# Question

a. What kinds of situations give rise to an exponential distribution?

b. What is meant by the fact that an exponential random variable has no memory?

c. Can the standard normal probability table be used to find probabilities for an exponential distribution? Why or why not?

d. How do you find probabilities for an exponential distribution?

b. What is meant by the fact that an exponential random variable has no memory?

c. Can the standard normal probability table be used to find probabilities for an exponential distribution? Why or why not?

d. How do you find probabilities for an exponential distribution?

## Answer to relevant Questions

A call option on common stock is being evaluated. If the stock goes down, the option will expire worthless. If the stock goes up, the payoff depends on just how high the stock goes. For simplicity, the payoffs are modeled as ...Repeat the previous problem, but now assume that 85% are in favor in the population. Is the uncertainty larger or smaller than when 50% was assumed? Why? A new project will be declared “successful” if you achieve a market share of 10% or more in the next two years. Your marketing department has considered all possibilities and decided that it expects the product to attain ...If tomorrow is a typical day, your human resources division will expect to receive résumés from 175 job applicants. You may assume that applicants act independently of one another. a. What is the name of the probability ...You can invest in just one of four projects on a lot of land you own. For simplicity, you have modeled the payoffs (as net present value in today’s dollars) of the projects as discrete distributions. By selling the land, ...Post your question

0