ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.1 : (i) In the pricing of engineering bonds, 3 sets of data for Portfolio Value, Probability, Senior Tranche and Junior Tranche are : $2000, 81 %, $1000, $1000; $1000, 18 %, $1000, $0; $0, 1 %, $0, $0. By assuming independent defaults, find the price for : (a) Senior Tranche; (b) Junior Tranche. (ii) Assuming statistical independence of the values in the sample, the standard deviation of the mean (S) is related to the standard deviation of the distribution (s) by : N x S x S = s x s, where N is the number of observations in the sample used to estimate the mean. In a drug development project, let s = 1. Find the value of S if such a similar project is performed 100 times.
ACCOUNTING AND FINANCIAL ENGINEERING - ANSWER 34.1 : (i)(a) Price for Senior Tranche = 99 % x $1000 + 1 % x $0 = $990. (b) Price for Junior Tranche = 81 % x $1000 + 19 % x $0 = $810. (ii) Let N = 100, s = 1. Then S x S = s x s / N = 1 / 100, S = 1 / 10. The answer is given by Kang Chuen Tat; PO Box 6263, Dandenong, Victoria VIC 3175, Australia; SMS +61405421706; chuentat@hotmail.com; http://kangchuentat.wordpress.com.
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ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.14 : For a formula of y = [ 1 - 1 / (1 + r) ^ n ] / r, let y = present value, r = interest rate / year, n = number of years to future value of 1 : (a) Find a simple mathematical relationship of y as a function of r when n = 1 million years. (b) What is the present value of $10000, if the annual discount rate is 10 %, forever?
ENGINEERING MECHANIC - EXAMPLE 15.3 : A biochemical trolley of mass 15 kg is towing a trailer of mass 5 kg along a straight horizontal pathway. The trailer and the trolley are connected by a light inextensible tow-bar. The engine of the trolley exerts a driving force of magnitude 100 N. The trailer and the trolley experience resistances of magnitude 10 N and 30 N respectively. (a) Form 2 equations with unknowns T and a, that represents the equilibrium for the 2 systems of the trolley and trailer. (b) Solve the simultaneous equations from the 2 equations that are obtained in part (a) of this question. T is the tension of the tow-bar and a is the acceleration.
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ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.20 : Assume an engineer buys a $1 bond in period T while the nominal interest rate is R. The inflation rate at T + 1 is anticipated to be I. (a) If the bond is redeemed in period T + 1, how much money will the buyer engineer receive, in term of R, which is not affected by inflation? (b) Find the present value, PV of the proceeds from the bond, in term of R and I. (c) If the bond is redeemed in period T + 1, calculate the real growth or real value of the money that the buyer engineer will receive, in term of r = real interest rate, which is affected by inflation. (d) From the answers in (b) and (c), find the values of x, y and z in the following Fisher equation : (1 + x) = (1 + y) / (1 + z), in term of r, R and I.
MICROBIOLOGICAL ENGINEERING - QUESTION 28.1 : In the calculation of the growth of bacteria, colony forming unit (CFU) in serial dilution is used. In a laboratory, viable count assay is used to estimate CFU. Formula applied is CFU / mL = (number of colonies x dilution) / (amount plated, in unit mL). Acceptable plate count is either between 20 and 200 or between 30 and 300 according to 2 different references. A wastewater sample of 200 ml is added to and mixed with 1.8 L of sterile water. Another 200 ml of the mixture is added to and mixed with 1.8 L of sterile water. (a) Calculate the dilution of first mixture and the dilution of the second mixture. (b) 100 microlitres of wastewater samples from the first mixture and the second mixture are placed separately on 2 different alga plates. The first plate has 250 colonies and the second plate has 23 colonies. Calculate the average CFU / mL.
Question 60 – During the landing process of an airplane, the velocity is constant at v. (a) If the displacement of the plane is x at time t, find the differential equation that relates t, x and v. (b) The plane has 2 parts of wheels – the front and the back, separated by a distance L. The front part of the wheel touches the land first, that allows the straight body of the plane to form an angle T with the horizontal land. If the vertical distance between the back part of the wheel and the horizontal land is y, find the equation of y as a function of L and T. (c) Find the differential equation that relates dy as a function of dt, v and sin T. (d) Find the differential equation that consist of dy as a function of y, L, v and dt. (e) Find the equation of y as a function of v, L, t and C where C is a constant. (f) When t = 0, prove that y = exp C as the initial value of y.
Explain can large temperature differences in vaporizers cause operational problems?
ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.24 : (a) The net present value of an engineering project is given by V. Let Q = summation of [ T / (1 + I) ^ N ] from N = A to N = B, where P = project cost, T = tax inflow, N = duration. If V = P + Q where P = -$1000, T = $275, I = 0.12 (means 12 % , capital cost of project per year), A = 1 year, B = 5 years, calculate the value of V. (b) The present value tax shields are W = $ (11.9725, 9.1486, 6.5579, 4.1811, 2.0005) in 5 beginning balances of an engineering project. Find the adjusted present value of the engineering project X, when X = V + (summation of the values of W).
Why is post-weld heat treatment (stress relieving) sometimes necessary for welded vessels?
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QUANTUM COMPUTING - EXAMPLE 32.5 : In quantum teleportation, let (C0 + D1) (00 + 11) = C000 + C011 + D100 + D111. Ba = 00 + 11, Bc = 10 + 01, Be = 00 - 11, Bm = 10 - 01. (a) Find the values of 00, 01, 10 and 11 in term of Ba, Bc, Be and Bm. (b) Prove by calculation that (C0 + D1) (00 + 11) = 0.5 [ Ba (C0 + D1) + Bc (C1 + D0) + Be (C0 - D1) + Bm (-C1 + D0) ].