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 − 1.282^1|0σ = USD 13,313.
7. (.90) = ⁰p − (.10) = USD 4,687.