1 - Prob. 22ECh. 6.1 - Prob. 23ECh. 6.1 - Solve each equation and check: 5x125=0Ch. 6.1 - Solve each equation and check: x7=56Ch. 6.1 - Prob. 26ECh. 6.1 - Prob. 27ECh. 6.1 - Prob. 28ECh. 6.1 - Solve each equation and check: x=2Ch. 6.1 - Prob. 30ECh. 6.1 - Prob. 31ECh. 6.1 - Prob. 32ECh. 6.1 - Solve each equation and check: 103x=16Ch. 6.1 - Prob. 34ECh. 6.1 - Prob. 35ECh. 6.1 - Solve each equation and check: x5+4=9Ch. 6.1 - Solve each equation and check: 2x=6Ch. 6.1 - Prob. 38ECh. 6.1 - Prob. 39ECh. 6.1 - Prob. 40ECh. 6.1 - Solve each equation and check: 3x5=12Ch. 6.1 - Prob. 42ECh. 6.1 - Prob. 43ECh. 6.1 - Prob. 44ECh. 6.1 - Solve each equation and check: 2x3=7Ch. 6.1 - Prob. 46ECh. 6.1 - Prob. 47ECh. 6.1 - Solve each equation and check: 28=73rCh. 6.1 - Solve each equation and check: 5x=6Ch. 6.1 - Prob. 50ECh. 6.1 - Solve each equation and check: 54y13=17.8Ch. 6.1 - Prob. 52ECh. 6.1 - Solve each equation and check: 28w56=8Ch. 6.1 - Prob. 54ECh. 6.1 - Prob. 55ECh. 6.1 - Prob. 56ECh. 6.1 - Solve each equation and check: 313y=41Ch. 6.1 - Prob. 58ECh. 6.1 - Solve each equation and check: 83=174xCh. 6.1 - Solve each equation and check: 58=5m+52Ch. 6.2 - Solve each equation and check: 4y+9=7y15Ch. 6.2 - Solve each equation and check: 2y45=yCh. 6.2 - Solve each equation and check: 5x+3=7x5Ch. 6.2 - Prob. 4ECh. 6.2 - Solve each equation and check: 2x+7=5x21Ch. 6.2 - Prob. 6ECh. 6.2 - Prob. 7ECh. 6.2 - Prob. 8ECh. 6.2 - Solve each equation and check: 3x+17=6x37Ch. 6.2 - Prob. 10ECh. 6.2 - Prob. 11ECh. 6.2 - Solve each equation and check: 5y+12=12y5Ch. 6.2 - Solve each equation and check: 3x2=5x+8Ch. 6.2 - Prob. 14ECh. 6.2 - Solve each equation and check: 4x+25=6x45Ch. 6.2 - Prob. 16ECh. 6.2 - Solve each equation and check: 5x+4=10x7Ch. 6.2 - Solve each equation and check: 3x2=5x20Ch. 6.2 - Solve each equation and check: 27+5x=9+3xCh. 6.2 - Solve each equation and check: 2y+8=5y1Ch. 6.2 - Solve each equation and check: 7x+18=11x36Ch. 6.2 - Prob. 22ECh. 6.2 - Prob. 23ECh. 6.2 - Prob. 24ECh. 6.2 - Solve each equation and check: 4x+2=8x7Ch. 6.2 - Solve each equation and check: 6x1=9x9Ch. 6.2 - Prob. 27ECh. 6.2 - Prob. 28ECh. 6.2 - Solve each equation and check: 3x+1=17xCh. 6.2 - Solve each equation and check: 174y=14yCh. 6.3 - Solve each equation and check: 2(x+3)6=10Ch. 6.3 - Solve each equation and check: 3x+5(x6)=32Ch. 6.3 - Prob. 3ECh. 6.3 - Solve each equation and check: 5m(2m7)=5Ch. 6.3 - Solve each equation and check: 16=3(x4)Ch. 6.3 - Prob. 6ECh. 6.3 - Solve each equation and check: 5a(3a+4)=8Ch. 6.3 - Prob. 8ECh. 6.3 - Solve each equation and check: 5a4(a3)=7Ch. 6.3 - Prob. 10ECh. 6.3 - Prob. 11ECh. 6.3 - Solve each equation and check: 278(2y)=13Ch. 6.3 - Solve each equation and check: 2a(5a7)=22Ch. 6.3 - Prob. 14ECh. 6.3 - Prob. 15ECh. 6.3 - Prob. 16ECh. 6.3 - Solve each equation and check: 3x7+17(1x)=6Ch. 6.3 - Prob. 