Further Pure 1 Revision Topic 5: Sums of Series
|
|
- Dylan Newton
- 5 years ago
- Views:
Transcription
1 The OCR syllabus says that cadidates should: Further Pure Revisio Topic 5: Sums of Series Cadidates should be able to: (a) use the stadard results for Σr, Σr, Σr to fid related sums; (b) use the method of differeces to obtai the sum of a fiite series; (c) recogise, by direct cosideratio of the sum to terms, whe a series is coverget, ad fid the sum to ifiity i such cases Sectio : Usig stadard formulae for r, r, r You eed to lear the formula: r r ( ) The followig formulae are give i the formula book: r r ( )( ) r ( ) r 4 Note: (this should be obvious to you if it is t the you eed to remember it!) r The above formulae ca be used to fid the sum of series Worked examiatio questio (Edexcel Jue 004) (a) Show that ( r )( r 5) = (+ 7)( + 7) (4) r (b) Hece calculate the value of Solutio: a) wwwtheallpaperscom 40 r0 ( r )( r 5) () ( r )( r 5) ( r r 5) (expadig out brackets) r r We ext split up the summatio ito several separate sums: ( r )( r 5) r r 5 r r r r
2 So, usig the results from above: ( r )( r 5) ( )( ) ( ) 5 = ( )( ) ( ) 5 r We ca try factorisig this by takig out as a factor: r ( r )( r 5) ( )( ) 8( ) 0 Expadig out the cotets of the square brackets gives: r ( r )( r 5) The cotets of the squared brackets ca ow be factorised We get the result: b) So: r ( r )( r 5) = (+ 7)( + 7) ( r )( r 5) ( r )( r 5) ( r )( r 5) r0 r r 40 r0 Therefore, 40 r0 ( r)( r 5) 40(47)(87) 9 5 ( r)( r 5) Examiatio questio: Edexcel Jue 00 Prove that r ( r ) ( )( + 5) wwwtheallpaperscom
3 Examiatio questio (AQA Jue 005) a) Use stadard formulae to show that r ( r ) ( )( ) r b) Use the result from part (a) to fid the value of r ( r) r4 Examiatio questio (AQA 00) a) Fid the sum of the itegers from to 00 iclusive b) Evaluate: 00 ( r r) r wwwtheallpaperscom
4 Examiatio questio (OCR May 004) (i) Use the formula for r to show that (ii) (iii) Show also that ( ) ( ) 4 ( ) ( ) Hece fid the sum of the series simplifyig your aswer 4 ( ) ( ), wwwtheallpaperscom
5 Sectio : Method of differeces Some series ca be summed usig a differece method Worked examiatio questio (AQA 00) a) Show that r r ( r ) r ( r ) b) Hece fid the sum of the first terms of the series Solutio: a) Writig with a commo deomiator, we get Therefore, b) We wish to fid ( r) r r ( r ) r ( r ) r ( r ) r r r r r ( r ) r ( r ) r ( r ) r r r ( r) Usig the result from (a), this is equivalet to fidig r r ( r) Substitutig r =,,, ito this summatio gives: 4 ( ) Therefore, = ( ) r r ( r) ( ) Note: The series give i the above questio is coverget As the value of icreases (ie as the umber of terms gets bigger ad bigger), the sum of the series approaches (sice the value of will ted to zero) ( ) We write = r r ( r) wwwtheallpaperscom
6 Worked examiatio questio (Edexcel Ja 004) (a) Show that (r + ) (r ) Ar + B, where A ad B are costats to be foud (b) Prove by the method of differeces that r = ( + )( + ), > Solutio a) O removig the brackets we fid that r (r + ) (r ) = r r r r r r So, A = ad B = b) So, (r ) ( r ) ( r ) r r = r Workig out the right had side of this equatio (by substitutig r =,,, etc) gives: ie (r ) ( 0 ) ( ) ( 4 ) ( 5 r st term d term rd term 4th term r ( 4 5th term (r ) ( ) But the left-had side of this equatio is: Therefore: So: ie ) ( ( ) r r r r th term (r ) r r r = r ( ) ) ) (( ) ( ) th term r = ( ) ( ) r r = r So we get the result: r ( ) ( )( ) r = ( + )( + ) Examiatio questio (Adapted from Edexcel Jue 005) (a) Show that = 4r r r (b) Hece, or otherwise, prove that = 4r r ) wwwtheallpaperscom
7 (c) Hece fid the exact value of 0 r 4r Examiatio questio (adapted from Edexcel Ja 005) (a) Show that r( r ) r ( r ) (b) Hece prove, by the method of differeces, that 4 ( 5) = r( r ( )( ) 00 (c) Fid the value of 4 r 50 r( r ) r ), to 4 decimal places wwwtheallpaperscom
