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  • Problem 1B: You want to invest money in real estate. The following table summarizes the payoffs...

    Problem 1B: You want to invest money in real estate. The following table summarizes the payoffs of the investment in good or bad economic situations. States of nature   Actions Good Poor Apartment building $ 50,000 $ 30,000 Office building $ 100,000 - $40,000 Warehouse $ 30,000 $ 10,000 You estimate that the probabilities of having good or bad economic situations...

  • math 115 statistics

    The overhead reach distances of adult females are normally distributed with a mean of 197.5cm and a standard deviation of 8.3cm.a. Find the probability that an individual distance is greater than 207.50 cm. b. Find the probability that the mean for 25 randomly selected distances is greater than  c. Why can the normal distribution be used in part (b), even though the...

  • A- What is the present equivalent of the following cash flow? Assume interest rate is 8%....

    A- What is the present equivalent of the following cash flow? Assume interest rate is 8%. B- Imagine you have some rich cousin who looks down at you. She thinks you are incapable of managing your own affairs and talks you into supplementing some form of future retirement income through some individual retirement plan. You are supposed to retire in...

  • Show Me the Money One of the key decisions an employer must make is the level...

    Show Me the Money One of the key decisions an employer must make is the level of compensation it pays to its employees. In fact, agency theory focuses on the divergent interests and goals of an organization's stakeholders and the ways that employee compensation can be used to align these interests and goals. In this case, we revisit Werner Marketing...

  • You plan to start your own business after completing the MBA. You have always wanted to...

    You plan to start your own business after completing the MBA. You have always wanted to open a restaurant and have started to save for this by using the remainder of your pension fund (currently at R800 000) and making monthly contributions into an annuity account for the remaining value. If you feel that R2 000 000 will be enough...

  • Todd and Jessalyn are 25, newly married, and ready to embark on the journey of life....

    Todd and Jessalyn are 25, newly married, and ready to embark on the journey of life. They both plan to retire 45 years from today. Because their budget seems tight right now, they had been thinking that they would wait at least 10 years and then start investing $2400 per year to prepare for retirement. Jessalyn just told Todd, though,...

  • A company offers prizes to their employees depending on the time it takes them to complete...

    A company offers prizes to their employees depending on the time it takes them to complete an assignment. Employees receive a 300, 200 or 100 euros gratification if the assignment is completed in less than 10 hours, between 10 and 15 hours or in more than 15 hours, respectively. The probability of completing the task in each of these cases...

  • Question 1 You have just purchased a municipal bond with a $10,000 par value for $9,500....

    Question 1 You have just purchased a municipal bond with a $10,000 par value for $9,500. You purchased it immediately after the previous owner received a semiannual interest payment. The bond rate is 6.6% per year payable semiannually. You plan to hold the bond for 6 years, selling the bond immediately after you receive the interest payment. If your desired...

  • 1.) Under Statement of Financial Accounting Concepts No. 8, which of the following relates to both...

    1.) Under Statement of Financial Accounting Concepts No. 8, which of the following relates to both relevance and faithful representation? A.)Materiality B.) Neutrality C.) Timeliness D.) Predictive value 2.) An item is considered material if: The cost of reporting the item is greater than its benefits It doesn’t cost a lot of money. it is of a tangible good.

  • Analyze the conditional probability P (B/A), for each scenario given in the first column and thus...

    Analyze the conditional probability P (B/A), for each scenario given in the first column and thus dlassify them as dependent and independent events under 2 column headings. Scenario 1 :'A, be the event that 70% of the children like chocolate cupcakes and B' be the event that 25% like lemon cupcakes, 30% of children like both. Scenario 2 :B' be...

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