worksheet6 - more detailed life table 3. (extra) Suppose...

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MA 1002 Worksheet 6 Due Date: October 21, 2009 Print Name: Signature: ID #: Instructor/Section: Instructions: Explain each step using the conventions from class. Please mark solutions clearly. You will not receive full credit for a correct answer without explanation. 1. (50 points) Solve the following linear programming problem graphically: You have 12,000 to invest and three diFerent assets to choose from. A bond has a ±xed 7% return, a CD has 8% return, and a mutual fund 12% projected return. To minimize your risk, you decide not to invest any more than $2,000 in the mutual fund. You need to invest at least three times as much in the bond as in the CD for tax considerations. What is the optimal way to invest in the three assets? You can check your result by using the “Solver”-tool in Excel. 2. (50 points) Answer the life table questions from the class handout using the attached,
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Unformatted text preview: more detailed life table 3. (extra) Suppose you are standing at an intersection in Manhattan, and you want to go home. But temporarily, you have forgotten where you are, and so you try to perform a random walk: With equal probability, you start walking north, west, south, or east to the next intersection. However, you are not that much lost that you forget from where you came, so if you decide to go north in one step, in the next step you will only go north, east or west, but not back south. (a) Simulate a few random walks of length 10. Measure the distance from the starting point. (b) How many diFerent random walks of length n are there? (c) Can you nd an estimate for the average distance from the starting point with a random walk of length n ? (d) Do you think you will ever get home? Please bring a computer to class next Wednesday!!!...
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This note was uploaded on 12/09/2009 for the course MA 1002 taught by Professor N/a during the Spring '09 term at NYU Poly.

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