8 Examiatio questio (AQA Ja 005) a) Show that r ( r ) ( r ) r 4r b) Use the method of differeces to fid the value of 00 r r50 Examiatio questio (AQA Jue 004) a) Show that r( r ) ( r )( r ) r( r )( r ) b) Hece fid the sum of the series givig your aswer as a ratioal umber, wwwtheallpaperscom
9 Examiatio Questio (OCR Jauary 005) 4 You are give that f() r ( r)( r) (i) Show that f() r r r (ii) Hece fid f() r (You eed ot express your aswer as a sigle fractio) r (iii) Show that the series i part (ii) is coverget, ad state its sum to ifiity wwwtheallpaperscom
10 Worked examiatio questio (OCR May 005) a) Show that b) (i) Give that (r ) ( ) r f() r rr ( ), show that f ( r ) f ( r) r( r )( r ) (ii) Hece fid r r( r )( r ) Solutio: a) (r ) (9r r ) 9 r r r r r r r Usig the stadard formulae give i sectio of these revisio otes, we see that r (r ) 9 ( )( ) ( ) = ( )( ) ( ) Takig out ½ as a factor, we get: r (r ) ( )( ) ( ) 9 b) If f() r rr ( ), the f( r) ( r)( r) So, f ( r ) f ( r) = - ( r)( r) rr ( ) r r Therefore, f ( r ) f ( r) = r( r )( r ) r( r )( r ) r( r )( r ) (ii) = r r( r )( r ) Therefore, r r r r ( f ( r ) f ( r)) r( r )( r ) r r = ( f () f()) ( f() f () ) ( f (4) f () ) ( f ( ) f ( ) ) ( )( ) ie r r( r )( r ) But, = f ( ) f () wwwtheallpaperscom
11 f () ad f( ) ( )( ) Therefore = f () f ( ) r r( r )( r ) ( )( ) 4 ( )( ) Examiatio questio (AQA Jue 00) a) Show that r r! ( r )! ( r )! b) Hece fid r r ( r )! Hit: I part (a), use the result that (r + )! = (r + )r! wwwtheallpaperscom
physicsandmathstutor.com
physicsadmathstutor.com 9. (a) A geometric series has first term a ad commo ratio r. Prove that the sum of the first terms of the series is a(1 r ). 1 r (4) Mr. Kig will be paid a salary of 35 000 i the
More informationCHAPTER : ARITHMETIC PROGRESSION CONTENTS. Idetify characteristics of arithmetic progressio PAGE 2.2 Determie whether a give sequece is a arithmetic p
ADDITIONAL MATHEMATICS FORM 5 MODULE ARITHMETIC PROGRESSION CHAPTER : ARITHMETIC PROGRESSION CONTENTS. Idetify characteristics of arithmetic progressio PAGE 2.2 Determie whether a give sequece is a arithmetic
More informationA random variable is a variable whose value is a numerical outcome of a random phenomenon.
The Practice of Statistics, d ed ates, Moore, ad Stares Itroductio We are ofte more iterested i the umber of times a give outcome ca occur tha i the possible outcomes themselves For example, if we toss
More informationSolutions to Problem Sheet 1
Solutios to Problem Sheet ) Use Theorem.4 to prove that p log for all real x 3. This is a versio of Theorem.4 with the iteger N replaced by the real x. Hit Give x 3 let N = [x], the largest iteger x. The,
More informationChapter 3. Compound interest
Chapter 3 Compoud iterest 1 Simple iterest ad compoud amout formula Formula for compoud amout iterest is: S P ( 1 Where : S: the amout at compoud iterest P: the pricipal i: the rate per coversio period
More informationSingle-Payment Factors (P/F, F/P) Single-Payment Factors (P/F, F/P) Single-Payment Factors (P/F, F/P)
Sigle-Paymet Factors (P/F, F/P) Example: Ivest $1000 for 3 years at 5% iterest. F =? i =.05 $1000 F 1 = 1000 + (1000)(.05) = 1000(1+.05) F 2 = F 1 + F 1 i = F 1 (1+ = 1000(1+.05)(1+.05) = 1000(1+.05) 2
More information11.7 (TAYLOR SERIES) NAME: SOLUTIONS 31 July 2018
.7 (TAYLOR SERIES NAME: SOLUTIONS 3 July 08 TAYLOR SERIES ( The power series T(x f ( (c (x c is called the Taylor Series for f(x cetered at x c. If c 0, this is called a Maclauri series. ( The N-th partial
More informationEstimating Proportions with Confidence
Aoucemets: Discussio today is review for midterm, o credit. You may atted more tha oe discussio sectio. Brig sheets of otes ad calculator to midterm. We will provide Scatro form. Homework: (Due Wed Chapter
More informationWhen you click on Unit V in your course, you will see a TO DO LIST to assist you in starting your course.
UNIT V STUDY GUIDE Percet Notatio Course Learig Outcomes for Uit V Upo completio of this uit, studets should be able to: 1. Write three kids of otatio for a percet. 2. Covert betwee percet otatio ad decimal
More informationSTRAND: FINANCE. Unit 3 Loans and Mortgages TEXT. Contents. Section. 3.1 Annual Percentage Rate (APR) 3.2 APR for Repayment of Loans
CMM Subject Support Strad: FINANCE Uit 3 Loas ad Mortgages: Text m e p STRAND: FINANCE Uit 3 Loas ad Mortgages TEXT Cotets Sectio 3.1 Aual Percetage Rate (APR) 3.2 APR for Repaymet of Loas 3.3 Credit Purchases
More informationMath 312, Intro. to Real Analysis: Homework #4 Solutions
Math 3, Itro. to Real Aalysis: Homework #4 Solutios Stephe G. Simpso Moday, March, 009 The assigmet cosists of Exercises 0.6, 0.8, 0.0,.,.3,.6,.0,.,. i the Ross textbook. Each problem couts 0 poits. 0.6.
More informationChapter 10 - Lecture 2 The independent two sample t-test and. confidence interval
Assumptios Idepedet Samples - ukow σ 1, σ - 30 or m 30 - Upooled case Idepedet Samples - ukow σ 1, σ - 30 or m 30 - Pooled case Idepedet samples - Pooled variace - Large samples Chapter 10 - Lecture The
More informationWe learned: $100 cash today is preferred over $100 a year from now
Recap from Last Week Time Value of Moey We leared: $ cash today is preferred over $ a year from ow there is time value of moey i the form of willigess of baks, busiesses, ad people to pay iterest for its
More informationbetween 1 and 100. The teacher expected this task to take Guass several minutes to an hour to keep him busy but
Sec 5.8 Sec 6.2 Mathematical Modelig (Arithmetic & Geometric Series) Name: Carl Friedrich Gauss is probably oe of the most oted complete mathematicias i history. As the story goes, he was potetially recogiized
More informationThe Limit of a Sequence (Brief Summary) 1
The Limit of a Sequece (Brief Summary). Defiitio. A real umber L is a it of a sequece of real umbers if every ope iterval cotaiig L cotais all but a fiite umber of terms of the sequece. 2. Claim. A sequece
More informationSubject CT5 Contingencies Core Technical. Syllabus. for the 2011 Examinations. The Faculty of Actuaries and Institute of Actuaries.
Subject CT5 Cotigecies Core Techical Syllabus for the 2011 Examiatios 1 Jue 2010 The Faculty of Actuaries ad Istitute of Actuaries Aim The aim of the Cotigecies subject is to provide a groudig i the mathematical
More informationISBN Copyright 2015 The Continental Press, Inc.
TABLE OF CONTENTS Itroductio 3 Format of Books 4 Suggestios for Use 7 Aotated Aswer Key ad Extesio Activities 9 Reproducible Tool Set 183 ISBN 978-0-8454-7897-4 Copyright 2015 The Cotietal Press, Ic. Exceptig
More informationMaximum Empirical Likelihood Estimation (MELE)
Maximum Empirical Likelihood Estimatio (MELE Natha Smooha Abstract Estimatio of Stadard Liear Model - Maximum Empirical Likelihood Estimator: Combiatio of the idea of imum likelihood method of momets,
More information1 The Power of Compounding
1 The Power of Compoudig 1.1 Simple vs Compoud Iterest You deposit $1,000 i a bak that pays 5% iterest each year. At the ed of the year you will have eared $50. The bak seds you a check for $50 dollars.
More informationLimits of sequences. Contents 1. Introduction 2 2. Some notation for sequences The behaviour of infinite sequences 3
Limits of sequeces I this uit, we recall what is meat by a simple sequece, ad itroduce ifiite sequeces. We explai what it meas for two sequeces to be the same, ad what is meat by the -th term of a sequece.
