ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.3 : (a) In the M / M / 1 queue

ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.3 : (a) In the M / M / 1 queue that happens with randomness, let State 0 = the queue and server are empty, State 1 = the server is in use and the queue is empty, State 2 = the server is in use and 1 is in the queue, State 3 = the server is in use and 2 in the queue. Let P (0) = probability of State 0, P (1) = probability of State 1, P (2) = probability of State 2, P (3) = probability of State 3 and so on. If c = constant, P (1) = c P (0), P (2) = c [ c P (0) ], P (3) = c { c [ c P (0) ] }, write an equation that involves P (N), P (N + 1) and c. (b) Let L = market price of risk, r = riskless rate, m = expected return, s = volatility. Given that L = (m - r) / s related to oil prices, expected return = 12 %, s = 20 %, riskless rate = 8 %, calculate the market price of risk.

Question Posted / kangchuentat

1 Answers
2257 Views
I also Faced
E-Mail Answers

ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.3 : (a) In the M / M / 1 queue that happens with r..

Answer / kangchuentat

ACCOUNTING AND FINANCIAL ENGINEERING - ANSWER 34.3 : (a) P (1) = c P (0), P (2) = c [ c P (0) ] = c P (1), P (3) = c { c [ c P (0) ] } = c P (2). Then P (N + 1) = c P (N). (b) Let m = 12 %, r = 8 %, s = 20 %, then L = (m - r) / s = (12 - 8) / 20 = 4 / 20 = 1 / 5. 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.

Is This Answer Correct ?

0 Yes

0 No

Post New Answer

More Chemical Engineering Interview Questions

What is pneumatic conveying?

0 Answers

ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.6 : In a random walk, a stochastic process starts off with a score of A. This is a score for a chemical engineering test. At each discrete event, there is probability p chance you will increase your score by B and a (1 - p) chance you will decrease your score by C. The event happens T times. Let D = expected value of score. (a) Form an equation of D as a function of A, B, C, T and p. (b) Find the value of D if A = 60, B = 1, C = -1, T = 50, p = 0.5.

1 Answers

sir,please give me some exam paper for referance. Thanks & Regards,

0 Answers ONGC,

Explain what are some typical applications for glass-lined reactors?

0 Answers

need the type of technical questions in written test

0 Answers

Explain some good strategies for curing tube vibration in shell and tube exchangers?

0 Answers

Are there any methods of preventing cracking of carbon steel welds in refining environments?

0 Answers

QUANTUM CHEMISTRY AND CHEMICAL ENGINEERING - EXAMPLE 31.2 : (a) Let | - > = 1 | x > + 0 | y >, | | > = 0 | x > + 1 | y >. Find the value of 2 | x > + 3 | y > in term of | - > and | | >. (b) Let m to be the reduced mass. Find the value of m in term of Ma and Mb where 1 / m = 1 / Ma + 1 / Mb.

1 Answers

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?

1 Answers

i want to knowwhat kind of questions in interview in adnoc?

0 Answers

what is isochronus and droop speed?

0 Answers

Jspl question paper for freshers requirements chemical engineering diploma

0 Answers

For more Chemical Engineering Interview Questions Click Here