Statistical Techniques in Business and Economics
Statistical Techniques in Business and Economics
18th Edition
ISBN: 9781260579611
Author: Douglas Lind; William Marchal; Samuel Wathen
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 20, Problem 5E
To determine

Find the expected opportunity losses.

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A five-year project requires an investment of -112 and has the following cash flows in years 1 through 5, respectively (all cash flows in dollars): 48, 88, 34, 15, and 52. Find the difference between the Cauchy upper bound and the Cauchy lower bound. Write your answer as a percentage with two decimals; e.g., 23.55% but do not write the % sign. (Acceptable error = 0.50%)
The tree diagram in the shown Figure  describes the uncertain cash flows for an engineering project. The analysis period is two years, and MARR = 15% per year. Based on this information, Solve, a. What are the E(PW), V(PW), and SD(PW) of the project? b. What is the probability that PW ≥ 0?
1. The first job is in Sacramento.  The starting salary will be $42000.  This employer has a history of offering annual raises of $2800 for the first five years and $1000 after that.   The second job is in Detroit.  The starting salary will be $36000.  This employer has a history of offering annual raises of 6%.  a. Write an equation/formula for Alex’s expected salary if he takes the job in Sacramento.  Remember to define your variables. b. Write an equation/formula for Alex’s expected salary if he takes the job in Nashville. c. Create a data chart for both showing the salaries for at least 20 years
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