develop simulation model-compute average amount, Basic Statistics

Bob Smith recently completed his MBA and accepted a job with a computer company. To ensure that his retirement is comfortable, he intends to invest $3,000 of his salary into a tax shelter retirement fund at the end of each year. Bob is not certain what the rate of return is, but knows that it is normally distributed with a mean of 13% and a standard deviation of 2%. If Bob is 30 years old, how much money should he expect to have when he is 60?

(a)   Develop a computer simulation model to determine how much will be in his retirement fund after 30 years.

(b)   Use a data table to perform 200 runs of the simulation model developed in part (a).

(c)   Compute the average amount the fund will be worth using the results from the 200 runs in the data table.

(d)   Obtain a histogram for the 200 run results. Use at least 7 class intervals.

(e)   Based on the simulation results in the data table, estimate the probability that the fund will be more than $750,000 and the probability that the fund will be more than $1,000,000.

 

Posted Date: 3/7/2013 5:01:55 AM | Location : United States







Related Discussions:- develop simulation model-compute average amount, Assignment Help, Ask Question on develop simulation model-compute average amount, Get Answer, Expert's Help, develop simulation model-compute average amount Discussions

Write discussion on develop simulation model-compute average amount
Your posts are moderated
Related Questions

Marks(less than)-10,20,30,40,50,60,70,80 Number of students-4,8,25,34,41,46,50,60 Draw a median graph for the followin

how do I answer: with the aid of a decision tree prepare a quantitative report advising the company on the optimal course of action. (use a time horizon of 6years and ignore the ti

Your earlier comparison of three energy technologies showed only a borderline effect using the non-parametric Kruskal-Wallis statistic. This result left you hanging on a decision o

Definition and examples of asset and liabilities

i need problems and their answers in a simplified way to understand the material because im really having troubles understanding how to solve conversion bonds and share warrants pr

'Statistics is the backbone of decision-making'. Comment.

Proton-electron hypothesis: this was put forward in the year 1930 to account for the emission of alpha and beta particles from the nuclei of radioactive elements. The positive char

what are the function of statistics in business onganizations?