Suppose that a certain country conducted tests of a certain type of bomb in 2009 and 2013?, and another?country'sdefence ministry estimated their power at between 4 and 8 kilotonnes of a certain explosive in 2009 and between 8 and 9 kilotonnes of the explosive in 2013. ?"The power of the? country's bomb tests increased between 2009 and 2013," stated a commentator. Assume that the ranges given by the second?country'sdefence ministry represent the ranges within which the actual power of the tests lies with a probability of 0.8. Also assume that the defence? ministry's estimates are Normally distributed. Complete parts? (a) and? (b) below.

a) What is the probability that the actual power of the 2009 test was greater than 9 kilotonnes of? explosive? (round to four decimal places)

b) What is the probability that the actual power of the test was higher in 2009 than in 2013? (round to four decimal places)

An engineer studying the tensile strength of a composite material knows that tensile strength is approximately normally distributed with σ = 60 psi. A random sample of 20 specimens has a mean tensile strength of 3450 psi.

(a) Test the hypothesis that the mean tensile strength is 3500 psi, using α = 0.01

(b) What isthe smallest level of significance at which you would be willing to reject the null hypothesis?

(c) What is the β error for the test in part (a) if the true mean tensile strength is 3470 psi?

(d) Suppose that you wanted to reject the null hypothesis with probability of at least 0.8 if mean strength μ = 3470 psi. What sample size would be necessary?

(e) Explain how you would answer the question in part (a) with a two sided CI on mean tensile strength.

QUESTION 42

A company has a proposed 2-year project with the cash flows shown below and would like to calculate the NPV of this project so that they can decide whether to pursue the project or not. The company has a target capital structure of 60% equity and 40% debt. The beta for this firms stock is 0.8, the risk-free rate is 4.8, and the expected market risk premium is 6%. The bonds for this company pay interest semiannually and have a coupon interest rate of 9%, 11 years to maturity, a face value of $1,000, and a current price of 1,137.7. If the corporate tax rate is 38%, what is the NPV of the proposed project for this firm? (Answer to the nearest dollar, but do not use a dollar sign).

  

1-Some money was held at a 10-month interest rate with a 15% interest rate. If this money was kept at an interest rate of 340 days with an interest rate of 18%, 1944 lira would provide more interest income. Accordingly, what is the amount of money invested in interest?

2-Some capital was kept in the bank for 225 days with an 18% interest rate. Since the total amount of money in the account is 68507.75 lira at the end of this period, what is the amount of capital invested in interest?

3-42500 Turkish liras was deposited in the bank for 0.8 years with an 18% interest rate. At the end of this period, all of the money in the account was taken and deposited in another bank for 7 months with an interest rate of 21%. At the end of 7 months, how much is the whole money?

Games, Inc. is considering selling tennis racquets. It can use a proven technology to produce the racquets. This method will produce a $24M cashflow next year. The firm could also choose a new experimental method for producing racquets. This method has lower costs if it works. If the new technology works it will produce a cashflow of $28M next year. If it is unsuccessful it will produce a zero cashflow next year. The probability of success is 0.8 and the cashflows are uncorrelated with the market return. Both methods require a $20M dollar investment today. There are no cashflows after next year. The risk-free rate is 10%. The market price of risk is 8.4%.

(a) What is the NPV of the two projects? Which project should an all equity firm choose? Hint. You will have to determine the discount rate for both technologies [5 Marks]

Lack of sleep has been associated with psychological distress in adolescents. In a phone survey from 2013 by the National Sleep Foundation there were about 250 respondents per country aged 25-55 years old. It was found that on average young adults sleep 7.2 hours with standard deviation of 0.8 hour.

1. What is the probability that young adults sleep less than 8.08 hours?

3. What is the probability that young adults sleep more than 8.48 hours?

4. At least how many hours do young adults sleep who are among the 15 % with the longest hours of sleep?

5. About 11 % of young adults sleep fewer hours than ______

The amount of time people spend exercising in a given week follows a normal distribution with a mean of 3.8 hours per week and a standard deviation of 0.8 hours per week.

i) Which of the following shows the shaded probability that a person picked at random exercises less than 2 hours per week?

a.    b.   


ii) What is the probability that a person picked at random exercises less than 2 hours per week? (round to 4 decimal places)    

iii) Which of the following shows the shaded probability that a person picked at random exercises between 2 and 4 hours per week?

a.     b.    


iv) What is the probability that a person picked at random exercises between 2 and 4 hours per week? (round to 4 decimal places)

Reagent A undergoes an essentially irreversible isomerization reaction that obeys first-order kinetics. A --> B Both A and B are liquids at room temperature and both have extremely high boiling points. Pure A at 20^oC is fed into the reactor.

Data:

Reaction rate expression: r = k.C_A

Rate constant at 163 °C = 0.8 hr^-1

Activation energy = 30,000 cal/gmole

Heat of reaction = — 83 cal/g

Molecular weight = 250

C_pA=C_pB=0.5 cal/g.^oC p_A=p_B= 0.9 g/cm3

a) Determine the CSTR volume and heat transfer rate necessary to produce 150 kg/h of B with 60% conversion of A if the reactor is operated at 160^oC.

b) Calculate the CSTR volume and temperature to achieve the same conversion if the reactor is operated adiabatically