1) Since this is a Continuously Compounded operation in a 10 yrs period, then we can write out the following equation:
2) Plugging into the equation the given data and since Otto is 20 yrs old and he plans to get $4,000 in ten years, we can write out:
3) Thus the rate Otto needs is
Note that since the 0.1386 the six here is greater than 5 then we can round up to the next thousandth, in this case: 0.139. For the 0.1386 is closer to 0.139 (0.004) than to 0.138 (0.006).
Or 13.9%
Answer:
μ ≈ 2.33
σ ≈ 1.25
Step-by-step explanation:
Each person has equal probability of ⅓.
The mean is the expected value:
μ = E(X) = ∑ X P(X)
μ = (1) (⅓) + (2) (⅓) + (4) (⅓)
μ = ⁷/₃
The standard deviation is:
σ² = ∑ (X−μ)² P(X)
σ² = (1 − ⁷/₃)² (⅓) + (2 − ⁷/₃)² (⅓) + (4 − ⁷/₃)² (⅓)
σ² = ¹⁴/₉
σ ≈ 1.25
Answer:
z=14.73
p=0.000
for 99% confidence level the null hypothesis is rejected, thus majority of us adults would not bothered if the NSA collected personal records.
Step-by-step explanation:
: Half of US adults would not bothered if the NSA collect records of personal telephone calls
: Majority of the adults would not bothered if the NSA collect records of personal telephone calls
According to the sample, z-value can be found using the formula:
z= where
Putting these numbers in the formula,
z=14.73 and corresponding p value is p≈0.000
Since p<0.01, for 99% confidence level we reject the null hypothesis, thus majority of us adults would not bothered if the NSA collected personal records.