Five-Step Approach to Unstructured Problems 1. Succinct Statement of the Financial Reporting Issue(s) Provide a brief statement of the accounting issue that includes the characteristics of the transaction that introduce uncertainty about how to record it. How should an expenditure, in this instance to purchase a lottery ticket, which has a risk of providing no future cash flows be reported? 2. Brief Summary of the Economic Purpose of the Transaction State the reason corporate management
Words: 1047 - Pages: 5
will increase the value of the resulting wine. This decision is complicated by the fact that ripe Riesling grapes can be converted to wine in two ways, resulting in two different types of wine. Factors that should be taken into consideration Probability of rain, mold formation, acidity, sugar level, wine price, and reputation. Mr. Jaeger’s possible choices: Harvest now or later. Solution: The payoffs are calculated based on 1000 cases of wine. 1. There are two alternatives: * Waiting
Words: 530 - Pages: 3
December 2004 Pittsburgh, Pennsylvania USA Contents 1 The Binomial No-Arbitrage Pricing Model . . . . . . . . . . . . . . . . 1.7 Solutions to Selected Exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 7 7 2 Probability Theory on Coin Toss Space . . . . . . . . . . . . . . . . . . . . 2.9 Solutions to Selected Exercises . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 State Prices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Words: 12957 - Pages: 52
NHPP Based Software Reliability Growth Models Stochastic processes are used for the description of a system’s operation over time. There are two main types of stochastic processes: continuous and discrete. Among discrete processes, counting processes in reliability engineering are widely used to describe the appearance of events in time (e.g., failures, number of perfect repairs, etc). The simplest counting process is a Poisson process. The Poisson process plays a special role to many applications
Words: 2507 - Pages: 11
cans purchased from a nationally known manufacturer is different from 1 gallon. (b) p-value = 0.0771. If the population mean amount of paint contained in 1-gallon cans purchased from a nationally known manufacturer is actually 1 gallon, the probability of obtaining a test statistic that is more than 1.7678 standard error units away from 0 is 0.0771. Problem 3 (a) Decision rule: Reject if |tSTAT| > 2.0555 d.f. = 26 Test statistic: Decision: Since |tSTAT| < 2.0555
Words: 541 - Pages: 3
Nandito ako ngayon sa tabi ng dagat. Nakatayo, habang pinapanood kong naglalakad papalayo ang kaisa-isang taong minahal ko. Isa….. dalawa…. tatlo. Wala na siya. Ang layo na niya sakin. Lumalabo na ang paningin ko at sunod sunod na ang pagpatak ng aking mga luha. Mga luhang nagpapahiwatag sa sakit na aking dinaramdam ngayon. At sa bawat pagpatak ng luha ko’y siya ring pagbalik ng ala-ala naming dalawa. Mga ala-ala kung bakit mahal ko siya. Tanggap ko na. Alam kong hindi kami para sa isa’t isa. Wala
Words: 2251 - Pages: 10
1. BASIC STATS Types of variables: Count: no of bedrooms/children, manufacture year Ordinal: categories, income brackets Nominal: gender, yes/no, manufacture model Continuous: distance, time, age, best cruising speed Graphs Scatterplots: shows if there is a linear relationship (positive increasing left to right, cov>0), doesn't measure strength Histogram: modality skewness (positive long tail to right), modal class, symmetry Box Plot: Skewness (short/long whisker, short bottom=positive)
Words: 537 - Pages: 3
a) Good demand .47 $500,000 b) Moderate demand .38 $25,000 c) Poor demand .15 $1000 So, with the above given variables, to calculate the expected value, you multiply each probability times the corresponding payoff. Then add the results for each decision outcome. Calculations: a) .47 (500,000) = $235,000 b) .38 (25000) = $9500 c) .15 (1000) = $150 Branch 1 expected value = $244,650. 2). Develop rapidly: a) Good
Words: 290 - Pages: 2
defective rate is known to be 5%. Every day, the company will sample a batch of 20 cameras to check for manufacturing error. Assuming that the number of defective cameras follows a binomial distribution, calculate the i. ii. iii. probability of no camera is defective, probability that at most 2 cameras are defective, (2 marks) (4 marks) mean and standard deviation for the number of defective cameras (3 marks) (b) Do you agree that “if two events are mutually exclusive then these two
Words: 352 - Pages: 2
networks • truck routing • staff scheduling • financial portfolios • corporate restructuring Decision Trees In many problems chance (or probability) plays an important role. Decision analysis is the general name that is given to techniques for analysing problems containing risk/uncertainty/probabilities. Decision trees are one specific decision analysis technique. Sensitivity analysis Queuing Theory (Waiting Line
Words: 1401 - Pages: 6
