Estimate small probability values

Assignment Help Engineering Mathematics
Reference no: EM131524253

Question: It was suggested that five is the minimum number of data points for the least likely category when constructing discrete distributions. In many cases, however, we must estimate probabilities that are extremely small or for which relatively few data are available. For example, the probability of bankruptcy for a firm is (hopefully) quite small, but it is important for both borrowers and lenders to know this small probability value. Typically, either expert opinion or proxy measures are used to determine these small probability values instead of using data, What makes us reluctant to use data to estimate small probability values?

Reference no: EM131524253

Questions Cloud

The roi of a cloud deployment : This assignment consists of three (3) sections: a narrative, a ROI Spreadsheet, and a project outline.
What are some of the features of well-written requirements : What are some of the features of well-written requirements?What are some of the most common problems with writing requirements?
What is the market price of this stock based on its dividend : Assume you work for a company that has issued 10000 shares of $100 par 5% preferred. What is the market price of this stock based on its dividend?
The roi of a cloud deployment : This assignment consists of three (3) sections: a narrative, a ROI Spreadsheet, and a project outline.
Estimate small probability values : It was suggested that five is the minimum number of data points for the least likely category when constructing discrete distributions.
What is the value of the preffered stock : What is the value of the preffered stock if it pays a $5 dividend?
Obtain an output with a simple linear regression : Obtain an output with a simple linear regression and a scatterplot graph (as in the tutorial) using the values as seen below.
Compare fit of normal distribution cdf to the empirical cdf : As discussed in the text, it often is possible to use a theoretical distribution as an approximation of the distribution of some sample data.
Weaknesses of informal specifications : What are the weaknesses of informal specifications?

Reviews

Write a Review

Engineering Mathematics Questions & Answers

  Suppose that the incubation times

The mean incubation time of fertilized chicken eggs keep at 100.5oF in a still-air incubator is 21 days. Suppose that the incubation times are approximately normally distributed with standard deviation of 1 day. If you are taking 400 random sample..

  What are the basic and non basic variables

Consider the partial simplex tableau shown below: In the tableau, what are the non basic variables? In the optimal tableau, what are the basic variables

  What is the average work-in-process within the factory

Consider a factory operating 24 hours per day consisting of two workstations. Arrivals to the first station occur at a rate of 10 per day.

  Calculate the mean and standard deviation for your month

What are the minimum, maximum and expected values for the total - Calculate the mean and standard deviation for your month and Draw a second graph showing both your month and the following month.

  What was the senior citizens total percentage savings

What price do senior citizens pay for the same item from the Trim-A Tree Shop - What was the senior citizen's total percentage savings? (percentage change) Give one decimal place on the percent.

  Compute b1 and b0

Compute B1 and B0 (for this I am having trouble finding the covariance and Sx if you could please write that out in detail)

  Use lagranges mean value theorem to determine a point on

use lagranges mean value theorem to determine a point on the curve y vx2 where the tangent is parallel to the chord

  Calculate safe vertical end reaction of an end notched beam

Develop a computer program to calculate the safe vertical end reaction of an end notched beam. The program input should include the allowable shear stress.

  Determine a sequence that will minimize makespan time

Compute Current period productivity and Previous period productivity. Did the worker's productivity increase, decrease, or remain the same? Determine a sequence that will minimize makespan time.

  Discuss the err method

As the supervisor of a facilities engineering department, you consider mobile cranes to be critical equipment.

  Set up a scatter diagram for speed and miles per gallon

A research analyst for an oil company wants to develop a model to predict miles per gallon based on highway speed.  An experiment is designed in which a test car is driven at speeds ranging from 10 miles per hour to 75 miles per hour.  The results ar..

  Simple regression model based problems

Test the null hypothesis that the slope coefficient is 0 versus the alternative hypothesis of greater than 0 using the probability of type 1 error equal to 0,05 and determine the two-sided 95% and 99% confidence intervals. the simple regression m..

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