1. Bridget's Modeling Studios is considering opening in a new location in Miami. You must estimate the cash flow per day (expected mean value) For each of the two locations being evaluated, given the following probability distributions . Finally, which of these sites should be selected based on the distribution of these expected cash flows (use the coefficient of variation as your measure of risk)? Site A Site B Probability Cash Flows Probability Cash Flows .15 $800 .10 $500 .50 $1100 .20 $800 .30 $1400 .40 $1200 .05 $2200 .20 $1600 Expected Value $ Expected Value $ qA$583 qA$414.73 a. Find the expected mean cash flow for each of the two sites, A and B. b. Determine the coefficient of variations for the expected repairsfor each of the sites. c. Which of these sites should be selected based on the condition that you have an aversion to risk? Explain. 2. The distribution of an MBA-class' GMAT scores, which is normal, has a mean of 620 and standard of 30. Find the probability that an individual's GMAT score is: a. less than 650. b. greater than 620. 3. State whether you would reject or fail to reject (FTR) the null hypothesis in each of the following cases: a. = .05, = .01: Answer: _________________________ b. = .03, = .05: Answer: __________________________ c. = .001, = .01: Answer: _________________________ d. = .01, = .05: Answer: _________________________ 4.You have just received a report that specifies that the test statistic, Z, is 1.64. It also mentions that the level of significance () is .05 for a two-tail test. Calculate the -value and state if the test statistic is significant or not. 5.The following table records the number of days the stock market recorded the following outcomes: # of Days NASDAQ Up NASDAQ Down NASDAQ Unchanged DJIA Up 26 10 4 DJIA Down 5 42 3 DJIA Unchanged 3 5 2 Total 34 57 9 a. What is the probability that the outcome \"DJIA Up and NASDAQ Down\" occurs? Total 40 50 10 100 b. What is the probability that the DJIA goes up? c. If it were known that the DJIAis down, what is the probability the NASDAQ would be up