[4F-13] Suppose that waiting time until the next claim is exponentially distributed with mean of 4 days. For last 2 days, there have been no claims. Calculate the probability that waiting time until the next claim will exceed 4 more days (6 days in total). (Round to 4 decimals)

The probability that waiting time until the next claim will exceed 4 more days i.e. P(X>6/X>2) = 0.3679

Step-by-step explanation:

From the given information:

Let consider X to be a random variable that follows an exponential distribution fo the waiting time.

Then; since the mean is distributed between 1 - 4 days

Thus:

The objective is to determine:

Recall that:

= 0.3678794412

To four decimal places; we have:

The probability that waiting time until the next claim will exceed 4 more days i.e. P(X>6/X>2) = 0.3679

answer: what is the conflict?

step-by-step explanation:

*what has happened to new york city?

*what is in the time capsule?

* what did the kidz see that gave them hope?

*what will they do with what they find?

* how will they save the city?

* what challenges will they face along the way?

*what big choice will they make at the climax of the story?

* what lesson do they learn at the end of the story?

required rate of return = 0.166 = 16.6%

step-by-step explanation:

under the capital asset pricing model (capm), the required or expected rate of return for a particular security or asset is given using the formula:

required rate of return = risk-free rate + beta*(market risk premium)

we are given that;

risk-free rate = 4% = 0.04

beta = 1.4

market risk premium = 9% = 0.09

we simply plug these values into the above formula;

required rate of return = 0.04 + 1.4*(0.09)

required rate of return = 0.04 + 0.126

required rate of return = 0.166 = 16.6%