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
The following data relating cigarette smoking and death rates for lung cancers in 14 states in the USA. The data are based in part on records concerning 1960 cigarette tax receipts

hey goo day, i wanna know the definition of frequency distribution and how to conduct it like in examples?

Fenn Museum, a nongovernmental not-for-profit organization, had the following balances in its statement of functional expenses: Education $300,000 Fundraising 250,000 Management an

Definition and examples of asset and liabilities

Long Term Credit Decision In no more than one typed page, provide a statement of your decision to lend or not lend to this company based on your interpretation of the company'

identify a research report published by reputable agencies and evaluate the following ;the problem that was addressed

). Calculate Karl Pearson’s coefficient of correlation from the following data , using 20 as the working mean for price and 70 as the working mean for demand: Price: 14 16 17 18 1

Accounting Standards in  Canada:  : In 2005, the Accounting Standards Board in Canada promoted the use of IFRS over the use of GAAP. The companies of Canada are supposed to ad

what are the biomechanical techniques for swimming freestyle?

Difference between historigram and histogram