Reference no: EM131086989
Econ 310, Spring 2014- Week 4:
Problem 1- Finally, Two-face has Batman in a corner. Now it's time to flip his coin to decide the fate of Batman. To add fun to the gamble, Two-face decides to flip his coin three times. (Suppose his coin his fair.)
1. Define a sample space S and probability measure P representing possible outcomes of the coin flips.
2. Let X denote the number of heads. Define the random variable X as a function from S to {0, 1, 2, 3}.
3. Determine the distribution of X.
4. Compute the expected value, variance, and standard deviation of X.
5. Two-face tells Batman that at least two heads will cost him his life. Batman couter-proposes to make it three. How much will Batman's chances of survival improve if Two-face accepts the proposal?
Problem 2- The table below contains the joint distribution of the random variables RA and RB representing the percentage returns on Acme Inc, and Biloxi Co.
|
RB
|
0.40
|
0.00
|
RA
|
0.40
|
½ - ∈
|
∈
|
0.00
|
∈
|
½ - ∈
|
1. Find the mean and variance of RA. What about RB?
2. Find the covariance and correlation coefficient between RA and RB.
Let RP = ½ RA + ½ RB represent the return on a 50/50 mix of the two assets.
1. If ∈ = 0, what is the distribution of RP?
2. If ∈ = 0.10, what is the distribution of RP? Compare the answer with the previous question. What are E(RP) and V ar(RP)?
3. Is RP preferable to RA or RB?
4. For any ∈ which is slightly bigger than zero, do you still have the same conclusion as in the last part?
Strategy-making-strategy-executing process
: 1. Which one of the following is notone of the five basic tasks of the strategy-making, strategy-executing process?
|
Find the output force when the input force is 10 lb
: Find the output force (from the large piston) when the input force is 10 lb.
|
What is end product of transduction in the taste receptors
: Radio waves, X-rays, and gamma rays, just like light, are all forms of electromagnetic radiant energy. Why do we only get sensations (sensory qualia) from light and not from these other forms of electromagnetic radiation?
|
Compute the correct amounts for pals income
: Compute the correct amounts for each of the following items using the equity method of accounting for Pal's investment: Pal's income from its investment in Sap for the year ended December 31, 2011.
|
Define a sample space and probability measure
: Two-face has Batman in a corner. Now it's time to flip his coin to decide the fate of Batman. To add fun to the gamble, Two-face decides to flip his coin three times. (Suppose his coin his fair.) Define a sample space S and probability measure P re..
|
Classify each of the given activities as either a unit-level
: The following activities occur at Greenwich Corporation, a company that manufactures a variety of products. Classify each of the activities above as either a unit-level, batch-level, product-level, or organization- sustaining activity.
|
Prepare the journal entries made by mcdonald inc
: On January 3, 2011, McDonald Inc. purchased 40% of the outstanding common stock of Old Farms Co., Prepare the journal entries made by McDonald Inc. during 2011 related to its investment in Old Farms.
|
What kinds of sensation be produced by different wavelengths
: Imagine that somehow we could "rewire" the visual system so that the optic nerve, via the thalamus, would deliver its action potentials to the taste cortex. What would a person with such "wiring" experience when they walked into a room and switche..
|
Can financial information be reported according to gaap
: why is there concern that financial statements may still contain fraudulent information? Can financial information be reported according to GAAP and still be fraudulent?
|