Question

In: Statistics and Probability

A start-up company has 2000 investors, that company loses investors at a rate of 10 per...

A start-up company has 2000 investors, that company loses investors at a rate of 10 per year. Every time the company loses an investor, the company gets a loss of $200,000. For every investor that remains the company makes a profit of $2,000. Let F be the total earnings the company makes in a year, and X be the number of investors the company loses.

1)Write a function that calculates yearly earnings F as a function of X

2)Find P(F < 0), the probability that earnings are negative

3)E[F]

4)What is the probability that the company loses exactly 5 investors in a given year, given that they have not lost any investors in the first half of the year

Solutions

Expert Solution

TThank you.


Related Solutions

A start-up company has 2000 investors, that company loses investors at a rate of 10 per...
A start-up company has 2000 investors, that company loses investors at a rate of 10 per year. Every time the company loses an investor, the company gets a loss of $200,000. For every investor that remains the company makes a profit of $2,000. Let F be the total earnings the company makes in a year, and X be the number of investors the company loses. 1)Write a function that calculates yearly earnings F as a function of X 2)Find P(F...
“Every young company or start-up aims at convincing investors from the potential of its basic business...
“Every young company or start-up aims at convincing investors from the potential of its basic business idea…. In the early stages, this might be both, Business Angels and Venture Capitalists, whereas bank financing is not worth considering”. Critically analyse this statement, supporting the discussion with the literature. Research and discuss how non-tech companies may be different in sources of financing.Include relevant players involved. Discuss three ways in which the financial performance for technology-oriented ventures can be assessed.
A tech start-up company has just become public. It just paid $3 dividend per share, which will grow 10% for the next two dividends.
Please show all work and include:  i) timeline, ii) equation set up, iii) answer visibly circled or highlighted.A tech start-up company has just become public. It just paid $3 dividend per share, which will grow 10% for the next two dividends. Afterwards, the dividends will level off and grow at 4% per year forever. If the investors require 6% return on similar investments, what is the price of stock?Answer:
Car A has a mass of 2000 kg and speed of 10 miles per hour. Car...
Car A has a mass of 2000 kg and speed of 10 miles per hour. Car B has mass of 1000 kg and speed of 30 miles per hour. The two cars collide to each other and stick together after collision in three different situations. Calculate the velocity of the two cars after the collision. 1. Car A moves East and car B moves West and had a head to head collision. Calculate the velocity of the two cars after...
Suppose you start up a company that has the developed a drug that is supposed to...
Suppose you start up a company that has the developed a drug that is supposed to increase IQ.   You know that the standard deviation of IQ in the general population is 45. You test your drugs on 36 patients and obtain I mean IQ of 103. Using a alpha value of 0.05, is this IQ significantly different from the population mean of 100?
Suppose you start up a company that has developed a drug that is supposed to increase...
Suppose you start up a company that has developed a drug that is supposed to increase IQ. You know that the standard deviation of IQ in the general population is 15. You test your drug on 36 patients and obtain a mean IQ of 102.96. Using an alpha value of 0.05, is this IQ significantly different than the population mean of 100? (Two Tailed) State Null and Alternate Hypotheses. Apply test. Write your conclusion using critical value approach and p...
The rate of economic growth per capita in France from 1996 to 2000 was 1.9% per...
The rate of economic growth per capita in France from 1996 to 2000 was 1.9% per year, while in Korea over the same period it was 4.2%. Per capita real GDP was $28,900 in France in 2003, and $12,700 in Korea. Assume the growth rates for each country remain the same. Compute the doubling time for France’s per capita real GDP. Compute the doubling time for Korea’s per capita real GDP. What will France’s per capita real GDP be in...
You owe 2000 dollars on your credit card which has an interest rate of 18% per...
You owe 2000 dollars on your credit card which has an interest rate of 18% per year compounded monthly. If you plan to pay it off in 4 years, what are your monthly payments? 2 decimals What are the total payments? Round to nearest whole dollar. How much total interest is paid? Nearest whole dollar. What is the unpaid balance after 1 year? Round to nearest whole dollar.
Issue 50,000 common shares at $10 per share to private investors. Liam currently has 100,000 common...
Issue 50,000 common shares at $10 per share to private investors. Liam currently has 100,000 common shares outstanding, with his wife holding half and Liam holding half. He also has 5,000 preferred shares outstanding. They are all owned by his father and are cumulative, paying a dividend of $4 per share. For the first time, no dividends were paid last year. It would be expected that a $100,000 dividend would be declared on November 1 of this year with a...
Past experience indicates that because of low morale, a company loses 20 hours a year per...
Past experience indicates that because of low morale, a company loses 20 hours a year per employee due to lateness and abstenteeism. Assume that the standard deviation of the population is 6 and normally distributed. The HR department implemented a new rewards system to increase employee morale, and after a few months it collected a random sample of 20 employees and the annualized absenteeism was 14. Could you confirm that the new rewards system was effective with a 90% confidence?...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT