Exercise Solution 1.12

Exercise Solution 1.12

  1. Each component has value 1 USD, so:

    [s.1]

  2. = USD 18,000.
  3. .
  4. [s.2]

  5. 1|0σ = = USD 3,656.
  6.  (.10) = 1|0μ − 1.2821|0σ = USD 13,313.
  7.  (.90) = 0p (.10) = USD 4,687.

 
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