18ECh. 6.3 - Solve each equation and check: 6b=27+3bCh. 6.3 - Solve each equation and check: 2a+4=a3Ch. 6.3 - Solve each equation and check: 4(25x)=3x+2Ch. 6.3 - Prob. 22ECh. 6.3 - Prob. 23ECh. 6.3 - Prob. 24ECh. 6.3 - Solve each equation and check: 6x+2=2(17x)Ch. 6.3 - Solve each equation and check: 6(17x)=24xCh. 6.3 - Prob. 27ECh. 6.3 - Prob. 28ECh. 6.3 - Solve each equation and check: 3(x+4)+3x=6Ch. 6.3 - Prob. 30ECh. 6.3 - Prob. 31ECh. 6.3 - Prob. 32ECh. 6.3 - Solve each equation and check: 9m3(m5)=7m3Ch. 6.3 - Prob. 34ECh. 6.3 - Prob. 35ECh. 6.3 - Prob. 36ECh. 6.3 - Solve each equation and check: 8(x5)=13xCh. 6.3 - Prob. 38ECh. 6.3 - Prob. 39ECh. 6.3 - Prob. 40ECh. 6.3 - Solve each equation and check:...Ch. 6.3 - Prob. 42ECh. 6.3 - Prob. 43ECh. 6.3 - Prob. 44ECh. 6.3 - Solve each equation and check: 4(y+2)=8(y4)+7Ch. 6.3 - Prob. 46ECh. 6.3 - Solve each equation and check:...Ch. 6.3 - Prob. 48ECh. 6.3 - Solve each equation and check: 12+8(2y+3)=(y+7)16Ch. 6.3 - Prob. 50ECh. 6.3 - Prob. 51ECh. 6.3 - Prob. 52ECh. 6.3 - Prob. 53ECh. 6.3 - Solve each equation and check: 2(5y+1)+16=4+3(y7)Ch. 6.3 - Prob. 55ECh. 6.3 - Prob. 56ECh. 6.3 - Solve each equation and check:...Ch. 6.3 - Prob. 58ECh. 6.3 - Prob. 59ECh. 6.3 - Prob. 60ECh. 6.4 - Solve each equation and check: 2x3=326Ch. 6.4 - Solve each equation and check: 5x7=2014Ch. 6.4 - Prob. 3ECh. 6.4 - Solve each equation and check: 53x=1313Ch. 6.4 - Solve each equation and check: 212x=712Ch. 6.4 - Solve each equation and check: 12+x3=52Ch. 6.4 - Prob. 7ECh. 6.4 - Prob. 8ECh. 6.4 - Solve each equation and check: 34x3=512Ch. 6.4 - Prob. 10ECh. 6.4 - Prob. 11ECh. 6.4 - Solve each equation and check: 2x37=x2Ch. 6.4 - Solve each equation and check: y31=y6Ch. 6.4 - Prob. 14ECh. 6.4 - Solve each equation and check: 3x4720=25xCh. 6.4 - Solve each equation and check: 5x6+13(6+x)=37Ch. 6.4 - Solve each equation and check: x2+23(2x+3)=46Ch. 6.4 - Solve each equation and check: 16x19(2x3)=1Ch. 6.4 - Prob. 19ECh. 6.4 - Prob. 20ECh. 6.4 - Solve each equation and check: 3x24163x1212=3Ch. 6.4 - Prob. 22ECh. 6.4 - Solve each equation and check: 5x+6x814+10x+66=43Ch. 6.4 - Prob. 24ECh. 6.4 - Solve each equation and check: 4x6x+52=6x68Ch. 6.4 - Prob. 26ECh. 6.4 - Prob. 27ECh. 6.4 - Prob. 28ECh. 6.4 - Solve each equation and check: 51x=7Ch. 6.4 - Solve each equation and check: 3x6=8Ch. 6.4 - Prob. 31ECh. 6.4 - Solve each equation and check: 17x=8Ch. 6.4 - Solve each equation and check: 3x8=7Ch. 6.4 - Prob. 34ECh. 6.4 - Prob. 35ECh. 6.4 - Prob. 36ECh. 6.4 - Solve each equation and check: 6x+5=14Ch. 6.4 - Prob. 38ECh. 6.4 - Solve each equation and check: 12x=143x13Ch. 6.4 - Prob. 40ECh. 6.4 - Prob. 41ECh. 6.4 - Solve each equation and check: 8x+14=5x+13Ch. 6.5 - Translate each phrase or sentence into algebraic...Ch. 6.5 - Prob. 2ECh. 6.5 - Translate each phrase or sentence into algebraic...Ch. 6.5 - Prob. 4ECh. 6.5 - Translate each phrase or sentence into algebraic...Ch. 6.5 - Translate each phrase or sentence into algebraic...Ch. 6.5 - Translate each phrase or sentence into algebraic...Ch. 6.5 - Prob. 8ECh. 6.5 - Translate each phrase or sentence into algebraic...Ch. 6.5 - Translate each phrase or sentence into algebraic...Ch. 6.5 - Translate each phrase or sentence into algebraic...Ch. 6.5 - Translate each phrase or sentence into algebraic...Ch. 6.5 - Translate each phrase or sentence into algebraic...Ch. 6.5 - Prob. 14ECh. 6.5 - Translate each phrase or sentence into algebraic...Ch. 6.5 - Translate each phrase or sentence into algebraic...Ch. 6.5 - Translate each phrase or sentence into algebraic...Ch. 6.5 - Translate each phrase or sentence into algebraic...Ch. 6.5 - Prob. 19ECh. 6.5 - Translate each phrase or sentence into algebraic...Ch. 6.5 - Translate each phrase or sentence into algebraic...Ch. 6.5 - Prob. 22ECh. 6.5 - Translate each phrase or sentence into algebraic...Ch. 6.5 - Translate each phrase or sentence into algebraic...Ch. 6.5 - Prob. 25ECh. 6.6 - A built-in bookcase containing eight book shelves...Ch. 6.6 - Saw a board 8 ft 4 in. long into nine equal...Ch. 6.6 - Separate an order of 256 light fixtures so that...Ch. 6.6 - Distribute $1000 into three parts so that one part...Ch. 6.6 - Distribute $4950 among John, Maria, and Betsy so...Ch. 6.6 - Distribute $4950 among John, Maria, and Betsy so...Ch. 6.6 - A rectangle is twice as long as it is wide. Its...Ch. 6.6 - The length of a rectangle is 4 cm less than twice...Ch. 6.6 - One side of a rectangular yard is bounded by the...Ch. 6.6 - A given type of concrete contains an amount of...Ch. 6.6 - The perimeter of a triangle is 122 ft. The lengths...Ch. 6.6 - Cut a board 20 ft long into three pieces so that...Ch. 6.6 - Cut a 12-ft beam into two pieces so that one piece...Ch. 6.6 - The total cost of three automobile batteries is...Ch. 6.6 - The total cost of 20 boards is $166. One size...Ch. 6.6 - Amy and Kurt earned a total of $512 by working a...Ch. 6.6 - Joyce invests $7500 in two savings accounts. One...Ch. 6.6 - Chuck receives loans totaling $12,000 from two...Ch. 6.6 - Regular milk has 4% butterfat. How many litres of...Ch. 6.6 - How much pure alcohol must be added to 750 mL of a...Ch. 6.6 - Mix a solution that is 30% alcohol with a solution...Ch. 6.6 - Prob. 22ECh. 6.6 - A 12-quart cooling system is checked and found to...Ch. 6.6 - In testing an engine, various mixtures of gasoline...Ch. 6.6 - Assume you have sea water that weighs 64lb/ft3 and...Ch. 6.6 - Prob. 26ECh. 6.6 - Jeff invested $30,000 in a business whereas his...Ch. 6.6 - Prob. 28ECh. 6.6 - Cloth table coverings are to be cut for 8...Ch. 6.6 - How many quarts of water must be added to 3 gal of...Ch. 6.6 - Ground beef that is 90% lean costs 114 times the...Ch. 6.7 - Solve each formula for the given letter: E=IrforrCh. 