qualty perisnable, and any goods unsold at the end of a day are a dead loss. He expects the demand to be variable and has drawn' up the following probability distribution expressing his estimates : No. of piece demand 10 Probability Calculate his expected net profit or loss if he manufactures 12 pieces. Unit produced = 12. Manufacturing cost Re 1 per unit selling price = Rs 3 per unit. 11 12 13 14 15 .07 .10 .23 .38 .12 .10

6. True or False? Assume the below life table was constructed from following individuals who were diagnosed with slow-progressing form of prostate cancer and decided not to receive treatment of any form. The calculated survival probability for year 3, if the Kaplan-Meir approach is used to calculate the survival probability, is approximately 0.7438.   Time in years Number at risk Nt  Number of deaths, Dt Number of censored Ct Survival Probability 0 20     1 1 20 3     2 17   1   3 16 2 1

Assume that we believe that the arithmetic return has a mean of 0 and that, from histori- = cal data, we estimate its variance to be ô 2.4. We invest So the Chebyshev inequality, estimate an upper bound on VaR.05. use this method? $100 into this asset. Using What must you assume to =