Question: .. found in problem 6? sf Conduct a Miller-Orr analysis using the data in problems 6 but with a lower cash limit of $5,000. a.

.. found in problem 6? sf Conduct a Miller-Orr analysis using the data in problems 6 but with a lower cash limit of $5,000. a. What should the cash return level be, using the Miller-Orr model? b. What is your estimate of the average cash balance if the Miller~0rr calculation is used to set the cash return level? c. How do you explain your nding in part a to the assistant treasurer, who wants to know . how to use the information provided by the model? d. If the variance of daily net cash flows is $10,000,000 instead of $5,000,000, how does this change the answer determined in part a? Is the cash return level double your earlier result? How do you interpret this? (Optional) How does your result in part a compare with the Baurnol model prescriptions found in problem 6? __ _A ._'L._

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