Suppose that you inherit $10,000. The will states how you must invest the money. Some (or all) of the money must be invested in stocks and bonds. The requirements are that at least $2000 be invested in bonds, with expected returns of $0.080 per dollar, and at least $1000 be invested in stocks, with expected returns of $0.13 per dollar. Because the stocks are medium risk, the final stipulation requires that the investment in bonds should never be less than the investment in stocks. How should the money be invested so as to maximize your expected returns? To maximize the expected returns, invest$ in bonds and $ in stocks.
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
Suppose that you inherit $10,000. The will states how you must invest the money. Some (or all) of the money must be invested in stocks and bonds. The requirements are that at least $2000 be invested in bonds, with expected returns of $0.080 per dollar, and at least $1000 be invested in stocks, with expected returns of $0.13 per dollar. Because the stocks are medium risk, the final stipulation requires that the investment in bonds should never be less than the investment in stocks. How should the money be invested so as to maximize your expected returns? To maximize the expected returns, invest$ in bonds and $ in stocks.
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