More informationChpt 5. Discrete Probability Distributions. 5-3 Mean, Variance, Standard Deviation, and Expectation
Chpt 5 Discrete Probability Distributios 5-3 Mea, Variace, Stadard Deviatio, ad Expectatio 1/23 Homework p252 Applyig the Cocepts Exercises p253 1-19 2/23 Objective Fid the mea, variace, stadard deviatio,
More informationMA Lesson 11 Section 1.3. Solving Applied Problems with Linear Equations of one Variable
MA 15200 Lesso 11 Sectio 1. I Solvig Applied Problems with Liear Equatios of oe Variable 1. After readig the problem, let a variable represet the ukow (or oe of the ukows). Represet ay other ukow usig
More information0.07. i PV Qa Q Q i n. Chapter 3, Section 2
Chapter 3, Sectio 2 1. (S13HW) Calculate the preset value for a auity that pays 500 at the ed of each year for 20 years. You are give that the aual iterest rate is 7%. 20 1 v 1 1.07 PV Qa Q 500 5297.01
More informationClass Sessions 2, 3, and 4: The Time Value of Money
Class Sessios 2, 3, ad 4: The Time Value of Moey Associated Readig: Text Chapter 3 ad your calculator s maual. Summary Moey is a promise by a Bak to pay to the Bearer o demad a sum of well, moey! Oe risk
More informationr i = a i + b i f b i = Cov[r i, f] The only parameters to be estimated for this model are a i 's, b i 's, σe 2 i
The iformatio required by the mea-variace approach is substatial whe the umber of assets is large; there are mea values, variaces, ad )/2 covariaces - a total of 2 + )/2 parameters. Sigle-factor model:
More informationTwitter: @Owe134866 www.mathsfreeresourcelibrary.com Prior Kowledge Check 1) State whether each variable is qualitative or quatitative: a) Car colour Qualitative b) Miles travelled by a cyclist c) Favourite
More informationStatistics for Economics & Business
Statistics for Ecoomics & Busiess Cofidece Iterval Estimatio Learig Objectives I this chapter, you lear: To costruct ad iterpret cofidece iterval estimates for the mea ad the proportio How to determie
More informationOverlapping Generations
Eco. 53a all 996 C. Sims. troductio Overlappig Geeratios We wat to study how asset markets allow idividuals, motivated by the eed to provide icome for their retiremet years, to fiace capital accumulatio
More informationSequences and Series
Sequeces ad Series Matt Rosezweig Cotets Sequeces ad Series. Sequeces.................................................. Series....................................................3 Rudi Chapter 3 Exercises........................................
More informationSampling Distributions and Estimation
Cotets 40 Samplig Distributios ad Estimatio 40.1 Samplig Distributios 40. Iterval Estimatio for the Variace 13 Learig outcomes You will lear about the distributios which are created whe a populatio is
More informationChapter 5: Sequences and Series
Chapter 5: Sequeces ad Series 1. Sequeces 2. Arithmetic ad Geometric Sequeces 3. Summatio Notatio 4. Arithmetic Series 5. Geometric Series 6. Mortgage Paymets LESSON 1 SEQUENCES I Commo Core Algebra I,
More informationStandard Deviations for Normal Sampling Distributions are: For proportions For means _
Sectio 9.2 Cofidece Itervals for Proportios We will lear to use a sample to say somethig about the world at large. This process (statistical iferece) is based o our uderstadig of samplig models, ad will
More informationToday: Finish Chapter 9 (Sections 9.6 to 9.8 and 9.9 Lesson 3)
Today: Fiish Chapter 9 (Sectios 9.6 to 9.8 ad 9.9 Lesso 3) ANNOUNCEMENTS: Quiz #7 begis after class today, eds Moday at 3pm. Quiz #8 will begi ext Friday ad ed at 10am Moday (day of fial). There will be
More informationFOUNDATION ACTED COURSE (FAC)
FOUNDATION ACTED COURSE (FAC) What is the Foudatio ActEd Course (FAC)? FAC is desiged to help studets improve their mathematical skills i preparatio for the Core Techical subjects. It is a referece documet
More informationSection Mathematical Induction and Section Strong Induction and Well-Ordering
Sectio 4.1 - Mathematical Iductio ad Sectio 4. - Strog Iductio ad Well-Orderig A very special rule of iferece! Defiitio: A set S is well ordered if every subset has a least elemet. Note: [0, 1] is ot well
More informationAPPLICATION OF GEOMETRIC SEQUENCES AND SERIES: COMPOUND INTEREST AND ANNUITIES
APPLICATION OF GEOMETRIC SEQUENCES AND SERIES: COMPOUND INTEREST AND ANNUITIES Example: Brado s Problem Brado, who is ow sixtee, would like to be a poker champio some day. At the age of twety-oe, he would
More informationUsing Math to Understand Our World Project 5 Building Up Savings And Debt
Usig Math to Uderstad Our World Project 5 Buildig Up Savigs Ad Debt Note: You will have to had i aswers to all umbered questios i the Project Descriptio See the What to Had I sheet for additioal materials
More information1 Random Variables and Key Statistics
Review of Statistics 1 Radom Variables ad Key Statistics Radom Variable: A radom variable is a variable that takes o differet umerical values from a sample space determied by chace (probability distributio,
More informationVariance and Standard Deviation (Tables) Lecture 10
Variace ad Stadard Deviatio (Tables) Lecture 10 Variace ad Stadard Deviatio Theory I this lesso: 1. Calculatig stadard deviatio with ugrouped data.. Calculatig stadard deviatio with grouped data. What
More informationBasic formula for confidence intervals. Formulas for estimating population variance Normal Uniform Proportion
Basic formula for the Chi-square test (Observed - Expected ) Expected Basic formula for cofidece itervals sˆ x ± Z ' Sample size adjustmet for fiite populatio (N * ) (N + - 1) Formulas for estimatig populatio
More informationLecture 5: Sampling Distribution
Lecture 5: Samplig Distributio Readigs: Sectios 5.5, 5.6 Itroductio Parameter: describes populatio Statistic: describes the sample; samplig variability Samplig distributio of a statistic: A probability
More information5. Best Unbiased Estimators
Best Ubiased Estimators http://www.math.uah.edu/stat/poit/ubiased.xhtml 1 of 7 7/16/2009 6:13 AM Virtual Laboratories > 7. Poit Estimatio > 1 2 3 4 5 6 5. Best Ubiased Estimators Basic Theory Cosider agai
More informationSOCIETY OF ACTUARIES FINANCIAL MATHEMATICS EXAM FM SAMPLE SOLUTIONS
SOCIETY OF ACTUARIES EXAM FM FINANCIAL MATHEMATICS EXAM FM SAMPLE SOLUTIONS This set of sample questios icludes those published o the iterest theory topic for use with previous versios of this examiatio.
More informationNotes on Expected Revenue from Auctions
Notes o Epected Reveue from Auctios Professor Bergstrom These otes spell out some of the mathematical details about first ad secod price sealed bid auctios that were discussed i Thursday s lecture You
More informationCalculation of the Annual Equivalent Rate (AER)
Appedix to Code of Coduct for the Advertisig of Iterest Bearig Accouts. (31/1/0) Calculatio of the Aual Equivalet Rate (AER) a) The most geeral case of the calculatio is the rate of iterest which, if applied
More informationChapter 8. Confidence Interval Estimation. Copyright 2015, 2012, 2009 Pearson Education, Inc. Chapter 8, Slide 1
Chapter 8 Cofidece Iterval Estimatio Copyright 2015, 2012, 2009 Pearso Educatio, Ic. Chapter 8, Slide 1 Learig Objectives I this chapter, you lear: To costruct ad iterpret cofidece iterval estimates for
More informationFixed Income Securities
Prof. Stefao Mazzotta Keesaw State Uiversity Fixed Icome Securities FIN4320. Fall 2006 Sample First Midterm Exam Last Name: First Name: Studet ID Number: Exam time is: 80 miutes. Total poits for this exam
More informationFixed Income Securities
Prof. Stefao Mazzotta Keesaw State Uiversity Fixed Icome Securities Sample First Midterm Exam Last Name: First Name: Studet ID Number: Exam time is: 80 miutes. Total poits for this exam is: 400 poits Prelimiaries
More informationA New Constructive Proof of Graham's Theorem and More New Classes of Functionally Complete Functions
A New Costructive Proof of Graham's Theorem ad More New Classes of Fuctioally Complete Fuctios Azhou Yag, Ph.D. Zhu-qi Lu, Ph.D. Abstract A -valued two-variable truth fuctio is called fuctioally complete,
More informationCHAPTER 2 PRICING OF BONDS
CHAPTER 2 PRICING OF BONDS CHAPTER SUARY This chapter will focus o the time value of moey ad how to calculate the price of a bod. Whe pricig a bod it is ecessary to estimate the expected cash flows ad
More informationENGINEERING ECONOMICS
ENGINEERING ECONOMICS Ref. Grat, Ireso & Leaveworth, "Priciples of Egieerig Ecoomy'','- Roald Press, 6th ed., New York, 1976. INTRODUCTION Choice Amogst Alteratives 1) Why do it at all? 2) Why do it ow?
More information. (The calculated sample mean is symbolized by x.)
