Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Statistics and Probability Expert

Question: Pierre operates a currency exchange office at Orly Airport in Paris. His office is open at night when the airport bank is closed, and he makes most of his business on returning U.S. tourists who need to change their remaining euros back to U.S. dollars. From experience, Pierre knows that the demand for dollars on any given night during high season is approximately normally distributed with mean $25,000 and standard deviation $5,000. If Pierre carries too much cash in dollars overnight, he pays a penalty: interest on the cash. On the other hand, if he runs short of cash during the night, he needs to send a person downtown to an all-night financial agency to get the required cash. This, too, is costly to him. Therefore, Pierre would like to carry overnight an amount of money such that the demand on 85% of the nights will not exceed this amount. Can you help Pierre find the required amount of dollars to carry?

Statistics and Probability, Statistics

  • Category:- Statistics and Probability
  • Reference No.:- M92501282
  • Price:- $15

Priced at Now at $15, Verified Solution

Have any Question?


Related Questions in Statistics and Probability

In a sample of 20 cups of coffee at the local coffee shop

In a sample of 20 cups of coffee at the local coffee shop, the average temperature was 162.5 degrees with a standard deviation of 14.1 degrees. What would be the 95% confidence interval for the temperature of your cup of ...

Please explain which formula i should use to complete the

Please explain which formula I should use to complete the following probability question: The probability that a family will buy a vacation home in Miami, malibu, or newport is 0.25, 0.10 and 0.35. What is the probabilit ...

The number of cell phones per 100 residents in countries in

The number of cell phones per 100 residents in countries in Europe is given in table 9.3.9 for the year 2010. The number of cell phones per 100 residents in countries of the Americas is given in table 9.3.10 also for the ...

What level of measurement is required for qualitative

What level of measurement is required for qualitative variables? What level of measurement is required for quantitative variables? Can both types be used to describe both samples and populations? Why or why not?

Two pediatricians want to investigate a new laboratory test

Two pediatricians want to investigate a new laboratory test that identifies streptococcal infection. Dr. Kidd uses the standard culture test, which has a sensitivity of 90% and specificity of 96%. Dr. Childs uses the new ...

Bella is 23 years old and wants to invest money for her

Bella is 23 years old and wants to invest money for her retirement. She wants to have $2,000,000 saved up when she retires at age 65. a) If she can earn 10% per year in an equity mutual fund, calculate the amount of mone ...

A puck company wants to sponsor the players with the 20

A puck company wants to sponsor the players with the 20% quickest goals in hockey games. The times of first goals are normally distributed with a mean of 8.54 minutes and a standard deviation of 4.91 minutes. How fast wo ...

A hotel claims thatnbsp95 of its customers are very

A hotel claims that 95?% of its customers are very satisfied with its service. Complete parts a through d below based on a random sample of seven customers. What is the probability that more than six customers are very?  ...

Provide an example of population parameter sample and

Provide an example of population, parameter, sample, and census in a business research project. Why is it important to define the population clearly and precisely in a business research project?

Te number of accidents in a day in town a is given by x

The number of accidents in a day in town A is given by X , and the number of accidents in a day in town B is given by  Y . The joint probability function for  X   and  Y Y is  f ( x , y )=964 x ! y !   for  x =0,1,2,3 an ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As