Suppose we are interested in bidding on a piece of land and we know one other bidder is interested. The seller announced that th
1 answer:
Answer:
a. 0.32
b. 0,72
c. $13200
d. No
Step-by-step explanation:
Suppose we are interested in bidding on a piece of land and we know one other bidder is interested. The seller announced that the highest bid in excess of $10,400 will be accepted. Assume that the competitor's bid x is a random variable that is uniformly distributed between $10,400 and $14,600.a. Suppose you bid $12,000. What is the probability that your bid will be accepted (to 2 decimals)?b. Suppose you bid $14,000. What is the probability that your bid will be accepted (to 2 decimals)?c. What amount should you bid to maximize the probability that you get the property (in dollars)?d. Suppose that you know someone is willing to pay you $16,000 for the property. You are considering bidding the amount shown in part (c) but a friend suggests you bid $13,200. If your objective is to maximize the expected profit, what is your bid? (Options: 1. Stay with the bid in part (c) or 2. Bid $13,200 to maximize profit)What is the expected profit for this bid (in dollars)?
a=10400
b=14600
probability density is gotten by inverse of difference in boundaries
=f(y)
0.0002
a. for probability x<12000
(0.0002) from 12000 to 10400
0.32
b. probability that y x<14000
integrate f(y)dy
between 14000 and 10400
0.0002x
0.72
c.
Bid at most 13200 to be sure that it will be at maximum
d. No, if the house is sold for 16000 you could make a profit of $2800, because the house is $13200. You will run at loss is you bid less
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Answer:
According to the rule of 72, the doubling time for this interest rate is 8 years.
The exact doubling time of this amount is 8.04 years.
Step-by-step explanation:
Sometimes, the compound interest formula is quite complex to be solved, so the result can be estimated by the rule of 72.
By the rule of 72, we have that the doubling time D is given by:
The interest rate is in %.
In our exercise, the interest rate is 9%. So, by the rule of 72:
.
According to the rule of 72, the doubling time for this interest rate is 8 years.
Exact answer:
The exact answer is going to be found using the compound interest formula.
In which A is the amount of money, P is the principal(the initial sum of money), r is the interest rate(as a decimal value), n is the number of times that interest is compounded per unit t and t is the time the money is invested or borrowed for.
So, for this exercise, we have:
We want to find the doubling time, that is, the time in which the amount is double the initial amount, double the principal.
is double the initial amount, double the principal.
The interest is compounded anually, so
Now, we apply the following log propriety:
So:
The exact doubling time of this amount is 8.04 years.
Answer:
The p-value is 0.0229
Step-by-step explanation:
With we have an upper-tail alternative. Because the p-value is defined as the probability of getting a value at least as extreme as the value observed. The observed value is given by the test statistic z = 1.997 which comes from a standard normal distribution. Therefore, we compute the p-value in the following way P(Z > 1.997) = 0.0229, i.e., the p-value is 0.0229