2) There are four possible states of the world: 1, 2, 3, and 4, with corresponding stateclaims: S1, S2, S3, and S4. Three assets are available with asset prices (in dollars) andpayoffs (in "corn") in the four states given below:A1: price-$24 payoffs: (1, 2, 3, 4)A2: price=$13 payoffs: (0, 1, 2, 3)A3: price = $12 payoffs: (0, 0, 2, 4)No other assets are available.A) Find a portfolio that replicates the state claim S1 with payoff (1, 0, 0, 0)B) What is the price of that state claim?C) Explain why at least one of S2, S3, and/or S4 cannot be replicated with these assets.

A) Find a portfolio that replicates the state claim S1S1S1 with payoff (1,0,0,0)We are given the…

Answered: 2) There are four possible states of…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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Tri-County Utilities, Inc., supplies natural gas to customers in a three-county area. The company purchases natural gas from two companies: Southern Gas and Northwest Gas. Demand forecasts for the coming winter season are as follows: Hamilton County, 400 units; Butler County, 200 units; and Clermont County, 300 units. Contracts to provide the following quantities have been written: Southern Gas, 500 units; and Northwest Gas, 400 units. Distribution costs for the counties vary, depending upon the location of the suppliers. The distribution costs per unit (in thousands of dollars) are as follows:
In Delphi, there are three processing plants. The pay information for the representatives of these production lines is as per the following: No.of Employees Average income Total income Factory A 100 $8000 $800000 Factory B 80 $5000 $400000 Factory C 20 $20000 $400000 What is the normal pay of the assembly line laborers of Delphi?
The following information applies to the questions displayed below.]RunHeavy Corporation (RHC) is a corporation that manages a local band. It had the following activities during its first month. RHC was formed with an investment of $11,900 cash, paid in by the leader of the band on January 3 in exchange for common stock. On January 4, RHC purchased music equipment by paying $2,300 cash and signing an $9,600 promissory note payable in three years. On January 5, RHC booked the band for six concert events, at a price of $2,800 each, but no cash was collected yet. Of the six events, four were completed between January 10 and 20. On January 22, cash was collected for three of the four events. The other two bookings were for February concerts, but on January 24, RHC collected half of the $2,800 fee for one of them. On January 27, RHC paid $3,440 cash for the band’s travel-related costs. On January 28, RHC paid its band members a total of $2,490 cash for salaries and wages for the first…
How common are financial cost or contractual constraints associated with smartphone ownership? A survey of smartphone owners found that 48% of the 18- to 29-year-olds, 38% of the 30- to 49-year-olds, 25% of the 50- to 64-year-olds, and 19% of those age 65 or older have reached the maximum amount of data they are allowed to use as part of their plan, at least on occasion. Suppose the survey was based on 200 smartphone owners in each of the four age groups: 18 to 29, 30 to 49, 50 to 64, and 65+. a. At the 0.05 level of significance, is there evidence of a differ-ence among the age groups in the proportion of smartphone owners who have reached the maximum amount of data they are allowed to use as part of their plan, at least on occasion? b. Determine the p-value in (a) and interpret its meaning. c. If appropriate, use the Marascuilo procedure and a=0.05 to determine which age groups differ.
The chief loan officer of La Crosse Home Mortgage Company summarized the housing loans extended by the company in 2017 according to type and term of the loan. Her list shows that 70% of the loans were fixed-rate mortgages (F), 20% were adjustable-rate mortgages (A), and 10% belong to some other category (0) (mostly second trust-deed loans and home equity loans). Of the fixed-rate mortgages, 80% were 30-year loans and 20% were 15-year loans; of the adjustable-rate mortgages, 30% were 30-year loans and 70% were 15-year loans; finally, of the other loans extended, 30% were 20-year loans, 60% were 10-year loans, and 10% were for a term of 5 years or less. (a) Draw a tree diagram representing these data. 20 s 5 10 <=5 15 30 30 30 20 ca5 15 (b) What is the probability that a home loan extended by La Crosse has an adjustable rate and is for a term of 15 years? (c) What is the probability that a home loan extended by La Crosse is for a term of 15 years?