Stat 40, sectio 5.4 The Cetral Limit Theorem otes by Tim Pilachowski If you have t doe it yet, go to the Stat 40 page ad dowload the hadout 5.4 supplemet Cetral Limit Theorem. The homework (both practice
More informationAnnual compounding, revisited
Sectio 1.: No-aual compouded iterest MATH 105: Cotemporary Mathematics Uiversity of Louisville August 2, 2017 Compoudig geeralized 2 / 15 Aual compoudig, revisited The idea behid aual compoudig is that
More informationSection 3.3 Exercises Part A Simplify the following. 1. (3m 2 ) 5 2. x 7 x 11
123 Sectio 3.3 Exercises Part A Simplify the followig. 1. (3m 2 ) 5 2. x 7 x 11 3. f 12 4. t 8 t 5 f 5 5. 3-4 6. 3x 7 4x 7. 3z 5 12z 3 8. 17 0 9. (g 8 ) -2 10. 14d 3 21d 7 11. (2m 2 5 g 8 ) 7 12. 5x 2
More informationEVEN NUMBERED EXERCISES IN CHAPTER 4
Joh Riley 7 July EVEN NUMBERED EXERCISES IN CHAPTER 4 SECTION 4 Exercise 4-: Cost Fuctio of a Cobb-Douglas firm What is the cost fuctio of a firm with a Cobb-Douglas productio fuctio? Rather tha miimie
More informationSolutions to Interest Theory Sample Questions
to Iterest Theory Sample Questios Solutio 1 C Chapter 4, Iterest Rate Coversio After 7.5 years, the value of each accout is the same: 7.5 7.5 0.04 1001 100e 1.336 e l(1.336) 7.5 0.0396 7.5 Solutio E Chapter
More informationMS-E2114 Investment Science Exercise 2/2016, Solutions
MS-E24 Ivestmet Sciece Exercise 2/206, Solutios 26.2.205 Perpetual auity pays a xed sum periodically forever. Suppose a amout A is paid at the ed of each period, ad suppose the per-period iterest rate
More informationAnomaly Correction by Optimal Trading Frequency
Aomaly Correctio by Optimal Tradig Frequecy Yiqiao Yi Columbia Uiversity September 9, 206 Abstract Uder the assumptio that security prices follow radom walk, we look at price versus differet movig averages.
More informationMath 124: Lecture for Week 10 of 17
What we will do toight 1 Lecture for of 17 David Meredith Departmet of Mathematics Sa Fracisco State Uiversity 2 3 4 April 8, 2008 5 6 II Take the midterm. At the ed aswer the followig questio: To be revealed
More information2.6 Rational Functions and Their Graphs
.6 Ratioal Fuctios ad Their Graphs Sectio.6 Notes Page Ratioal Fuctio: a fuctio with a variable i the deoiator. To fid the y-itercept for a ratioal fuctio, put i a zero for. To fid the -itercept for a
More informationCHAPTER 8 Estimating with Confidence
CHAPTER 8 Estimatig with Cofidece 8.2 Estimatig a Populatio Proportio The Practice of Statistics, 5th Editio Stares, Tabor, Yates, Moore Bedford Freema Worth Publishers Estimatig a Populatio Proportio
More informationCAPITAL PROJECT SCREENING AND SELECTION
CAPITAL PROJECT SCREEIG AD SELECTIO Before studyig the three measures of ivestmet attractiveess, we will review a simple method that is commoly used to scree capital ivestmets. Oe of the primary cocers
More informationEXERCISE - BINOMIAL THEOREM
BINOMIAL THOEREM / EXERCISE - BINOMIAL THEOREM LEVEL I SUBJECTIVE QUESTIONS. Expad the followig expressios ad fid the umber of term i the expasio of the expressios. (a) (x + y) 99 (b) ( + a) 9 + ( a) 9
More informationInstitute of Actuaries of India Subject CT5 General Insurance, Life and Health Contingencies
Istitute of Actuaries of Idia Subject CT5 Geeral Isurace, Life ad Health Cotigecies For 2017 Examiatios Aim The aim of the Cotigecies subject is to provide a groudig i the mathematical techiques which
More informationA point estimate is the value of a statistic that estimates the value of a parameter.
Chapter 9 Estimatig the Value of a Parameter Chapter 9.1 Estimatig a Populatio Proportio Objective A : Poit Estimate A poit estimate is the value of a statistic that estimates the value of a parameter.
More informationCourse FM Practice Exam 1 Solutions
Course FM Practice Exam 1 Solutios Solutio 1 D Sikig fud loa The aual service paymet to the leder is the aual effective iterest rate times the loa balace: SP X 0.075 To determie the aual sikig fud paymet,
More informationExam 2. Instructor: Cynthia Rudin TA: Dimitrios Bisias. October 25, 2011
15.075 Exam 2 Istructor: Cythia Rudi TA: Dimitrios Bisias October 25, 2011 Gradig is based o demostratio of coceptual uderstadig, so you eed to show all of your work. Problem 1 You are i charge of a study
More informationHopscotch and Explicit difference method for solving Black-Scholes PDE
Mälardale iversity Fiacial Egieerig Program Aalytical Fiace Semiar Report Hopscotch ad Explicit differece method for solvig Blac-Scholes PDE Istructor: Ja Röma Team members: A Gog HaiLog Zhao Hog Cui 0
More informationFINANCIAL MATHEMATICS
CHAPTER 7 FINANCIAL MATHEMATICS Page Cotets 7.1 Compoud Value 116 7.2 Compoud Value of a Auity 117 7.3 Sikig Fuds 118 7.4 Preset Value 121 7.5 Preset Value of a Auity 121 7.6 Term Loas ad Amortizatio 122
More informationOnline appendices from The xva Challenge by Jon Gregory. APPENDIX 10A: Exposure and swaption analogy.
