1) Utilize the information given below to answer the problems:
Jerry the salesman knows from experience he has a 20% chance of making a sale when calling on the customer. One morning he prepares to make 10 calls.
On this morning, how many sales does he expect to make?
What is Jerry's chance of making exactly 3 sales? What is Jerry's probability of making 4 or more sales? What is the probability Jerry will make at least 1 sale on this morning?
The investment which you are considering prises to pay= $2000 semi-annually for next 2 years beginning 6 months from now. You have found out that suitable opportunity cost rate is= 8% compounded quarterly. Determine present value of this investment?