(Solution) An entrepreneur in a developing country owns 10 food carts. He has ten employees to work with these food carts. > Snapessays.com

(Solution) An entrepreneur in a developing country owns 10 food carts. He has ten employees to work with these food carts.

An entrepreneur in a developing country owns 10 food carts.  He has ten employees to work with these food carts.  Let Xi be a random variable representing revenue from cart i (on a particular day), i = 1,..., 10.  Xi is approximately normally distributed with mean \$35, and variance 64 (squared dollars).  Revenues of the different carts are independent.What is the probability that cart i will generate revenue less than \$30 on a particular day?In this question the cumulative distribution function of the standard normal random variable is denoted by F(.).F(1.97) 1–F(1.97) 1–F(0.625) F(0.625) Flag this QuestionAn entrepreneur in a developing country owns 10 food carts.  He has ten employees to work with these food carts.  Let Xi be a random variable representing revenue from cart i (on a particular day), i = 1,..., 10.  Xi is approximately normally distributed with mean \$35, and variance 64 (squared dollars).  Revenues of the different carts are independent. What is the probability that average revenue will be less than \$30 on a particular day?In this exercise the cumulative distribution function of the standard normal random variable is denoted by F(.).1–F(1.97) F(0.625) F(1.97) 1–F(0.625) Flag this QuestionAn entrepreneur in a developing country owns 10 food carts.  He has ten employees to work with these food carts.  Let Xi be a random variable representing revenue from cart i (on a particular day), i = 1,..., 10.  Xi is approximately normally distributed with mean \$35, and variance 64 (squared dollars).  Revenues of the different carts are independent.How many carts would the entrepreneur have to own in order for the probability to be at least 0.90 that average revenue on a particular day will be between \$33 and \$37?The cumulative distribution function of a normal random variable is denoted by F(.) in this exercise.49 44 7 64 ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------In this exercise you are choosing between the following investment strategies: Invest \$200 in stock A. Stock A costs \$20 per share.  Expected yield per share of stock A is \$2, and the variance of yield per share is 9 (\$-squared). Invest \$200 in stock B. Stock B costs \$10 per share.  Expected yield per share of stock B is \$0.90, and the variance of yield per share is 1 (\$-squared). Invest \$100 in stock A and \$100 in stock B.  The correlation between yield per share of stock A and yield per share of stock B is 0.12.   Flag this QuestionWhich investment strategy has the highest expected yield? Calculate the expected yield of each strategy. Expected yield of strategy (i) is 18, expected yield of strategy (ii) is 19, expected yield of strategy (iii) is 20 Expected yield of strategy (i) is 19, expected yield of strategy (ii) is 20, expected yield of strategy (iii) is 18 Expected yield of strategy (i) is 20, expected yield of strategy (ii) is 18, expected yield of strategy (iii) is 19 Expected yield of strategy (i) is 19, expected yield of strategy (ii) is 18, expected yield of strategy (iii) is 20   Flag this Question What is the variance of yield for each portfolio? The variance of the yield of portfolio (i) is 900; the variance of the yield of portfolio (ii) is 400; and the variance of the yield of portfolio (ii) is 361. The variance of the yield of portfolio (i) is 90; the variance of the yield of portfolio (ii) is 40; and the variance of the yield of portfolio (ii) is 36.1. The variance of the yield of portfolio (i) is 1000; the variance of the yield of portfolio (ii) is 500; and the variance of the yield of portfolio (ii) is 300. The variance of the yield of portfolio (i) is 900; the variance of the yield of portfolio (ii) is 400; and the variance of the yield of portfolio (ii) is 325.   Flag this Question Assuming that yields for each stock are approximately normally distributed, with which investment strategy do you have the smallest chance of losing money? Calculate the probability that each investment strategy will result in you losing money. The probability of losing money is 0.1587 with (i); it is 0.1841 with (ii); and it is 0.2546 with (iiii). The probability of losing money is 0.1841 with (i); it is 0.2546 with (ii); and it is 0.1587 with (iiii). The probability of losing money is 0.1841 with (i); it is 0.1587 with (ii); and it is 0.2546 with (iiii). The probability of losing money is 0.2546 with (i); it is 0.1841 with (ii); and it is 0.1587 with (iiii).

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