1. Suppose you make an investment of $10,000. This first year the investment returns 9%, the second year it returns 5%, and the third year in returns 4%. How much would this investment be worth, assuming no withdrawals are made?
2. How much would you need to deposit every month in an account paying 9% a year to accumulate by $10,000,000 by age 75 beginning at age 30?
2. The following data give the number of daily and Sunday newspapers published in each of the 13 western states during 2000:
7, 16, 92, 29, 6, 12, 11, 8, 18, 19, 6, 24, 9
a. Calculate the mean, median, mode and standard deviation range for these data.
b. Do these data contain an outlier? If so, drop the outlier and recalculate all the measures. Which of these measures changes by a larger amount when you drop the outlier?
b. Which is the better measure of center for these data, the mean or the median? Explain.
4. You deposit $10,000 in a bank paying 16% interest. How much will you have at the end of 5 years if interest is compounded (a) annually?(b)semi-annually? (c) quarterly? (d) monthly? (e) daily?
5. Suppose the settlement date of a bond you purchased is November 30, 2001; the maturity date of the bond is December 31, 2028; the bond has a coupon rate of 6.25% and interest is paid semi-annually; the face value of the bond is $1000; and actual days per month/year is used for the day-count basis (not 30/360). Suppose investors currently want an 8.3% return for this type of bond. What price should they be willing to pay?

Solution Summary

The solution solves several statistical problems pertaining to investments.

1. A financial manager evaluating a new investment opportunity should assess:
only the cash requirements of the project.
the risks and returns of the investment without regard to other investments.
how the project compares with the average project of the firm.
the resources that the opportunity will consume.

In a completely randomized design, 12 experimental units were used for first treatment, 15 for the second treatment, and 20 for the third treatment. Complete the following analysis of variance at 0.05 level of significant difference between the treatment.
Source of variation Sum of Squares Degree of freedom Mean S

Learning objectives: distinguish between discrete and continuous random variable; compute statistics about random variable; compute statistics about a function of a random variable; compute statistics about the sum of a linear composite of random variables; identify which type of distribution a given random variable is most like

I need help (step-by-step) with the following example exercises (please see attached). These examples are used to help us prepare for the the types of problems that will be on our final. I am not good in math (especially statistics) and hope that someone can help break these answers down in laymens terms.
Thanks,
E

Although the rules of probability are just basic facts about percents or proportions, we need to be able to use the language of events and their probabilities.
Choose an American at random. Define two events:
A) = the person chosen is obese
B) the person chosen is overweight, but not obese
According to the National Cente

1. Ten observations of X are
67 6 7 35 78 28 74 5 9 37
a) Find the order statistics
b) Find the median and 80th percentile of the sample
c) Determine the first and third quartiles of the sample
2. Let Y1statistics of 5 independent observations of an exponential distribution with

About 30% of adults in United States have college degree.
(probability that person has college degree is p = 0.30).
If N adults are randomly selected, find probabilities that
1) exactly X out of selected N adults have college degree
2) less than X out of selected N adults have college degree
3) greater than X out of sel

1) Are the different forms of consumer instalment credit in the following table highly correlated? Create your table in Word.
2) A researcher is asked to determine whether or not a productivity objective (in dollars) of better than $75,000 per employee is possible. A productivity test is done involving 20 employees. What co