1. George Gau, In., can invest in one of two mutually exclusive, one-year projects requiring equal initial outlays. The two proposals have the following discrete probability distribu- tions of net cash inflows for the first year: PROJECT A PROJECT B PROBABILITY CASH FLOW PROBABILITY CASH FLOW 0.20 0.30 $2,000 4,000 0.10 $2,000 4,000 6,000 8,000 0.40 0.40 6,000 8,000 0.30 0.20 0.10 1.00 1.00 a. Without calculating a mean and a coefficient of variation, can you select the better pro- posal, assuming a risk-averse management? b. Verify your intuitive determination.

1. George Gau, In., can invest in one of two mutually exclusive, one-year projects requiring equal initial outlays. The two proposals have the following discrete probability distribu- tions of net cash inflows for the first year: PROJECT A PROJECT B PROBABILITY CASH FLOW PROBABILITY CASH FLOW 0.20 0.30 $2,000 4,000 0.10 $2,000 4,000 6,000 8,000 0.40 0.40 6,000 8,000 0.30 0.20 0.10 1.00 1.00 a. Without calculating a mean and a coefficient of variation, can you select the better pro- posal, assuming a risk-averse management? b. Verify your intuitive determination.

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MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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