1. A company has a cash portfolio measured in millions. The drift is 0.1 per month, variance is 0.16per month. The initial cash is 2.0. a) Find the probability distribution after 6 months and after 1 year. b) Find the probability of a negative cash position at the end of 6 months and the end of 1 year. c) At what time in the future is the probability of a negative distribution greatest.

Answers

Answer 1

Answer:

Step-by-step explanation:

From the information given:

The probability distribution at the end of 6 months is determined as follows:

After 6 months;

Mean of probability distribution =  value of Initial cash  + [tex]\alpha[/tex]T  

=2.0 +(0.1 × 6)

=2.6

After 6 months;

The probability distribution's standard deviation is estimated by using the following formula:

Standard deviation:

[tex]= b\sqrt{T}[/tex]

[tex]= 0.4 \times \sqrt{6}[/tex]

= 0.9798

Hence, after 6 months;

The company's cash position is supposed to be allocated monthly, with the following expenses.

Mean                            2.6

Standard deviation     0.9798

Variance                      0.96

After 12 months, the probability distribution is as follows:

Mean = value of Initial cash  + [tex]\alpha[/tex]T

= 2.0 +(0.1 × 12)

= 3.2

The standard deviation is:

The standard deviation of probability distribution = [tex]b \sqrt{T}[/tex]

[tex]= 0.4 \times \sqrt{12}[/tex]

= 1.3856

Hence, after 6 months;

The company's cash position is supposed to be allocated monthly, with the following expenses.

Mean                            3.2

Sandard deviation      1.3856

Variance                      1.92

b)  

in 6-month distribution, the probability of the negative value of the cash position is as follows.

Now, for us to find the negative cash distribution;

We need to estimate the z -scores value.

The z-score inform us greatly on the concept of how far a particular data point is from the mean.

For a normal distribution;

[tex]z = \dfrac{x-\mu}{\sigma}[/tex]

Here;

the value of x = zero as a result that if it exceeds zero. the cash position will be negative.

[tex]z = \dfrac{x-\mu}{\sigma}[/tex]

[tex]z = \dfrac{0 - 2.6}{0.9798}[/tex]

[tex]z = -2.6536[/tex]

Using the standard distribution tables, it is now possible to calculate that the likelihood N(-2.65) equals 0.004 or 0.4 percent.

As a result, there's a 0.4 percent chance of getting a negative cash balance after six months.

For 12 months distribution:

The Probability of negative cash position is calculated as follows:

[tex]z = \dfrac{x-\mu}{\sigma} \\ \\ z = \dfrac{0-3.2}{1.3856} \\ \\ z = -2.3094[/tex]

Using the standard distribution tables,

N(-2.31) equals 0.0104 or 1.04 percent.

As a result, there's a 1.04 percent chance of getting a negative cash balance after 1 year  

c) To determine the time period over which the likelihood of achieving a negative cash condition is highest, it's necessary to examine the z-score more closely. Essentially, the z-score measures the difference between a given value(x) and the mean of all potential values [tex](\mu)[/tex], expressed in terms of the total set's standard deviation [tex](\sigma)[/tex]

This suggests that the higher the z-score, the greater the difference occurring between x and [tex]\mu[/tex], and thus the likelihood of receiving x is minimal. As a result, the best chance of finding a certain value is when the z-score is the lowest.

To do so, calculate the derivative of the z-score in relation to the time interval. The point where the derivative is equivalent to zero is where the z-scores are at their lowest.

The first step is to go over the z-score formula in more detail, as seen below.;

[tex]z = \dfrac{x-\mu}{\sigma} \\ \\ z = \dfrac{0-(initial \ value + \alpha T)}{b \sqrt{T}} \\ \\ z = \dfrac{-initial \ value }{b\sqrt{T}}-\dfrac{a \sqrt{T}}{b} \\ \\[/tex]

Now, compute the derivative of this equation with respect to T as follows:

[tex]\dfrac{dz}{dT}= \dfrac{initial \ value \times T^{-\dfrac{3}{2}}}{2b} - \dfrac{aT^{-\dfrac{1}{2}}}{2b}[/tex]

Now, figure out the value of T at which this derivative is equal to zero by substituting all values as follows:

[tex]0 = \dfrac{2.0 \times T^{-\dfrac{3}{2}}}{2\times 0.4}- \dfrac{0.1 \times T^{-\dfrac{1}{2}}}{2 \times 0.4} \\ \\ \\ 0.1 \times T^{-\dfrac{1}{2}}= 2.0 \times T^{-\dfrac{3}{2}} \\ \\ \\T = \dfrac{2}{0.1} \\ \\ \\ T = 20[/tex]

As a result, the time period in which achieving a negative cash condition is = 20 months.


