An unfair coin has a probability of coming up heads

Assignment Help Finance Basics
Reference no: EM13831147

Question 1 An unfair coin has a probability of coming up heads of 0.65. The coin is flipped 50 times. What is the probability it will come up heads 25 or fewer times? (Give answer to at least 3 decimal places).

Question 2 An insurance company writes policies for a large number of newly-licensed drivers each year. Suppose 40% of these are low-risk drivers, 40% are moderate risk, and 20% are high risk. The company has no way to know which group any individual driver falls in when it writes the policies. None of the low-risk drivers will have an at-fault accident in the next year, but 10% of the moderate-risk and 20% of the high-risk drivers will have such an accident. If a driver has an at-fault accident in the next year, what is the probability that he or she is high-risk?

Reference no: EM13831147

Questions Cloud

Explain the problem from a closed-system perspective : Description of the problem that you identified in your selected organization. Explain the problem from a closed-system perspective. Then, describe how the problem could be addressed by viewing it from an open-system perspective
Genesis energy capital plan report : Genesis Energy Capital Plan Report
How digital media has been used to influence individuals : In this assignment, you will research and identify articles/news stories that demonstrate how digital media has been used to influence individuals or organizations
Analyze the measures of liquidity : Analyze the measures of liquidity
An unfair coin has a probability of coming up heads : An unfair coin has a probability of coming up heads
Harry and tom breach contract : Harry and Tom Breach Contract-Tom spent his time away from work on his hobby, model trains. His train set was very large and consisted of rare and one-of-a-kind trains
Effect of this ongoing chain of events at each of the banks : Suppose that First National Bank, Second National Bank, and Third National Bank have zero excess reserves. The required reserve ratio is 20%. The Federal Reserve buys a government bond worth $1.5 million from John, a client of First National Bank. Fi..
Calculate algebraically for equilibrium price-marginal cost : Robert’s New Way Vacuum Cleaner Company is a newly started small business that produces vacuum cleaners and belongs to a monopolistically competitive market. What are the profit-maximizing price and output levels? Explain them and calculate algebraic..
Multiple regression model by adding a new assumption : Your textbook modifies the four assumptions for the multiple regression model by adding a new assumption. This represents an extension of the cross-sectional data case, where errors are uncorrelated across entities.

Reviews

Write a Review

Finance Basics Questions & Answers

  What rate of return will be earned from the purchase

The land should be worth at least $60000 after 10 years. What rate of return will be earned from the purchase of the lot?

  What is the accounting break-even level of sales

What is the NPV break-even level of sales assuming a tax rate of 30%, a 10-year project life, and a discount rate of 12%?

  Calculation of expected return

XYZ Corporation stock has a 50% chance of producing a 30% return, a 25 percent chance of producing a 9% return, and a 25% chance of producing a -25 percent return.

  Cost and benefit analysis for eliminating pollution

Sometimes market activities have unintended positive or negative effects outside the market's scope. This is called an externality. Assume that you are a policy creator concerned with correcting the effects of gases and particulates emitted by and lo..

  Which is not a typical benefit of credit derivatives

Which is not a typical benefit of credit derivatives? (a) They make it easier to price other securities that have credit risk. (b) They may be designed for the diversification of credit risk away from other risks

  Construct a pro forma income statement for the first year

Construct a pro forma income statement for the first year and second year for the following assumptions

  Yield to maturity and yield to call

Illustrate out the differences between the yield to maturity (YTM) and the yield to call (YTC) on a bond. Why would the return to the investor be different if a bond is called? Why?

  Success or failure of a merger

There are many factors that can influence the success or failure of a merger. Prior to merging with another company, managers should consider operational synergy, economies of scale, financial synergy, company valuation, cash flows, and tax saving..

  Testable hypothesis-confidence level and degrees of freedom

Develop a research question, testable hypothesis, confidence level, and degrees of freedom. Draw the appropriate conclusions with respect to female and male HR salary levels. Report the required "t" critical values based on the degrees of freedom...

  Arithmetic average versus geometric average

Discuss and explain the difference between arithmetic average versus geometric average and which one is more effective or provides a more complete picture when valuing a stock's past performance over the last 5 years?

  What rate of return is built into the annuity

Suppose you just won the state lottery, and you have a choice between receiving $2,550,000 today or a 20-year annuity of $250,000, with the first payment coming one year from today. What rate of return is built into the annuity? Disregard taxes.

  Russos gas distributor inc wants to determine the required

russos gas distributor inc. wants to determine the required return on a stock with a beta coefficient of 0.5. assuming

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