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Loan Work Outs
Part 1a: Probability & Simulation
Video introduction by
Prof. Christopher Lamoureux Department of Finance University of Arizona.
Mathematics for Business
Please do and submit to your instructor on the due date, in class.
Reference: Thomas Bayes, `An Essay Toward Solving a Problem in the Doctrine of Chances," Phil. Trans.
Royal Soc. London, vol.~53 (1763), pp.~370-418.
An inexpensive blood test ca
2006 by The Arizona Board of Regents
for The University of Arizona.
All rights reserved.
Business Mathematics I
ANSWERS FOR FINAL EXAM STUDY GUIDE
1. (a) (i)
(b) (i) 0.55 (ii) 0.3 (iii) 0.15 (iv) 0.85 (v) 0.35 (vi) 0.35 (vii) 0.6 (viii) 0.
Business Mathematics I Homework 2
We, the undersigned, affirm that each of us participated fully and equally in the completion of this assignment and that the work contained herein is original. Furthermore, we acknowledge that sanctions will be impo
We start with $3,200.00 that is invested at an annual rate of 5.45%, compounded n times per year.
Mathematics for Business Decis
Published and Distribute The Mathematical Association o 2007 by The Arizona Board of The University
ARE YOU READY FOR PART 1 OF MATHEMATICS FOR BUSEINSSS DECISIONS?
Here is an exercise that uses some of the basic computer skills which you need before you start Part 1of Mathematics for Business Decisions. Follow the directions, using the most effici
Records of the number of sales per day and the daily gross sales have been kept for four years. Since the business is open 5 days per week for 50 non-holiday weeks per year, there are 1,000 daily records.
Mathematics for Business Decisio
2006 by The Arizona Board of Regents for The University of Arizona. All rights reserved.
Business Mathematics I
FINAL EXAM STUDY GUIDE
1. Let B be the event that a student reads Business Week and let F be the event that a student reads Fortune. Suppose t
MATH 115A HW 5 Conditional Probability
1 / 1 point
Weather records show that on a given type of day, the probability of rain is 0.30, the probability
of strong winds is 0.41, and the probability of either rain or strong winds is 0.44. If you ge
RLC Resonant Circuits
April 20, 2013
Capacitors and Inductors
There is a lot of inconsistency when it comes to dealing with reactances of complex components. The format
followed in this document is as follows. The impedance, Z, of a com
Objective: layout the problem and the objective? What are our motivations? Money
motivations? Summarize this and clearly layout the objective of the project.
The ultimate goal of this project is to decide whether to foreclose or attempt a wor
These values yield the probability of a borrower having three years
experience, a Bachelors Degree, and the economy state in a recession
given that the loan work out was successful (or was a failure). We are
able to calculate these values because we al
E(Zy) gives the amount of money that Acadia Bank could receive from a future loan work out
attempt with a borrower who has three (Y) years of experience. The value, $2,815,000.00 is larger than
the foreclosure value for our bor
1. Borrower John Smith (Data to question 1 on excel sheet also)
2. Data Insight
According to the numbers above and presented on our Excel sheet, Cajun bank has a
much lower success rate then BR and DuPont bank. The failure rate of all three banks is very
1. Compute the expected value of a loan work out for your teams particular borrowers
loan. Use only the full and default values of his or her loan, and the probabilities of a
successful or failed work out, based on the complete set of bank records. Does t
MATH 115a, PROJECT 1
1. Compute the expected value of a loan work out for your teams particular borrowers loan.
Use only the full and default values of his or her loan, and the probabilities of a successful or
failed work out, bas
MATH 115A Notes on Random Variables
Since the number, X, that is associated with outcomes takes on different values by
chance, it is called a random variable.
We let P(X=x) be the probability that th
MATH 115A / MATH 173 July 11, 2011 NOTES
Let X= sum of all the dice
Event: a collection of outcomes
If all outcomes in the sample space are equally likely, then the probability of an event will be:
P/E = # outcomes in E/ # outcomes in S
Probability of eve
ACADIA BANK LOAN RECORDS Acadia Bank has records of 8,226 business loans in which work out agreements were made. These come from three banks; BR, Cajun, and
DuPont; whose merger formed Acadia. The three former banks each kept records on different asp
SIMULATION OF ATM QUEUES
This worksheet simulates ATM queues for periods of one hour. It is assumed the rate of service at each ATM is as used in the Class Project, Managing ATM Queues. Enter values in Cells B18, D18, and H18. The Mean Time Between A
ACADIA BANK LOAN RECORDS
Mathematics for Business Decision
Acadia Bank has records of 8,226 business loans in which work
out agreements were made. These come from three banks; BR, Cajun, and DuPont; whose merger formed Acadia. The three former bank
Mathematics for Busin
Sport Utility Vehicles REPAIR COSTS IN LOW-SPEED COLLISIONS
An insurance company has gathered data on the cost of repairing various models of sport utility vehicles that were damaged in low-speed, front-end collisions. The veh
Binomial Random Variable n = 4 and p = 0.6
x 0 1 2 3 4 Sum
p.m.f. 0.0256 0.1536 0.3456 0.3456 0.1296 1.0000
c.d.f. 0.0256 0.1792 0.5248 0.8704 1
Mathematics for Business Decisions, Part 1a Release 1.53a, 2007 Published and Distributed by The Math
We simulate 4,000 sets of forms, with 5 forms per set. On each form, the probability of 0 coding errors is 0.90, the probability of 1 coding error is 0.08, and the probability of 2 coding errors is 0.02. Let be the random variable that
SIMULATED COIN TOSSING Excel simulates 5,000 sets of three coin tosses each. The number of heads in each set is displayed, and these 5,000 numbers are averaged. Pressing F9 will run a new simulation. The simulation requires two types of human input.
Mathematics for Business Decisions, Part 1a Release 1.53a, 2007 Published and Distributed by The Mathematical Association of America
2007 by The Arizona Board of Regents for The University of Arizona. All rights reserved.
CREATING A WORD DOCUMENT