Question

Two towns, Besiktas and Sariyer are going to raise a fund together to build a new...

Two towns, Besiktas and Sariyer are going to raise a fund together to build a new public library. Suppose Besiktas will raise B million Turkish Liras and Sariyer will raise S million Turkish Liras. B has exponential distribution with rate 1.1 and S has exponential distribution with rate 1.7. Suppose B and S are independent. The new library will be built if they can raise 4 million Turkish Liras or more. What’s the probability that Besiktas will raise less than 2 million Turkish Liras given that the library can be built?  (P(B<2 | B+S≥4)=?)

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Spl Contido the folloesing regions ६ (4,0) BAS: 4 S=4-B mathematically, we Can woile A as A: S (BS) S?0.7 if Boy and {cas S 22 (4,0) This region is {Be2, Bt Say? =c, say A (4,0) B = 2 S-4-B : mathematically, we can write ca (B.S) Io<BC 2 S24-0 .s) |3 and ۹-۱ و دوات (۸۱) *[ و(۱ ) و - [(24)لاہا) ع -5) - e -ال e (2) ( - ) e با :: ۲( 516 2 ) (۷-ها) (2) - ما : ) (۷۰*۵۰۰ ۱۰۵۷ :14 S e el (2.4-10 du 2 è 9.6 (1.4) up interna (pousa]?- és (24 -1) 1.44 P(BC2 | Bts 24) P(B<2, Bts 24) PCB+524) - ė 96 (229,-

Add a comment
Know the answer?
Add Answer to:
Two towns, Besiktas and Sariyer are going to raise a fund together to build a new...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Two towns, Besiktas and Sariyer are going to raise a fund together to build a new...

    Two towns, Besiktas and Sariyer are going to raise a fund together to build a new public library. Suppose Besiktas will raise B million Turkish Liras and Sariyer will raise S million Turkish Liras. B has exponential distribution with rate 1 and S has exponential distribution with rate 2.4. Suppose B and S are independent. The new library will be built if they can raise 4 million Turkish Liras or more. What's the probability that Besiktas will raise less than...

  • 25) Luther Industries needs to raise $25 million to fund a new office complex. The company...

    25) Luther Industries needs to raise $25 million to fund a new office complex. The company plans on issuing ten-year bonds with a face value of $1,000 and a coupon rate of 6.0% (annual payments). The following table summarizes the YTM for similar ten-year corporate bonds of various credit ratings: 25) Luther Industries needs to raise $25 million to fund a new office complex. The company plans on issuing ten-year bonds with a face value of $1,000 and a coupon...

  • You plan to invest in the Kish Hedge Fund, which has total capital of $500 million invested in fi...

    You plan to invest in the Kish Hedge Fund, which has total capital of $500 million invested in five stocks: Stock Investment Stock's Beta Coefficient A $160 million 0.5 B 120 million 2.2 C 80 million 4.5 D 80 million 1.0 E 60 million 3.4 Kish's beta coefficient can be found as a weighted average of its stocks' betas. The risk-free rate is 3%, and you believe the following probability distribution for future market returns is realistic: Probability Market Return...

  • You plan to invest in the Kish Hedge Fund, which has total capital of $500 million...

    You plan to invest in the Kish Hedge Fund, which has total capital of $500 million invested in five stocks: Stock Investment Stock's Beta Coefficient A $160 million 0.8 B 120 million 1.6 C 80 million 1.7 D 80 million 1.0 E 60 million 1.9 Kish's beta coefficient can be found as a weighted average of its stocks' betas. The risk-free rate is 6%, and you believe the following probability distribution for future market returns is realistic: Probability Market Return...

  • The Great White Hall: Flatland Views city council has advertised for proposals to build a new...

    The Great White Hall: Flatland Views city council has advertised for proposals to build a new community center, a library and a theatre but the city council cannot agree on how to evaluate the submitted proposals. The request for proposal (RFP) specified that respondents had to meet certain basic needs, although optional items could be included. The RFP also asked that each respondent calculate a benefit/cost (B/C) ratio using a discount rate of 12%. What are the options for analyzing...

  • You plan to invest in the Kish Hedge Fund, which has total capital of R500 million...

    You plan to invest in the Kish Hedge Fund, which has total capital of R500 million invested in five stocks: Stock Investment Stock's Beta Coefficient A 160 million 0.5 B 120 million 1.2 C 80 million 1.8 D 80 million 1.0 E 60 million 1.6 Kish's beta coefficient can be found as a weighted average of its stocks' betas. The risk-free rate is 6%, and you believe the following probability distribution for future market returns is realistic: Probability Market Return...

  • Z&B Paints. future growth. IPO Question Z&B Paints, Inc., is going public next month to raise...

    Z&B Paints. future growth. IPO Question Z&B Paints, Inc., is going public next month to raise the funds needed to finance the company's future growth. The company estimates that it needs $45 million to support its expected growth. The underwriting fees charged by the selected investment banking firm are based on the schedule provided in the following table: Bonds Straight Convertible Equity Seasoned Issues 13.30% Issue Size ($ million) Under 10.0 IPOS 8.80% 17.00% 4.40% 2.80% 10.0 -19.9 8.70% 8.70%...

  • Suppose your company needs $10 million to build a new assembly line. Your target det equity...

    Suppose your company needs $10 million to build a new assembly line. Your target det equity ratio is 3. The station cost for new equity is 6 percent and the flotion cost for debt is 3 percent. Your boss has decided to fund the project by borrowing money because the flotion costs are lower and the needed funds are relatively smo .. What is your company's weighted average flotation cost assuming allegitymised externaly? Do not found intermediate calculations and enter...

  • 24. Project Evaluation This is a comprehensive project evaluation problem bringing together much of what you...

    24. Project Evaluation This is a comprehensive project evaluation problem bringing together much of what you have learned in this and previous chapters. Suppose you have been hired as a financial consultant to Defense Electronics, Inc. (DEI), a large, publicly traded firm that is the market share leader in radar detection systems (RDS). The company is looking at setting up a manufacturing plant overseas to produce a new line of RDSs. This will be a 5-year project. The company bought...

  • Suppose your company needs $14 million to build a new assembly line. Your target debt-equity ratio...

    Suppose your company needs $14 million to build a new assembly line. Your target debt-equity ratio is .5. The flotation cost for new equity is 10 percent and the flotation cost for debt is 7 percent. Your boss has decided to fund the project by borrowing money because the flotation costs are lower and the needed funds are relatively small. a. What is your company’s weighted average flotation cost, assuming all equity is raised externally? (Do not round intermediate calculations...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT