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Calculate the net present value of a business deal that costs $2,500 today and will return $1,500 at the end of this year and $1,700 at the end of the year.
Find an interest rate that gives a net present value of 0. The interest rate for which NPV = 0 is often called the internal rate of return.
Union Finance can usually earn 18% on its money. What is the net present value of the deal to Union if Briggs participates as proposed?
Draw a decision tree of this situation, assuming that there is only one fundamental objective, to maximize revenue.
You have met an acquaintance for lunch, and he is worried about an upcoming meeting. In your own words, explain to him the advantages and disadvantages of each.
Create a decision tree of this situation. Create an influence diagram of the situation using PrecisionTree.
Written by Ronny Graham, directed by Burt Metcalfe, 1980.) Structure the doctors' decision. What are their objectives? What risks do they face?
What kind of party to have, and one for the actual weather. Which direction should the arrow point between these two nodes? Why?
Decision analysis can be used on itself! What do you want to accomplish in studying decision analysis? Why is decision analysis important to you?
Identify goals, constraints, and guidelines. What are your aspirations? What limitations are placed on you? What is wrong or right with your organization?
What is marginal propensity to consume? What increase in I is required to increase Y to 5,000? If this increase takes place will savings (Y - C) still equal I?
Explain how it relates to what you have just learned. Do not copy and paste directly from the article except for small quotes that help explain your summary.
California Nevada, Utah Idaho, and variable, and create a new string variable, state, that contains the full name of the state save the dataset as cigconsumpw.
Using for each state (labeled by the full state name) listing these three variables by year. Compute correlations of the state's pack variable.
Compute averages of pickup for subsamples of median age above and below its annual median value (hint: even, tab stat). Does smoking appear to be age related?
List the year, pack and mw4packps for California. What do you notice about the moving average relative to the series itself?
Regress y = (2, 1, 0) on X=(0, 1, 2) without a constant term, and calculate the residuals. What do you conclude about the model fitted without a constant terms?
Generate an added value plot by using applet safe water. What do you conclude about the regression estimates?
Generate the fits series from the regression and list the five countries with the largest absolute value of DFITS measure. Which of these countries stand out?
Refit the model omitting Haiti, and apply the RESET. What do you conclude about the model's specification?
Use the Breach Pagan test (hottest) for variable year. Save the residuals, and use rover to compute their variances by year. What does this test tell you?
Use FGLS to refit the model, using analytical weights based on the residues from each year. How do these estimates differ from the LOS estimates?
How do you interpret the coefficient estimates? Use the Breach Godfrey test to evaluate the error's independence. What do you conclude?
What comments can you make about these estimates? Estimate the equation, adding the cluster (age option. What is the rational for clustering by age?
What are the expected signs? Are they borne out by the estimates? If not. How might you explain the estimated coefficients?