6.7 - Solve each formula for the given letter: A=bhforbCh. 6.7 - Solve each formula for the given letter: F=maforaCh. 6.7 - Prob. 4ECh. 6.7 - Solve each formula for the given letter: C=dfordCh. 6.7 - Solve each formula for the given letter: V=IRforRCh. 6.7 - Solve each formula for the given letter: V=lwhforwCh. 6.7 - Solve each formula for the given letter:...Ch. 6.7 - Solve each formula for the given letter: A=2rhforhCh. 6.7 - Solve each formula for the given letter: C=2rforrCh. 6.7 - Solve each formula for the given letter:...Ch. 6.7 - Prob. 12ECh. 6.7 - Solve each formula for the given letter: I=QtfortCh. 6.7 - Prob. 14ECh. 6.7 - Prob. 15ECh. 6.7 - Solve each formula for the given letter: I=EZforZCh. 6.7 - Solve each formula for the given letter: I=VRforRCh. 6.7 - Prob. 18ECh. 6.7 - Solve each formula for the given letter:...Ch. 6.7 - Solve each formula for the given letter: R=2PforPCh. 6.7 - Solve each formula for the given letter:...Ch. 6.7 - Prob. 22ECh. 6.7 - Prob. 23ECh. 6.7 - Solve each formula for the given letter:...Ch. 6.7 - Solve each formula for the given letter:...Ch. 6.7 - Prob. 26ECh. 6.7 - Prob. 27ECh. 6.7 - Solve each formula for the given letter:...Ch. 6.7 - Solve each formula for the given letter:...Ch. 6.7 - Prob. 30ECh. 6.7 - Prob. 31ECh. 6.7 - Solve each formula for the given letter:...Ch. 6.7 - Solve each formula for the given letter:...Ch. 6.7 - Prob. 34ECh. 6.7 - Solve each formula for the given letter:...Ch. 6.7 - Solve each formula for the given letter:...Ch. 6.7 - Solve each formula for the given letter:...Ch. 6.7 - Prob. 38ECh. 6.7 - Prob. 39ECh. 6.7 - Solve each formula for the given letter:...Ch. 6.7 - Solve each formula for the given letter:...Ch. 6.7 - Solve each formula for the given letter:...Ch. 6.7 - Solve each formula for the given letter:...Ch. 6.7 - Solve each formula for the given letter:...Ch. 6.8 - a. Solve for the indicated. b. Then substitute the...Ch. 6.8 - Prob. 2ECh. 6.8 - a. Solve for the indicated. b. Then substitute the...Ch. 6.8 - Prob. 4ECh. 6.8 - a. Solve for the indicated. b. Then substitute the...Ch. 6.8 - Prob. 6ECh. 6.8 - Prob. 7ECh. 6.8 - a. Solve for the indicated. b. Then substitute the...Ch. 6.8 - a. Solve for the indicated. b. Then substitute the...Ch. 6.8 - Prob. 10ECh. 6.8 - a. Solve for the indicated. b. Then substitute the...Ch. 6.8 - a. Solve for the indicated. b. Then substitute the...Ch. 6.8 - a. Solve for the indicated. b. Then substitute the...Ch. 6.8 - a. Solve for the indicated. b. Then substitute the...Ch. 6.8 - a. Solve for the indicated. b. Then substitute the...Ch. 6.8 - a. Solve for the indicated. b. Then substitute the...Ch. 6.8 - a. Solve for the indicated. b. Then substitute the...Ch. 6.8 - a. Solve for the indicated. b. Then substitute the...Ch. 6.8 - a. Solve for the indicated. b. Then substitute the...Ch. 6.8 - Prob. 20ECh. 6.8 - Prob. 21ECh. 6.8 - The formula for piston displacement is P=cd2SN,...Ch. 6.8 - The length of a cylinder is given by l=Vcd2, where...Ch. 6.8 - A flashlight bulb is connected to a 1.50-V source....Ch. 6.8 - Prob. 25ECh. 6.8 - The volume of a box is given by V=lwh. Find the...Ch. 6.8 - The volume of a cylinder is given by the formula...Ch. 6.8 - The pressure at the bottom of a lake is found by...Ch. 6.8 - The equivalent resistance R of two resistances...Ch. 6.8 - The R value of insulation is given by the formula...Ch. 6.8 - A steel railroad rail expands and contracts...Ch. 6.8 - The inductive reactance, XL, of a coil is given by...Ch. 6.8 - Prob. 33ECh. 6.8 - Prob. 34ECh. 6.8 - Prob. 35ECh. 6.8 - Prob. 36ECh. 6.9 - Use the formula 1R=1R1+1R2 for Exercise 1-6: Given...Ch. 6.9 - Use the formula 1R=1R1+1R2 for Exercise 1-6: Given...Ch. 6.9 - Use the formula 1R=1R1+1R2 for Exercise 1-6: Given...Ch. 6.9 - Prob. 4ECh. 6.9 - Prob. 5ECh. 6.9 - Prob. 6ECh. 6.9 - Prob. 7ECh. 6.9 - Prob. 8ECh. 6.9 - Use the formula 1f=1s0+1si for Exercises 7-10:...Ch. 6.9 - Use the formula 1f=1s0+1si for Exercises 7-10:...Ch. 6.9 - Prob. 11ECh. 6.9 - Prob. 12ECh. 6.9 - Use the formula 1R=1R1+1R2+1R3 for Exercise 11-16:...Ch. 6.9 - Prob. 14ECh. 6.9 - Prob. 15ECh. 6.9 - Prob. 16ECh. 6.9 - Prob. 17ECh. 6.9 - Use the formula 1C=1C1+1C2+1C3 for Exercise 1-22:...Ch. 6.9 - Prob. 19ECh. 6.9 - Prob. 20ECh. 6.9 - Prob. 21ECh. 6.9 - Prob. 22ECh. 6.9 - Prob. 23ECh. 6.9 - Prob. 24ECh. 6 - Solve each equation and check: 2x+4=7Ch. 6 - Prob. 2RCh. 6 - Prob. 3RCh. 6 - Prob. 4RCh. 6 - Prob. 5RCh. 6 - Prob. 6RCh. 6 - Solve each equation and check: 2x+9=5x15Ch. 6 - Prob. 8RCh. 6 - Prob. 9RCh. 6 - Solve each equation and check: 4x+1=4xCh. 6 - Solve each equation and check: 7(x5)=11Ch. 6 - Prob. 12RCh. 6 - Prob. 13RCh. 6 - Solve each equation and check: 6(x+7)5(x+8)=0Ch. 6 - Prob. 15RCh. 6 - Prob. 16RCh. 6 - Solve each equation and check: 2x3=169Ch. 6 - Prob. 18RCh. 6 - Solve each equation and check: 3x4x15=3+x2Ch. 6 - Prob. 20RCh. 6 - Prob. 21RCh. 6 - The length of rectangle is 6 more than twice its...Ch. 6 - Mix a solution that is 60% acid with a solution...Ch. 6 - Solve each formula for the given letter: F=WgforgCh. 6 - Solve each formula for the given letter: P=WAforACh. 6 - Solve each formula for the given letter:...Ch. 6 - Solve each formula for the given letter:...Ch. 6 - Solve each formula for the given letter:...Ch. 6 - Solve each formula for the given letter:...Ch. 6 - Solve each formula for the given letter:...Ch. 6 - Prob. 31RCh. 6 - Prob. 32RCh. 6 - Prob. 33RCh. 6 - Prob. 34RCh. 6 - Solve each equation: x8=6Ch. 6 - Solve each equation: 4x=60Ch. 6 - Prob. 3TCh. 6 - Prob. 4TCh. 6 - Prob. 5TCh. 6 - Solve each equation: 2(x+10)=3(52x)+5Ch. 6 - Solve each equation: 12(3x6)=3(x2)Ch. 6 - Solve each equation: 8x9=56Ch. 6 - Solve each equation: 3x52=x5x10Ch. 6 - Solve each equation: 8x+6=2Ch. 6 - Solve each equation: x225=2x534Ch. 6 - Distribute $2700 among Jose, Maria, and George so...Ch. 6 - How much pure antifreeze must be added to 20 L of...Ch. 6 - Solve P=2(l+2)forlCh. 