Financial Economics V 3025 Rajiv Sethi Phone: 854 5140 Problem Set 1: Solutions Fall 2009 5B Lehman [email protected]
1. (a) The investment rate is 0:51962 = 0:05481 = 5:481%: 9:48038 (b) If bidder FUN had chosen to bid 5.6% instead of 5.0%, the market c
Type equation here.1. Henry is a typical New Yorker. Each month he has $120 to spend on
transportation. The price of a subway ride is $2 and the price of an average cab ride is $10. You may assume that the goods are not perfect complements. Given these pr
Financial Economics
V 3025 Rajiv Sethi Phone: 854 5140 Midterm Exam
Fall 2009 5B Lehman [email protected]
1. An investor with $7000 in her account decides to sell short 200 shares of an asset that is currently priced at $40 per share. What does her balan
Homework 10_solution 1. Sheila is endowed with 15 jars of peanut butter (x) and 8 jars of jelly (y) and Bruce is endowed with 9 jars of peanut butter and 10 jars of jelly. Sheila's utility function is US(x,y) = xSyS and Bruce's is UB(x,y) = xB yB. a) What
Financial Economics V 3025 Rajiv Sethi Phone: 854 5140 Problem Set 4 Solutions 1. If the current yields for 5 and 10 year US Treasury bonds are 2.16% and 3.35% respectively then (assuming that these yields correspond to zero coupon bonds) their current pr
Financial Economics
V 3025 Rajiv Sethi Phone: 854 5140 Midterm Exam: Solutions
Fall 2009 5B Lehman [email protected]
1. An investor with $7000 in her account decides to sell short 200 shares of an asset that is currently priced at $40 per share. What doe
Homework 6 1. In the game of Life the first choice that a player has to make is whether or not he wants to go to college or if he wants to begin his career immediately. If he begins his career immediately then he will earn $36,000 for sure. If he chooses
Homework 2
Intermediate Microeconomics
Solution
1. On Monday the price of a slice of pizza is $2 and a medium coke is $1. At these prices Jane spends her $30 of lunch money to purchase 11 slices of pizza and 8 cokes for her kids. On Friday the prices of p
W1105.002 Principles of Economics Fall 2007
Sample Midterm
This Exam is composed of two sections. Make sure you complete both. Student Name _ Section 1: Multiple Choice Questions Section 2: Definitions Section 3: Exercises Total UNI _ /20 /12 /38 /70
1
Se
SIEO 3600 Introduction to Probability and Statistics Prof. Mariana Olvera-Cravioto
Assignment #2 January 31, 2009 Page 1 of 2
Assignment #2 due February 6th, 2009
1. Use the following table to find the quartiles of the average annual pay in the specified
1. Suppose the production function for aluminum is given by Q = L8 E 8 K 2 where L is the amount of labor hired, E is the amount of energy consumed and K is the amount of capital used. Suppose that the price of energy is 1, the wage rate is 3 and the pric
SIEO 3600 Introduction to Probability and Statistics Prof. Mariana Olvera-Cravioto
Assignment #1 January 26, 2009 Page 1 of 2
Assignment #1 due January 30th, 2008
1. The following is a sample of prices, rounded to the nearest cent, charged per gallon of s
Introduction to Mathematical Programming IEOR 3606, Prof. Maria Chudnovky
833 Mudd Tu&Th 2:40 3:55
HOMEWORK 4- SOLUTIO 29-09-2008
1. EXERCISE 1 P. 301 P1 Find the dual of the following LP; Primal:
max z = 2 x1 + x 2 s.t - x1 + x 2 1 - x + x2 3 x1 - 2 x 2
c 2017 by Karl Sigman
Copyright
1
Some commonly used discrete probability distributions
Here we give a list of several commonly used probability distributions defined on the
integers Z or some subset of Z such as the non-negative integers or a finite sub
SIEO 3600: HMWK 5
1. For a standard unit normal Z compute by using the Normal CDF Table Provided
(as PDF file):
(a)
(b)
(c)
(d)
(e)
P (Z > 1.5)
P (Z 1.8)
P (1.5 < Z 1.5) = P (|Z| < 1.5)
P (1.8 < Z < 1.2)
P (Z > 0.5, Z 1.2).
2. The Diastolic Blood Pressure
IEOR 3600: HMWK 1. Professor K. Sigman
1
Review: Not to be turned in for credit (solutions will be
posted soon)
1. Given a constant > 0, let
f (x) =
ex ,
0,
if x 0;
otherwise.
Compute the following:
(a) 0x f (u)du and
R
(b) 0 xf (x)dx
R
R
0
f (x)dx
R 2
0
IEOR 3600: HMWK 3
1. Suppose that apriori we do not know the proportion p of voters who will vote for
candidate A (versus candidate B), but that when we randomly selected five voters,
exactly 3 said they would vote for A. Find the value of p that maximize
IEOR 3600: HMWK 4
1. A company makes boxes of various sizes as follows: The length (L) is a rv with
probability mass function P (L = 2) = 0.3, P (L = 4) = 0.7. The width (W) is
a rv with probability mass function P (W = 3) = 0.3, P (W = 4) = 0.4, P (W =
5
IEOR 3600, HMWK 2, Professor Sigman
Recall that there are several notations used in books to denote the complement of a
set. For a set A , all three of these denote the complement of A: A, A0 , Ac . The
complement is defined by cfw_w : w
/ A. (In our cla
c 2017 by Karl Sigman
Copyright
1
Conditional probabilities and independence of events
and of random variables. Bayes Law
When computing a probability of an event A, P (A), the probability could change if
we know in advance that some other related event
Copyright c 2017 by Karl Sigman
1
Continuous random variables
Unlike discrete random variables (rvs), continuous rvs X take values in a continuum of
points on the real line R, and thus as we shall see it will follow that P (X = x) = 0 for
any x 2 R, that
Copyright c 2017 by Karl Sigman
1
Joint Probability Distributions
2
Definitions
Given a pair of rvs X and Y (on the same probability space), the probability distribution
of the vector (X, Y ) is referred to as the joint probability distribution of X and Y