Answer:
(a) E(X) = 3
(b) Var(X) = 12.1067
Explanation:
(a) E[X]
E[X]T = E[X]T=A + E[X]T=B + E[X]T=C
= (2.6 + 3 + 3.4)/3
= 2.6 (1/3) + 3(1/3) + 3.4(1/3)
= 2.6/3 + 1 + 3.4/3
= 3
(b) Var (X) = E[X²]−(E[X])²
Recall that if Y ∼ Pois(λ), then E[Y 2] = λ+λ2. This implies that
E[X²] = [(2.6 + 2.6²) + (3 + 3²) + (3.4 + 3.4²)]/3
= (9.36 + 12 + 14.96)/3
= 36.32/3
= 12.1067
Var(X) = E[X²]−(E[X])²
= 12 - 3²
= 12.1067 - 9
= 3.1067
Answer:
$77.34
Explanation:
The computation of the current stock price is shown below:
But before that following calculations need to be done
EPS for year 2 = Dividend at year 2 ÷ Payout Ratio
= $1.96 ÷ 0.40
= $4.90
Now the price at year 2 is
Price at year 2 ÷ EPS at year 2 = PE ratio
Price at year 2 ÷ $4.90 = 18.95
Price at year 2 = $92.855
Now finally the current stock price is
= Dividend at year 1 ÷ (1 + rate of interest) + Dividend at year 2 ÷ (1 + rate of interest)^2 + Price at year 2 ÷ (1 + rate of interest)^2
= $1.81 ÷ 1.119 + $1.96 ÷ 1.119^2 + $92.855 ÷ 1.119^2
= $77.34
Answer:
The project never pays back
Explanation:
The break even point in cash is a point where the minimum revenue amount of the firm arise from sales that are needed to generate the business by having the positive cash flows
hence, the break even point in cash represents that the project will never pays back the invested amount
Therefore all the other options are wrong
You can describe stretch goals as goals placed above the ones you need or strive to achieve, as a secondary objective. Think of achieving a stretch goal as doing even better than expected.