6 - Solve CT=C1+C2+C3forC2.Ch. 6 - Solve V=lwhforw.Ch. 6 - Given P=I2R,P=480,andl=5.0,findR.Ch. 6 - Given A=h2(a+b),A=260,h=13,anda=15,findbCh. 6 - Given 1C=1C1+1C2,C=20.0FandC2=30.0F,findC1.Ch. 6 - Given 1R=1R1+1R2+1R3,R1=225,R2=475,andR3=925,findRCh. 6 - Prob. 1CRCh. 6 - Prob. 2CRCh. 6 - Write 3.015104 in decimal form.Ch. 6 - Prob. 4CRCh. 6 - Prob. 5CRCh. 6 - Prob. 6CRCh. 6 - Prob. 7CRCh. 6 - Prob. 8CRCh. 6 - Read the measurement shown on the vernier caliper...Ch. 6 - Prob. 10CRCh. 6 - Prob. 11CRCh. 6 - Prob. 12CRCh. 6 - Prob. 13CRCh. 6 - Prob. 14CRCh. 6 - Prob. 15CRCh. 6 - Prob. 16CRCh. 6 - Simplify: (4x3y)(5x+2y)Ch. 6 - Simplify: 215x2y345x3y5Ch. 6 - Prob. 19CRCh. 6 - Prob. 20CRCh. 6 - Prob. 21CRCh. 6 - Prob. 22CRCh. 6 - Prob. 23CRCh. 6 - Prob. 24CRCh. 6 - Prob. 25CRCh. 6 - Prob. 26CRCh. 6 - Prob. 27CRCh. 6 - Prob. 28CRCh. 6 - Prob. 29CRCh. 6 - The perimeter of a rectangle is 30 ft. The width...
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- (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 rvices model are equally likely to occur. Hint: Modify model (8.10)-(8.19). Define a variable d, for each scenario and let d₂ > R - R¸ with d ≥ 0. Then make the objective function: Min 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 SG = proportion of portfolio invested in the small-cap growth fund SV = proportion of portfolio invested in the small-cap value fund R = the expected return of the portfolio R = the return of the portfolio in years. Min s.t. R₁ R₂ = R₁ R R5 = FS + IB + LG + LV + SG + SV = R₂ R d₁ =R- d₂z R- d₂ ZR- d₁R- d≥R- R = FS, IB, LG, LV, SG, SV…arrow_forwardThe Martin-Beck Company operates a plant in St. Louis with an annual capacity of 30,000 units. Product is shipped to regional distribution centers located in Boston, Atlanta, and Houston. Because of an anticipated increase in demand, Martin-Beck plans to increase capacity by constructing a new plant in one or more of the following cities: Detroit, Toledo, Denver, or Kansas. The following is a linear program used to determine which cities Martin-Beck should construct a plant in. Let y₁ = 1 if a plant is constructed in Detroit; 0 if not y₂ = 1 if a plant is constructed in Toledo; 0 if not y₂ = 1 if a plant is constructed in Denver; 0 if not y = 1 if a plant is constructed in Kansas City; 0 if not. The variables representing the amount shipped from each plant site to each distribution center are defined just as for a transportation problem. *,, = the units shipped in thousands from plant i to distribution center j i = 1 (Detroit), 2 (Toledo), 3 (Denver), 4 (Kansas City), 5 (St.Louis) and…arrow_forwardConsider