ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- Please no written by hand solution Kate recently invested in real estate with the intention of selling the property one year from today. She has modeled the returns on that investment based on three economic scenarios. She believes that if the economy stays healthy, then her investment will generate a 30 percent return. However, if the economy softens, as predicted, the return will be 10 percent, while the return will be -25 percent if the economy slips into a recession. If the probabilities of the healthy, soft, and recessionary states are 0.6, 0.2, and 0.2, respectively, then what are the expected return and the standard deviation of the return on Kate❝s investment? Calculate the coefficient of variation for this investment. (Round expected return to 3 decimal places, e.g. 0.125 and round intermediate calculations and standard deviation to 5 decimal places, e.g. 0.07680.)arrow_forwardplease help with 1 and 2 Students taking the Graduate Management Admissions Test (GMAT) were asked about their undergraduate major and intent to pursue their MBA as a full-time or part-time student. A summary of their responses follows. Answer questions 6-9. Undergraduate Major Business Engineering Other Totals Intended Enrollment Status Full-Time 352 197 251 800 Part-Time 150 161 194 505 Totals 502 358 445 1305 1. Refer to Table 1. What is the probability that the student was an undergraduate business major? Group of answer choices 0.4400. 0.3410. 0.3847. 0.2743. 2. Refer to Table 1. What is the probability that an undergraduate business major intends to attend classes full-time in pursuit of an MBA degree ? Group of answer choices 0.7011. 0.6130. 0.4400. 0.2697.arrow_forwarduse the data to compute the probability that an adult in the tri state region smokes kentucky 47 176 indiana 32 134 ohio 39 182 total 118 492arrow_forward
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