Related Questions

find the mean 12,13,9,5,11,10

Answers

Answer:

10

Step-by-step explanation:

5+9+10+11+12+13=60 divided by 6 = 10

Mean = Sum of all observations/Number of observations

Mean = 12 + 13 + 9 + 5 + 11 + 10/6

=60/6

= 10

dont forget to like and mark me

Can someone help me with this pls [cry]

Answers

Answer: B

Step-by-step explanation:

JUST DID A QUIZ WITH IT

Find the explicit form of the arithmetic function of p if the first term is 12 and the common difference is 2. Then find the seventh term.​

Answers

Answer:

1st

Step-by-step explanation:

someone help i cannot open files please type ​

Answers

Answer:

175..................................

14. Enzo needs to buy some sand for his sandbox. He can either buy a
10-pound bag of sand for $18 or a 6-kilogram bag of sand for $20.
a. Which is a better value? Explain.
b. If Enzo needs 18 pounds of sand, what should he buy so that
he spends the least amount of money overall? Explain.

Answers

Answer:

A: 6 kilo bag B: He should buy two 10 pound bags.

Step-by-step explanation:

Brainliest?

The 6-kilogram pack of sand for $20 is a better value. Then the amount of money for 18 pounds of sand will be $27.18.

What is the rate?

The rate is the ratio of the amount of something to the unit.

For example - If the speed of the car is 20 km/h which means the car travels 20 km in one hour.

Enzo requirements to get some sand for his sandbox. He can either purchase a 10-pound sack of sand for $18 or a 6-kilogram pack of sand for $20.

The rate in the first case is written as,

⇒ 18/10

⇒ $1.8 per pound

The rate in the second case is written as,

⇒ 20/6

⇒ $3.33 per kilogram

⇒ $1.51 per pound

The 6-kilogram pack of sand for $20 is a better value.

Then the amount of money for 18 pounds of sand will be given as,

⇒ $1.51 x 18

⇒ $27.18

Thus, the amount of money for 18 pounds of sand will be $27.18.

More about the rate link is given below.

https://brainly.com/question/14731228

#SPJ2

Zachary's rectangle measures 4 1 /4 units by 4 1 /4 units. What is its area?

Answers

Answer:

169/12 square units.

Step-by-step explanation:

A worm moves forward 3/8 inch every 5 minutes for 1 hour 25 minutes. How far does the worm move in this time? Explain

Answers

Answer:

6 3/8 inches

Step-by-step explanation:

let 'x' = distance in 1 hr, 25 minutes (which is 85 minutes)

(3/8 ÷ 5) = x ÷ 85

cross-multiply:

5x = 255/8

40x = 255

x = 6 3/8

Can someone help me with these two problems

Answers

Answer:

1》Arc ZWX=180+35=215

2》m<0=2×m<R

m<0=2×37

m<0=74

Hope it helps...

explanation is not right answer but I tried...would u give this a like....don't star it tho....I stopped midway....I thought in first question measure meant length of arc...not angle

Anyway first question actual answer = 180+35= 215°

second question answer= 2*37= 74 (The angle subtended by an arc of a circle at its center is twice the angle it subtends anywhere on the circle's circumference)

Step-by-step explanation:

ANSWER IS WRONG SO DONT CHECK

Angle of half circle is 180°

so <WCX + <XCY + <YCZ = 180°

35° + <XCY + 73°= 180°

108° + <XCY= 180°

<XCY= 180-108

<XCY= 72°

<WCR= <XCZ

<WCR= <XCY + <YCZ

<WCR= 72° + 73°= 145°

<ZCR= <WCX

<ZCR = 35°

Length of arc = theeta (angle)/ 360 * 2πr

length of ZWX= <ZCW +<WXC/ 360 * 2π

I stopped here

student were asked to choose their favorite food and 5/6 chose either pizza or tacos if 2/6 of the students chose pizza what fraction chose tacos

Answers

Answer:

3/6 or 1/2

Step-by-step explanation:

the amount that chose pizza = 2/6

5/6 = the amount that chose pizza + the amount that chose tacos

5/6 = 2/6 + the amount that chose tacos

the amount that chose tacos = 5/6 - 2/6

the amount that chose tacos = (5-2)/6

the amount that chose tacos=3/6=1/2

Answer:

3/6

Step-by-step explanation:

PLZ HELP ASAP!!! 9 equals x over 2 + 2 ​

Answers

x=14
just get x alone

Benny went to 36 baseball games this year he went to 40 games last year how many baseball games did Benny go to in total

Answers

Answer:

76

Step-by-step explanation:

36+40=76

Hope this helps!!

