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Identify the Distribution of the given Random Variable
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"A bag contains 5 blue balls and 8 purple balls. If 3 balls are chosen randomly and without replacement, form the bag. Let x be the number of blue balls obtained. Then x has a distribution. (a)... More > Poisson (b) Geometric (c) Normal (d) Binomial (e) Hypergeometic "< Less
Decision Making as to Keep the Stock or Sell the Given Stock
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Assume that you work for a corporation and discover that news of a new product it developed had contributed greatly to the recent rise in its stock price. Your company’s new product has been... More > rendered obsolete by the new product of a competitor. You own a substantial number of shares of the corporation’s stock. The news of the competitor’s discovery has not been made public. Should you sell the stock?< Less
Calculations of Value of Cost of Loan from Bank
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"Which do you prefer: a bank account that pays 5% per year (EAR) for three years or a) An account that pays 2.5% every six months for three years? b) An account that pays 7.5% every 18... More > months for three years? c) An account that pays 0.5 % per month for three years? "< Less
Calculating the Expected Amount of Disposable Income of Project
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"a) What is the expected amount of disposable income the landlord will have facing this risky situation? Is this a fair gamble? b) What is the expected utility of the landlord in this risky... More > situation assuming he cares only about his disposable income? c) What amount of certain income would make the landlord as happy as he would be facing the risky situation? "< Less

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