Questions
1, Oldhat Financial starts its first day of operations with $9 million in capital. A total...

1, Oldhat Financial starts its first day of operations with $9 million in capital. A total of $130 million in check-able deposits are received. The bank makes a $25 million commercial loan and another $50 million in mortgages, with the following term: 200 standard 30-year, fixed-rate mortgages with a nominal annual rate of 5.25%, each for $250000. What does balance sheet look like? How well capitalized is that bank? Calculate the risk-weighted assets and risk-weighted capital ratio after Oldhat’s first day.

2, Early the next day the bank invests $50 millions of its excess reserves in commercial loan. Later that day, terrible news hits the mortgage markets, and mortgage rates jump to 13%, implying a present value of its current mortgage holdings of $124798 per mortgage. Bank regulators force Oldhat to sell its mortgages to recognize the fair market value. What does Oldhat balance sheet look like? How do these events affect its capital position?

3, To avoid insolvency, regulators decide to provide the bank with $25 million in bank capital. However, the bad news about the mortgages is featured in the local newspaper, causing a bank run. As A RESULT, $30 millions in deposits is withdrawn. Show the effects of the capital injection and bank run on the balance sheet. Was the capital injection enough to stabilize the bank? If the bank regulators decide that the bank needs a capital ratio of 10% to prevent further runs on the bank, how much of an additional capital injection is required to reach a 10% capital ratio?

In: Accounting

4/ A quality control inspector has determined that 0.25% of all parts manufactured by a particular...

4/ A quality control inspector has determined that 0.25% of all parts manufactured by a particular machine are defective. If 50 parts are randomly selected, find the probability that there will be at most one defective part.

5/ A fair die is rolled 10 times. Compute the probability that a “one” appears exactly once.

6/ If two dice are tossed six times, find the probability of obtaining a sum of 7 two or three times.

7/ A machine produces parts of which 0.2% are defective. If a random sample of ten parts produced by this machine contains two or more defectives, the machine is shut down for repairs. Find the probability that the machine will be shut down for repairs based on this sampling plan.

8/ It was reported in a medical journal that about 70% of the individuals needing a kidney transplant find a suitable donor when they turn to registries of unrelated donors. Assume that a group of ten individuals needing a kidney transplant. Let x represent the number of individuals needing a kidney transplant who will find a suitable donor among the registries of unrelated donors.

a) Find the probability that all ten will find a suitable donor among the registries of unrelated donors.

b) Find the probability that at least eight will find a suitable donor among the registries of unrelated donors.

In: Statistics and Probability

To prepare for the Week 2 Assessment, consider a past or current professional experience where a...

To prepare for the Week 2 Assessment, consider a past or current professional experience where a culture change was needed.

Using the Organizational Change Chart, outline information about the experience and organization following Kotter’s 8-Step to Change Model as a guiding line.

Kotter's 8-Step Change Model Step One: Create Urgency. Step Two: Form a Powerful Coalition. Step Three: Create a Vision for Change. Step Four: Communicate the Vision. Step Five: Remove Obstacles. Step Six: Create Short-Term Wins. Step Seven: Build on the Change. Step Eight: Anchor the Changes in Corporate Culture.

In: Operations Management

The prosecutor's fallacy is misunderstanding or confusion of two different conditional probabilities: (1) the probability that...

The prosecutor's fallacy is misunderstanding or confusion of two different conditional probabilities: (1) the probability that a defendant is innocent, given that forensic evidence shows a match; (2) the probability that forensics shows a match, given that a person is innocent. The prosecutor's fallacy has led to wrong convictions and imprisonment of some innocent people. Lucia de Berk is a nurse who was convicted of murder and sentenced to prison in the Netherlands. Hospital administrators observed suspicious deaths that occurred in hospital wards where de Berk had been present. An expert testified that there was only one chance in 342 million that her presence was a coincidence. However, mathematician Richard Gill calculated the probability to be closer to 1/50, or possibly as low as 1/5. The court used the probability that the suspicious deaths could have occurred with de Berk present, given that she was innocent. The court should have considered the probability that de Berk is innocent, given that the suspicious deaths occurred when she was present. This error of the prosecutor's fallacy is subtle and can be very difficult to understand and recognize, yet it can lead to the imprisonment of innocent people.

