ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.6 : In a random walk, a stocha

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.

Question Posted / kangchuentat

1 Answers
2106 Views
I also Faced
E-Mail Answers

ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.6 : In a random walk, a stochastic process starts ..

Answer / kangchuentat

ACCOUNTING AND FINANCIAL ENGINEERING - ANSWER 34.6 : (a) D = A + T [ pB + (1 - p) C ]. (b) D = A + T [ pB + (1 - p) C ] = 60 + 50 [ 0.5 (1) + (1 - 0.5) (-1) ] = 60. 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 the practical particle size limit for pneumatic conveying?

0 Answers

What is the definition of 'good' cooling tower water?

0 Answers

what is the difference between material balance and mass balance

4 Answers

Is four stage graphite steam jet ejector is possible. Any body can provide its design

0 Answers Atul,

Question 54 - There are 2 alternatives of investment. Choice 1 : A trader offers you an investment opportunity where your investment of A$15000 presently will be A$18000 after 4 years. Choice 2 : A bank offers you 5 % annual return for your initial investment of A$15000. Question a : What is the equivalent bank payment after 4 years? Question b : By using the concept of equivalence in engineering economy, which is the better choice, betwen 1 and 2, that will be more profitable after 4 years?

1 Answers

What is the method of determining maximum differential pressure during hydro testing of shell and tube heat exchangers?

0 Answers

What is the chemical name of Silica gel?

2 Answers

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

0 Answers

what is difference between open loop system & close loop system by overview.

1 Answers TCL,

what is meaning of pid how it is useing controlers

4 Answers

How can I treat a waste stream containing both hexavalent chromium and arsenic?

0 Answers

i need some of the previous year question paper for ongc technical test and if possible let me know about the books to read for test

2 Answers Brac Bank, ONGC,

For more Chemical Engineering Interview Questions Click Here