Answer:

76 games in total

Step-by-step explanation:

Diego needs rug with an area of 540sq feet what are all the ways to get 540 square feet

Answers

Answer:

260*2

540*1

180*3

135*4

108*5

Step-by-step explanation:

is finding the perimeter of a figure with all sides of equal length easier tgan finding the perimeter of other figures?​

Answers

Answer:

yes, there are fewer numbers to compute.

It's just one length x the number of sides.

Step-by-step explanation:



Subtract y from 5....

Answers

Answer:

5y-y= 5? I don’t know  I’m not totally sure.

Step-by-step explanation:

11. The cost of oranges at a local grocery store is shown in the table below.
Number of
Oranges
3
7
10
12
Total Cost
$1.26
$2.94
$4.20
$5.04
Which of the following represents the unit rate for the oranges?
O A. $1.68 for 1 orange
OB. $0.84 for 1 orange
O C. $1.26 for 1 orange
O D. $0.42 for 1 orange

Answers

Answer:

D. $0.42 for 1 orange

Step-by-step explanation:

Divide the number of oranges by the corresponding total cost.

Ex. 5.04 ÷ 12 = 0.42

Answer: 0.42

Step-by-step explanation: 0.42+0.42+0.42= 1.26

h(x) = 3x + 5
g(x) = 4x – 2
Find h(x) – g(x)

Answers

Answer:

6

Step-by-step explanation:

seshhhhh is that dababy. he valid

56 + 72 = ( + )
help plz

Answers

Answer:

128 = +

Step-by-step explanation:

56 + 72  = 128 (+)

A football stadium holds 5000 people.
On a match day 5 of the stadium is full.
40% of the children are girls.
The ratio of adults to children is 2 : 3
How many of the children attending are boys?

Answers

Answer:

720 boysss

Step-by-step explanation:

Yep thts the answerrr...

2 kg 91 g = __________ g

Answers

Answer:

2091 grams

Step-by-step explanation:

1000 g = 1kg

2*1000 = 2000g + 91g = 2091 g

Answer:

2kg 91 g = _2091_ g

Step-by-step explanation:

Conversion factor: 1 kg = 1000 g

1) kg = g / 1000

2) kg = 2091 / 1000

3) kg = 2.09

A report summarized a survey of 2305 working adults (representative sample of all working adults). The report indicates that 484 of the working adults surveyed said they were very concerned that their job will be automated, outsourced, or otherwise made obsolete in the next five years. Obtain a point estimate for the population proportion of all working adults who very concerned that their job will be automated, outsourced, or otherwise made obsolete in the next five years. Select the correct answer, including appropriate notation.

Answers

Answer:

The point estimate for the population proportion of all working adults who very concerned that their job will be automated, outsourced, or otherwise made obsolete in the next five years is 0.21.

Step-by-step explanation:

Point estimate of a proportion:

The point estimate of a proportion, from a sample, is the sample proportion.

In this question:

2305 working adults, 484 said they were very concerned that their job will be automated, outsourced, or otherwise made obsolete in the next five years. This means that:

[tex]p = \frac{484}{2305} = 0.21[/tex]

The point estimate for the population proportion of all working adults who very concerned that their job will be automated, outsourced, or otherwise made obsolete in the next five years is 0.21.

AB and BC form a right angle at point B. If A=(-3,-1) and B=(4,4), what is the equation of BC
A. X+3y=16
B. 2x+y=12
C. -7x-5y=-48
D. 7x-5=48

Answers

Answer: D. -7x-5y=-48

Step-by-step explanation:

The slope of AB is [tex]\frac{-1-4}{-3-4}=\frac{5}{7}[/tex]. Since perpendicular lines have slopes that are negative reciprocals, the slope of BC is -7/5.

Substituting into point-slope form,

[tex]y-4=-\frac{7}{5}(x-4)\\\\5y-20=-7(x-4)\\\\5y-20=-7x+28\\\\\boxed{-7x-5y=-48}[/tex]

Rename 5/12 and 7/8 using the least common denominator

Answers

Answer:

10/24 and 21/24

Step-by-step explanation:

So the least number that both 12 and 8 will divide into is 24

so 5x2/24 and 7x3/24 so the fractions are 10/24 and 21/24

Answer:

10/24 and 21/24

Step-by-step explanation:

answers for plato test

The owner of a pizza restaurant in France knows that the time customers spend in the restaurant on Saturday evening has mean 90 minutes and standard deviation 15 minutes. He has read that pleasant odors can influence customers, so he spreads a lavender odor throughout the restaurant. Presented are the times, in minutes, for customers on the next Saturday evening.