What are your thoughts on this? Does the distinction between the two conditional probabilities make sense? Do you have questions for the expert or mathematician?

In: Statistics and Probability

Below are the short-run average-total-cost schedules for three plants of different size that a firm might...

Below are the short-run average-total-cost schedules for three plants of different size that a firm
might build to produce its product. Assume that these are the only possible sizes of plants that the
firm might build. (10 points)
a) What is the long-run average-cost schedule for the firm? Show it in the second table below.
Plant size X Plant size Y Plant size Z
Output ATC Output ATC Output ATC
5 $10 5 $13 5 $72
10 9 10 12 10 65
15 8 15 11 15 52
20 7 20 10 20 41
25 6 25 8 25 33
30 9 30 7 30 20
35 12 35 9 35 15
40 18 40 12 40 14
45 20 45 17 45 12
50 23 50 19 50 14
55 29 55 25 55 20
60 31 60 33 60 30
Output Average cost
5 $_____
10 _____
15 _____
20 _____
25 _____
30 _____
35 _____
40 _____
45 _____
50 _____
55 _____
60 _____
b) For what output levels should the firm build plant X, plant Y, and plant Z?

In: Economics

Consider the following model: maximize 40x1 +50x2 subject to: x1 +2x2 ≤ 40 4x1 +3x2 ≤...

Consider the following model: maximize 40x1 +50x2 subject to: x1 +2x2 ≤ 40 4x1 +3x2 ≤ 120 x1, x2 ≥ 0 The optimal solution, determined by the two binding constraints, is x1 = 24, x2 = 8, OFV∗ = 1,360. Now consider a more general objective function, c1x1 + c2x2. Perform a sensitivity analysis to determine when the current solution remains optimal in the following cases: (i) both c1 and c2 may vary; (ii) c2 = 50, c1 may vary; (iii) c1 = 40, c2 may vary. Suppose the RHS of the second constraint increases by an amount ∆b. (It is now 120 + ∆b.) Solve the two equations for x1 and x2 in terms of ∆b, and hence determine its shadow price.

In: Advanced Math

Describe your plan or countermeasures, regarding to developing a Cost Estimating Relationship, as an engineer in...

Describe your plan or countermeasures, regarding to developing a Cost Estimating Relationship, as an engineer in controlling the effects/impacts given by the following items from the perspective of Engineering Economics

- Direct labor hours

-. Machine hours

-. Number of units

-. Number of production runs

-. Number of orders

In: Mechanical Engineering

Replicates are repetitions of the design matrix used to increase design resolution, while repeat measurements are...

Replicates are repetitions of the design matrix used to increase design resolution, while repeat measurements are multiple measurements within the runs used to mitigate non normal data when run averages approach 30 samples and utilize the central limit theorem.

True or False

In: Statistics and Probability

If the federal government runs a series of budget surpluses, we can expect that the: Group...

If the federal government runs a series of budget surpluses, we can expect that the:

Group of answer choices

The supply curve of bond shifts to the right

. The demand curve of bond shifts to the right.

The supply curve of bond shifts to the left.

The demand curve of bond shifts to the left.

In: Economics

Suppose r0=0x0F0F0F0F and r1=0xFEDCBA98, find the result of the following operations. Note that the below instructions...

Suppose r0=0x0F0F0F0F and r1=0xFEDCBA98, find the result of the following operations. Note that the below instructions are not part of a program. Each instruction runs independently, without influencing each other.

i) EOR R4,R1,R0 ii) ORR R4,R1,R0

In: Computer Science