1) Suppose that next year the U.S. will be in one of the following economic conditions: Boom, Moderate Growth, Recession, or Depression. The probability that each economic condition will occur, and that a jewelry store will earn profits within that broader economic condition are listed below:

Economics condition | Profit | probability |

Boom | 400000 | 0,4 |

moderategrowth | 300000 | 0,3 |

recession | 100000 | 0,2 |

depression | -500000 | 0,1 |

2) The standard deviation of the jewelry store’s profits next year (rounded to the nearest dollar) is ?

3) The expected profit of the jewelry store during the next year is?

4) What is the complete set of numbers for which f(*x*) = *x*^{3} + 2*x*^{2} – *x* is concave?

5) Today you deposited $10,000 in a savings account that pays 6% annual interest, compounded semiannually. In 5 years, how much money will you have in your account (rounded to the nearest dollar)?

6) Today you put $1000 in the bank. Your bank pays 5% interest, continuously compounded. In 3 years, how much money will you have in the bank (rounded to the nearest dollar)?

7) Suppose that you draw two cards from a deck. After drawing the first card, you **do not** put the first card back in the deck. What is the probability (rounded to the nearest ten thousandth) that both cards are diamonds?

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