Answers

Answer:

hello your question is incomplete attached below is the missing part

Question : What is the value of the test statistic

answer : = 5.73

Step-by-step explanation:

Mean value = 90 minutes

std = 15 minutes

Calculate the test statistic

mean value  of given data = ∑ x / n = 105.7

since the value of standard deviation is given we will assume a normal distribution

Hence we will apply  z test statistics

z = mean value of given data - Mean value / 15 √30

   = ( 105.7 - 90 )  / 15 √30

  = 5.73

What is the volume of the square pyramid

Answers

Answer:

V≈2933.33

Step-by-step explanation:

(explanation in picture)

Please brainliest!

Which type of parent function does the equation f (x) = a represent?

Answers

Parent functions are the base function of a family function. [tex]f(x) = \sqrt x[/tex] is the parent function of the square root function

Given that:

[tex]f(x) = \sqrt x[/tex]

The parent function of a cube root function is:

[tex]f(x) = x^3[/tex]

The parent function of a reciprocal function is:

[tex]f(x) = \frac 1x[/tex]

The parent function of an absolute function is:

[tex]f(x) = |x|[/tex]

The parent function of a square root function is:

[tex]f(x) = \sqrt x[/tex]

By comparing the above parent functions to [tex]f(x) = \sqrt x[/tex], we can conclude that [tex]f(x) = \sqrt x[/tex] is the parent function of a square root function.

Hence, (d) is true

Read more about parent functions at:

https://brainly.com/question/17939507

he response times for a random sample of 40 medical emergencies were tabulated. The sample mean is 13.25 minutes. The population standard deviation is believed to be 3.2 minutes. The EMS director wants to perform a hypothesis test, with a .05 level of significance, to determine whether the service goal of 12 minutes or less is being achieved.

Answers

Answer:

The calculated value Z = 2.5 > 1.96 at 0.05 level of significance

The null hypothesis is rejected

The Alternative hypothesis is rejected

The EMS director wants to service goal of 12 minutes or less is being achieved

Step-by-step explanation:

Step(i):-

Given that the size of the random sample = 40

Given that the mean of the sample (x ⁻) = 13.25

Given that the standard deviation of the Population = 3.2 minutes

Level of significance = 0.05

The mean of the Population (μ) = 12

Step(ii):-

Null hypothesis:-H₀: (μ) = 12

Alternative Hypothesis: H₁ : μ < 12

Test statistic

                  [tex]Z = \frac{x^{-}-mean }{\frac{S.D}{\sqrt{n} } }[/tex]

                  [tex]Z = \frac{13.25-12 }{\frac{3.2}{\sqrt{40} } }[/tex]

                  Z = 2.5

The tabulated value Z₀.₀₅ = 1.96

The calculated value Z = 2.5 > 1.96 at 0.05 level of significance

The null hypothesis is rejected

The Alternative hypothesis is rejected

Final answer:-

The EMS director wants to service goal of 12 minutes or less is being achieved

A door is 8 feet tall and 4 feet wide. What is the area?

Answers

Answer:

32

Step-by-step explanation:

a door is rectangular in shape

area = length × breadth

8 × 4

32

answer:

The area of the door is 32 square ft

Daria rolls a number cube. What is the probability that it will land on a 1?

Answers

Answer:

1 out of 6 or 16.7%

Step-by-step explanation:

def one out of 6 or 16.7%

Can anyone help? The question is at the bottom

Answers

Answer:

Step-by-step explanation:

Answer:

24 is awnser

Step-by-step explanation:

Pls mark me as brainliest

Almost all employees working for financial companies in New York City receive large bonuses at the end of the year. A sample of 62 employees selected from financial companies in New York City showed that they received an average bonus of $47,000 last year with a standard deviation of $15,000. Construct a 90% confidence interval for the average bonus that all employees working for financial companies in New York City received last year.

Answers

Answer:

The 90% confidence interval for the average bonus that all employees working for financial companies in New York City received last year is between $43,819 and $50,181

Step-by-step explanation:

We have the standard deviation for the sample, which means that the t-distribution is used to solve this question.

T interval

The first step to solve this problem is finding how many degrees of freedom, we have. This is the sample size subtracted by 1. So

df = 62 - 1 = 61

90% confidence interval

Now, we have to find a value of T, which is found looking at the t table, with 61 degrees of freedom(y-axis) and a confidence level of [tex]1 - \frac{1 - 0.9}{2} = 0.95[/tex]. So we have T = 1.67

The margin of error is:

[tex]M = T\frac{s}{\sqrt{n}} = 1.67\frac{15000}{\sqrt{62}} = 3181[/tex]

In which s is the standard deviation of the sample and n is the size of the sample.

The lower end of the interval is the sample mean subtracted by M. So it is 47000 - 3181 = $43,819

The upper end of the interval is the sample mean added to M. So it is 47000 + 3181 = $50,181

The 90% confidence interval for the average bonus that all employees working for financial companies in New York City received last year is between $43,819 and $50,181

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