Consider 2 Countries, Domestic and Foreign. Both countries have the same production technology. They differ in their endowment of L and K. Foreign has the following situation: PFood = 6*w + 4*r PBeyerage = 4*w + 4*r PFood = $24 Domestic has the following situation: = 6*w + 4*r PEood PBeverage PEeod = $32 PBeverage = $24 = 4*w + 4*r PBeverage = $20 1. Initially, the countries operate in autarky – no trade. Complete the table to determine conditions within each country. Autarky w*D = w*F r*D = r*F w/r = w/r = (K/L)Food = (K/L)Feed (K/L)Beverage (K/L)Beverage Food per w = Food per w = Beverage per w = Beverage per w = Food per r= Food per r = Beverage perr= Beverage perr= 1. 1. 10
..
How common are financial cost or contractual constraints associated with smartphone ownership? A survey of smartphone users found that 49% of the 18- to 29-year-olds, 40% of the 30- to 49-year-olds, 25% of the 50- to 64-year-olds, and 19% of those age 65 or older have reached the maximum amount of data they are allowed to use as part of their plan, at least on occasion: Suppose the survey was based on 200 smartphone owners in each of the four age groups: 18 to 29, 30 to 49, 50 to 64, and 65 and older The test statistic is χ2STAT = ? (Round to three decimial places)
12) Thirty six percent of all assembly line mechanical robots are claimed for services by the technicians to be sent out to the manufacturer all under the issued warranty at the time of purchase. Out of these robots sent under warranty, 45% will be repaired and sent back to the factory and 55% will be replaced under warranty at no cost. Suppose the company you are working for recently ordered 15 of these mechanical robots. The CEO agreed to sign a five years purchasing contract if only the probability of sending back three of these robots are LESS than 0.24 during the life of the contract. Will she approve the purchasing contact? [Hint: you are trying to find the probability of exactly three robots will eventually be replaced under warranty as she will not sign off if such probability for three is more than 24%.]
Sharp Outfits is trying to decide whether to ship some customer orders now via UPS or wait until after the threat of another UPS strike is over. If Sharp Outfits decides to ship the requested merchandise now andthe UPS strike takes place, the company will incur $60,000 in delay and shipping costs. If Sharp Outfits decides to ship the customer orders via UPS and no strike occurs, the company will incur $4000 in ship-ping costs. If Sharp Outfits decides to postpone shipping its customer orders via UPS, the company will incur $10,000 in delay costs regardless of whether UPS goes on strike. Let p represent the probabilitythat UPS will go on strike and impact Sharp Outfits’s shipments.a. For which values of p, if any, does Sharp Outfits minimize its expected total cost by choosing to postpone shipping its customer orders via UPS? b. Suppose now that, at a cost of $1000, Sharp Outfits can purchase information regarding the likelihood of a UPS strike in the near future. Based on similar…
et △ABC be a triangle in S^2 (the two-dimensional sphere). Let the dual point C'∈S^2 of C be defined by the following three conditions:(i) d(C' , A)=π/2(ii) d(C' , B)=π/2(iii) d(C' , C)≤π/2A' and B' are defined analogously. Thus we get a dual triangle △A' B' C'. More precisely, △ABC is a non-degenerate triangle, andit follows (you may assume) that △A' B' C' is too.(question) Are there triangles △ABC in S^2 identical to their own dual △A'B'C'? I would be very thankful if you could provide some explanation with the steps, thank you in advance.
7. The Oakland Bombers professional basketball team just missed making the playoffs last season and believes it needs to sign only one very good free agent to make the playoffs next season. The team is considering four players: Barry Byrd, Rayneal O' Neil, Marvin Johnson, and Michael Gordan. Each player differs according to position, ability, and attractiveness to fans. The payoffs (in $1,000,000s) to the team for each player, based on the contract, profits from attendance, and team product sales for several different season outcomes, are provided in the following table: Season Outcome Makes Player Loser Competitive Playoffs $ 1.3 Вyrd O'Neil $-3.2 4.4 -5.1 -2.7 1.8 6.3 Johnson 0.7 5.8 Gordan -6.3 -1.6 9.6 Determine the best decision, using the following decision criteria. Maximax b. Maximin c. Hurwicz (a = .6) d. Equal likelihood

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