Answer:
a) 3/64 = 0.046 (4.6%)
b) 63/64 = 0.9843 (98.43%)
c) 1/64 = 0.015 (1.5%)
d) 1/4 = 0.25 (25%)
Step-by-step explanation:
in order to verify that the f(x) is a probability mass function , then it should comply the requirement that the sum of probabilities over the entire space of x is equal to 1. Then
∑f(x)*Δx = 1
if f(x)=(3/4)(1/4)^x , x = 0, 1, 2, ...
then Δx=1 and
∑f(x) = (3/4)∑(1/4)^x = (3/4)* [ 1/(1-1/4)] = (3/4)*(4/3) = 1
then f represents a probability mass function
a) P(X = 2)= f(x=2) = (3/4)(1/4)^2 = 3/64 = 0.046 (4.6%)
b) P(X ≤ 2) = ∑f(x) = f(x=0)+ f(x=1) + f(x=2) = (3/4) + (3/4)(1/4) + 3/64 = 63/64 = 0.9843 (98.43%)
c) P(X > 2)= 1- P(X ≤ 2) = 1 - 63/64 = 1/64 = 0.015 (1.5%)
d) P(X ≥ 1) = 1 - P(X < 1) = 1 - f(x=0) = 1- 3/4 = 1/4 = 0.25 (25%)
Answer:
C) $10,000 invested at 6.7% compounded quarterly over 7 years yields the greater return.
Step-by-step explanation:
-We determine the effective interest rate in both scenarios and use it to calculate the investment's value after 7 years.
#Given n=7yrs, P=$10,000 and i=6.6% compounded monthly:
#Given n=7rs, P=10000, i=6.7%
Hence, the investment has the largest value($15,921.75) when the interest rate is compounded quarterly.
<span>The area of mathematics that deals with points, lines, shapes and space. Plane Geometry is about flat shapes like lines, circles and triangles. Solid Geometry is about solid (3-dimensional) shapes like spheres and cubes.</span>