the following mixed-integer linear program. Max 3x1 + 4x2 s.t. 4x1 + 7x2 ≤ 28 8x1 + 5x2 ≤ 40 x1, x2 ≥ and x1 integer (a) Graph the constraints for this problem. Indicate on your graph all feasible mixed-integer solutions. On the coordinate plane the horizontal axis is labeled x1 and the vertical axis is labeled x2. A region bounded by a series of connected line segments, and several horizontal lines are on the graph. The series of line segments connect the approximate points (0, 4), (3.889, 1.778), and (5, 0). The region is above the horizontal axis, to the right of the vertical axis, and below the line segments. At each integer value between 0 and 4 on the vertical axis, a horizontal line extends out from the vertical axis to the series of connect line segments. On the coordinate plane the horizontal axis is labeled x1 and the vertical axis is labeled x2. A region bounded by a series of connected line segments, and several…arrow_forward
- Consider the nonlinear optimization model stated below. Min s.t. 2x²-18x + 2XY + y² - 14Y + 53 x + 4Y ≤ 8 (a) Find the minimum solution to this problem. |at (X, Y) = (b) If the right-hand side of the constraint is increased from 8 to 9, how much do you expect the objective function to change? Based on the dual value on the constraint X + 4Y ≤ 8, we expect the optimal objective function value to decrease by (c) Resolve the problem with a new right-hand side of the constraint of 9. How does the actual change compare with your estimate? If we resolve the problem with a new right-hand-side of 9 the new optimal objective function value is| , so the actual change is a decrease of rather than what we expected in part (b).arrow_forwardStatement:If 2 | a and 3| a, then 6 a. So find three integers, and at least one integer should be negative. For each of your examples, determine if the statement is true or false.arrow_forwardStatement: If 4 | a and 6 | a, then 24 | a. So find three integers, and at least one integer should be negative. For each of your examples, determine if the statement is true or false.arrow_forward
- 2) dassify each critical point of the given plane autovers system x'=x-2x²-2xy y' = 4y-Sy³-7xyarrow_forwardEvaluate the next integralarrow_forward1. For each of the following, find the critical numbers of f, the intervals on which f is increasing or decreasing, and the relative maximum and minimum values of f. (a) f(x) = x² - 2x²+3 (b) f(x) = (x+1)5-5x-2 (c) f(x) = x2 x-9 2. For each of the following, find the intervals on which f is concave upward or downward and the inflection points of f. (a) f(x) = x - 2x²+3 (b) g(x) = x³- x (c) f(x)=x-6x3 + x-8 3. Find the relative maximum and minimum values of the following functions by using the Second Derivative Test. (a) f(x)=1+3x² - 2x3 (b) g(x) = 2x3 + 3x² - 12x-4arrow_forward
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