Random Models past paper

Please could you answer Questions: A1 and A2 of the past paper. Please provide clear explanations assuming the reader has no knowledge of the subject. Thanks

Stochastic models past paper

B7 of the past paper. Please provide clear explanations assuming the reader has no knowledge of the subject. Thanks

Probability problem

Please open the attached excel and word files for the example. Assume I am valuing the cash flows of a simple company with contracts 'a' through 'f' that have different varying cash flows over 10 years. Probability of default for each contract a-f in any given year = 2.50%. Once there is a default, the cash flows cease and there is no ability to recover future cash flows. Defaults are not correlated. What is the expected value of cash flows for each year? How do I model this? Do we need to assume a normal distribution? What happens if I increase the number of contracts? NOTE:IF THE FOLLOWING IS EASILY DONE PLS GO AHERAD BUT IF NOT, THEN DO NOT BOTHER. W... click for more

A student plans to open a hot dog stand inside a stadium

1- A student plans to open a hot dog stand inside a stadium 7 games scheduled, she must pay a vendor's fee of $ 3000 for te season. Her stand and equipemnt will cost her $4500 for the season. she estimate each hod dog she will sell will cost her 0.35 and that she will sell about 2,000 during each games a- what price should she charge for a hot dog in order to breakeven? b- what factors might occur during the season that would alter the volume sold and thus the breakeven price she might charge? c- what price would you suggest that she charge for a hot dog to provide her with a reasonable profit while remaining competitive with other food vendors.

What is the probability that a given patient if the patient has a serious illness?

Researchers have determined that patients who are smokers have 18% chance of contracting a serious illness, whereas onlt .06 probability that a non smoker will contract a serious illness. 23% are all smokers 77% non smokers What is the probability that a given patient if the patient has a serious illness?