APPENDIX 10A: Exposure ad swaptio aalogy. Sorese ad Bollier (1994), effectively calculate the CVA of a swap positio ad show this ca be writte as: CVA swap = LGD V swaptio (t; t i, T) PD(t i 1, t i ). i=1
More informationSCHOOL OF ACCOUNTING AND BUSINESS BSc. (APPLIED ACCOUNTING) GENERAL / SPECIAL DEGREE PROGRAMME
All Right Reserved No. of Pages - 10 No of Questios - 08 SCHOOL OF ACCOUNTING AND BUSINESS BSc. (APPLIED ACCOUNTING) GENERAL / SPECIAL DEGREE PROGRAMME YEAR I SEMESTER I (Group B) END SEMESTER EXAMINATION
More informationOsborne Books Update. Financial Statements of Limited Companies Tutorial
Osbore Books Update Fiacial Statemets of Limited Compaies Tutorial Website update otes September 2018 2 f i a c i a l s t a t e m e t s o f l i m i t e d c o m p a i e s I N T R O D U C T I O N The followig
More informationIntroduction to Probability and Statistics Chapter 7
Itroductio to Probability ad Statistics Chapter 7 Ammar M. Sarha, asarha@mathstat.dal.ca Departmet of Mathematics ad Statistics, Dalhousie Uiversity Fall Semester 008 Chapter 7 Statistical Itervals Based
More information2. Find the annual percentage yield (APY), to the nearest hundredth of a %, for an account with an APR of 12% with daily compounding.
1. Suppose that you ivest $4,000 i a accout that ears iterest at a of 5%, compouded mothly, for 58 years. `Show the formula that you would use to determie the accumulated balace, ad determie the accumulated
More information1 + r. k=1. (1 + r) k = A r 1
Perpetual auity pays a fixed sum periodically forever. Suppose a amout A is paid at the ed of each period, ad suppose the per-period iterest rate is r. The the preset value of the perpetual auity is A
More information1 Estimating sensitivities
Copyright c 27 by Karl Sigma 1 Estimatig sesitivities Whe estimatig the Greeks, such as the, the geeral problem ivolves a radom variable Y = Y (α) (such as a discouted payoff) that depeds o a parameter
More informationChapter Six. Bond Prices 1/15/2018. Chapter 4, Part 2 Bonds, Bond Prices, Interest Rates and Holding Period Return.
Chapter Six Chapter 4, Part Bods, Bod Prices, Iterest Rates ad Holdig Period Retur Bod Prices 1. Zero-coupo or discout bod Promise a sigle paymet o a future date Example: Treasury bill. Coupo bod periodic
More information1 ECON4415: International Economics Problem Set 4 - Solutions
ECON445: Iteratioal Ecoomics Problem Set 4 - Solutios. I Moopolistic competitio. Moopolistic competitio is a market form where May rms producig di eret varieties. Each rm has moopoly power over its ow
More informationChapter Four Learning Objectives Valuing Monetary Payments Now and in the Future
Chapter Four Future Value, Preset Value, ad Iterest Rates Chapter 4 Learig Objectives Develop a uderstadig of 1. Time ad the value of paymets 2. Preset value versus future value 3. Nomial versus real iterest
More informationClass Notes for Managerial Finance
Class Notes for Maagerial Fiace These otes are a compilatio from:. Class Notes Supplemet to Moder Corporate Fiace Theory ad Practice by Doald R. Chambers ad Nelso J. Lacy. I gratefully ackowledge the permissio
More informationExam 1 Spring 2015 Statistics for Applications 3/5/2015
8.443 Exam Sprig 05 Statistics for Applicatios 3/5/05. Log Normal Distributio: A radom variable X follows a Logormal(θ, σ ) distributio if l(x) follows a Normal(θ, σ ) distributio. For the ormal radom
More informationMATH : EXAM 2 REVIEW. A = P 1 + AP R ) ny
MATH 1030-008: EXAM 2 REVIEW Origially, I was havig you all memorize the basic compoud iterest formula. I ow wat you to memorize the geeral compoud iterest formula. This formula, whe = 1, is the same as
More informationad covexity Defie Macaulay duratio D Mod = r 1 = ( CF i i k (1 + r k) i ) (1.) (1 + r k) C = ( r ) = 1 ( CF i i(i + 1) (1 + r k) i+ k ) ( ( i k ) CF i
Fixed Icome Basics Cotets Duratio ad Covexity Bod Duratios ar Rate, Spot Rate, ad Forward Rate Flat Forward Iterpolatio Forward rice/yield, Carry, Roll-Dow Example Duratio ad Covexity For a series of cash
More information43. A 000 par value 5-year bod with 8.0% semiaual coupos was bought to yield 7.5% covertible semiaually. Determie the amout of premium amortized i the 6 th coupo paymet. (A).00 (B).08 (C).5 (D).5 (E).34
More informationLESSON #66 - SEQUENCES COMMON CORE ALGEBRA II
LESSON #66 - SEQUENCES COMMON CORE ALGEBRA II I Commo Core Algebra I, you studied sequeces, which are ordered lists of umbers. Sequeces are extremely importat i mathematics, both theoretical ad applied.
More informationJournal of Statistical Software
JSS Joural of Statistical Software Jue 2007, Volume 19, Issue 6. http://www.jstatsoft.org/ Ratioal Arithmetic Mathematica Fuctios to Evaluate the Oe-sided Oe-sample K-S Cumulative Samplig Distributio J.
More informationDate: Practice Test 6: Compound Interest
: Compoud Iterest K: C: A: T: PART A: Multiple Choice Questios Istructios: Circle the Eglish letter of the best aswer. Circle oe ad ONLY oe aswer. Kowledge/Thikig: 1. Which formula is ot related to compoud
More information5 Statistical Inference
5 Statistical Iferece 5.1 Trasitio from Probability Theory to Statistical Iferece 1. We have ow more or less fiished the probability sectio of the course - we ow tur attetio to statistical iferece. I statistical
More informationD 1 D 2 D 3 D. Stock Valuation Draft: 10/24/2004. Stock Valuation
Stock aluatio aft: /4/4 Stock aluatio This web documet shows how we ca use the techiques developed to hadle time value poblems to value stock. Two documets that we will efe to occasioally ae Compoudig
More informationCourse FM/2 Practice Exam 1 Solutions
Course FM/2 Practice Exam 1 Solutios Solutio 1 D Sikig fud loa The aual service paymet to the leder is the aual effective iterest rate times the loa balace: SP X 0.075 To determie the aual sikig fud paymet,
More informationSTAT 135 Solutions to Homework 3: 30 points
STAT 35 Solutios to Homework 3: 30 poits Sprig 205 The objective of this Problem Set is to study the Stei Pheomeo 955. Suppose that θ θ, θ 2,..., θ cosists of ukow parameters, with 3. We wish to estimate
More informationCombining imperfect data, and an introduction to data assimilation Ross Bannister, NCEO, September 2010
Combiig imperfect data, ad a itroductio to data assimilatio Ross Baister, NCEO, September 00 rbaister@readigacuk The probability desity fuctio (PDF prob that x lies betwee x ad x + dx p (x restrictio o
More information. The firm makes different types of furniture. Let x ( x1,..., x n. If the firm produces nothing it rents out the entire space and so has a profit of
Joh Riley F Maimizatio with a sigle costrait F3 The Ecoomic approach - - shadow prices Suppose that a firm has a log term retal of uits of factory space The firm ca ret additioal space at a retal rate
More informationAppendix 1 to Chapter 5
Appedix 1 to Chapter 5 Models of Asset Pricig I Chapter 4, we saw that the retur o a asset (such as a bod) measures how much we gai from holdig that asset. Whe we make a decisio to buy a asset, we are
More informationThe material in this chapter is motivated by Experiment 9.
Chapter 5 Optimal Auctios The material i this chapter is motivated by Experimet 9. We wish to aalyze the decisio of a seller who sets a reserve price whe auctioig off a item to a group of bidders. We begi
More informationUnbiased estimators Estimators
19 Ubiased estimators I Chapter 17 we saw that a dataset ca be modeled as a realizatio of a radom sample from a probability distributio ad that quatities of iterest correspod to features of the model distributio.
More informationof Asset Pricing R e = expected return
Appedix 1 to Chapter 5 Models of Asset Pricig EXPECTED RETURN I Chapter 4, we saw that the retur o a asset (such as a bod) measures how much we gai from holdig that asset. Whe we make a decisio to buy
More informationT4032-MB, Payroll Deductions Tables CPP, EI, and income tax deductions Manitoba Effective January 1, 2016
T4032-MB, Payroll Deductios Tables CPP, EI, ad icome tax deductios Maitoba Effective Jauary 1, 2016 T4032-MB What s ew as of Jauary 1, 2016 The major chages made to this guide sice the last editio are
More informationModels of Asset Pricing
APPENDIX 1 TO CHAPTER 4 Models of Asset Pricig I this appedix, we first examie why diversificatio, the holdig of may risky assets i a portfolio, reduces the overall risk a ivestor faces. The we will see
More informationModels of Asset Pricing
APPENDIX 1 TO CHAPTER4 Models of Asset Pricig I this appedix, we first examie why diversificatio, the holdig of may risky assets i a portfolio, reduces the overall risk a ivestor faces. The we will see
More information