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1. For a new type of tire, a NASCAR team found the av- erage distance a set of tires would run during a race is 168 miles, with a standard deviation of 14 miles. Assume that tire mileage is independent and follows a Normal model.
a) If the team plans to change tires twice during a 500-mile race, what is the expected value and standard deviation of miles remaining after two changes?
b) What is the probability they won't have to change tires a third time before the end of a 500-mile race?
2. In the 4 * 100 medley relay event, four swimmers swim 100 yards, each using a different stroke. A college team preparing for the conference championship looks at the times their swimmers have posted and creates a model based on the following assumptions:
Swimmer
Mean
SD
1 (backstroke)
50.72
0.24
2 (breaststroke)
55.51
0.22
3 (butterfly)
49.43
0.25
4 (freestyle)
44.91
0.21
a) What are the mean and standard deviation for the relay team's total time in this event?
b) The team's best time so far this season was 3:19.48. (That's 199.48 seconds.) What is the probability that they will beat that time in the next event?
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
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Term Structure of Interest Rates
Write a report on Internal Controls
Prepare the bank reconciliation for company.
Create a cost-benefit analysis to evaluate the project
Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR
Distinguish between liquidity and profitability.
Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.
Simple Interest, Compound interest, discount rate, force of interest, AV, PV
CAPM and Venture Capital
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