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Tomorrow a sum of PhP10,000 will be invested at rate R. Tomorrow's rate is unknown at the moment, so suppose R has a uniform distribution from 0.02 to 0.04. The PhP10,000 will be compounded instantaneously for one year so U = h(R) = 10000e. a) Use the transformation technique to derive the pdf of U. b) Find E(U), the expected amount of the investment after one year.

Tomorrow a sum of PhP10,000 will be invested at rate R. Tomorrow's rate is unknown at the moment, so suppose R has a uniform distribution from 0.02 to 0.04. The PhP10,000 will be compounded instantaneously for one year so U = h(R) = 10000e. a) Use the transformation technique to derive the pdf of U. b) Find E(U), the expected amount of the investment after one year.

MATLAB: An Introduction with Applications
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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topic: functions of random variables

Tomorrow a sum of PhP10,000 will be invested at rate R. Tomorrow's rate is unknown at the moment, so suppose R has a uniform distribution from 0.02 to 0.04. The PhP10,000 will be compounded instantaneously for one year so U = h(R) = 10000e*. a) Use the transformation technique to derive the pdf of U. b) Find E(U), the expected amount of the investment after one year.
Transcribed Image Text:Tomorrow a sum of PhP10,000 will be invested at rate R. Tomorrow's rate is unknown at the moment, so suppose R has a uniform distribution from 0.02 to 0.04. The PhP10,000 will be compounded instantaneously for one year so U = h(R) = 10000e*. a) Use the transformation technique to derive the pdf of U. b) Find E(U), the expected amount of the investment after one year.
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