Question regarding the discrete distribution

Assignment Help Financial Management
Reference no: EM131058123

The Binomial Distribution is a discrete distribution because there are only two possibilities: Yes/No, Heads/Tails etc. What is the probability of tossing three Heads in a row? You can get the answer using the Multiplication rule, or by using the Binomial Formula, or by using the Binomial Table. Can you use one of these and compute the answer?

Reference no: EM131058123

Questions Cloud

Bond prices versus yields : What is the relationship between the price of a bond and its YTM? Explain why some bonds sell at a premium over par value while other bonds sell at a discount. What do you know about the relationship between the coupon rate and the YTM for premium bo..
When it performs its best-case scenario analysis : Sloan Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,600 per unit; variable costs = $320 per unit; fixed costs = $2.7 million; quantity = 78,000 units. What values should the company use for the four va..
Sample from the same population : Suppose a researcher collected data with n = 200 and came up with a sample mean of 83 and 95% confidence interval [78, 88]. If the researcher collected another sample from the same population with n = 200,
Why then do we have weak entity sets : Why, then, do we have weak entity sets?
Question regarding the discrete distribution : The Binomial Distribution is a discrete distribution because there are only two possibilities: Yes/No, Heads/Tails etc. What is the probability of tossing three Heads in a row?
Break-even point and sensitivity analysis : Sensitivity Analysis and Break-Even Point: We are evaluating a project that costs $644,000, has an eight-year life, and has no salvage. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 70,000 unit..
What are the monthly payments on the mortgage : What are the monthly payments on the mortgage? Construct the amortization schedule for the first 10 payments. If the rate offered was 7.50 percent, what would the monthly payments be?
Convert the above e-r diagram into a set of relations : Draw an E-R diagram with the student and instructor entities, and the advisor relationship, with the above extensions to track temporal changes.
Planning process for a firm : You are involved in the planning process for a firm that is expected to have a large increase in sales for the next year. Which type of firm would benefit the most from that sales increase: a firm with low fixed costs and high variable costs or a ..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the duration of bond with three years to maturity

What is the duration of a bond with three years to maturity and a coupon of 7.7 percent paid annually if the bond sells at par?

  Is this a discount or premium bond

Calculate the price of a 5.8 percent coupon bond with 10 years left to maturity and a market interest rate of 4.6 percent Par Value $1000.  Is this a discount or premium bond

  Based on the CAPM-What is the risk-free rate

Assume these securities are correctly priced. Based on the CAPM, what is the expected return on the market? What is the risk-free rate?

  Financial planning you wish to purchase new car

As part of your financial planning you wish to purchase q new car exactly 7 years from today . The car you wish to purchase costs 14000 today and your research indicates that it's price will increase by 3% to 6% per year over the next 7 years.

  Calculate the expected return over the four-year period

Portfolio analysis You have been given the expected return data shown in the first table on three assets-F, G, and H- over the period 2013-2016. Expected return Asset F 2016 16%, 2017 17% 2018 18% 2019 19%- Asset G 2016 17% 2017 16% 2018 15% 2019 14%..

  Appropriate required rate of return

Calculate the NPV given the following cash flows if the appropriate required rate of return is 8%. Should the project be accepted? YEAR CASH FLOWS 0 -$40,000 1 30,000 2 30,000 3 20,000 4 20,000 5 25,000 6 25,000

  What is the target variable cost per mouse

A company believes it can sell 5,500,000 of its proposed new optical mouse at a price of $10.50 each. There will be $8,000,000 in fixed costs associated with the mouse. If the company desires to make a profit $2,000,000 on the mouse, what is the targ..

  Equity mutual fund

Rodney Cashman has been investing $2,000 quarterly for the past 18 years in an equity mutual fund. How much is the fund worth now assuming he has earned 11.5% compounded quarterly on his investment?

  Recommending controls

You will have the opportunity in this Discussion to recommend sound internal controls over sales invoices and receivables. If controls are not in place over these functions, companies are susceptible to errors, fraud, and losses. In the following sce..

  Considered a separate legal entity from its shareholders

A general partnership must have at least 2 members with each having their potential financial loss in the partnership limited to their individual investment. The owner of a sole proprietorship has unlimited liability for the company’s debt. A corpora..

  Prior law restricted the ability of acquirers to use credits

In September 2008, the IRS changed tax laws to allow banks to utilize the tax loss carry forwards of banks they acquire to shield their future income from taxes (prior law restricted the ability of acquirers to use these credits).

  How much would you pay for one of these bonds

If you require a 9 percent return on bonds such as these with 5 years remaining until maturity and 8.2 percent on bonds such as these with 12 years remaining until maturity, how much would you pay for one of these bonds?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd