HOMEWORK HELP Thread

[Malaka]

Originally Posted by bantx

p = probability of audit = .09

n = probability of no audit = .91

(p + n)^6 Isn't this just one?

6Combination5(pn^5) How did you get this? Where did the combo come from?

6 * .09 * .91^5 = .336977 <--answer


Subtract 1 from P and that will always be your N

memorize your formula's malaka statistics is easy, if you know your formula's it's just plug and calculate.

Thanks Bantx! I bolded some questions I had above.

The two rules I have been taught for probability right now are

Gen. Addition Rule: P(A) + P(B) - P(A AND B)

Multiplication Rule: P(A and B)= P(A)P(B)

With those two formulas I have no idea how to get the function you showed me :/

And Bosanac, is there any inflation involved? Or maybe I am thinking too much about economics, but you should probably just deflate the 10,000 using "today's" dollars. If not inflation then the interest is most likely compounded daily/monthly/weekly.

EDIT: Bantx I am given the formulas on the test lol.

[bantx]

then it should be easy! Combination is in your calculator if you have a ti-30x it should be right next to your 2nd button over to the right one and under. You will see xCx it's just a quicker way to do the problem your professors is probably making you learn the hard way but this does all the work for you and makes it a lot easier. I didn't have to learn the hard way luckily so I can't explain how to set it up. I could but I'd prob get you more confused than you are.

[Malaka]

Originally Posted by bantx

then it should be easy! Combination is in your calculator if you have a ti-30x it should be right next to your 2nd button over to the right one and under. You will see xCx it's just a quicker way to do the problem your professors is probably making you learn the hard way but this does all the work for you and makes it a lot easier. I didn't have to learn the hard way luckily so I can't explain how to set it up. I could but I'd prob get you more confused than you are.

I understand the combination and I know how to get it on my calculator but how did the exponent go from 6 to 5?

[bantx]

since you're only looking for exactly 1 you subtract 1 from 6 that's where you get the 5. Say if you're looking for exactly 2 it will look like this

6 * .09 * .91^4

You always subtract the exact number from the total amount of N

I feel like it's harder for me to explain it on here lol, but hopefully you get it.

[Bosanac01]

No one want's to take a stab at my finance problem?

[Malaka]

Originally Posted by bantx

since you're only looking for exactly 1 you subtract 1 from 6 that's where you get the 5. Say if you're looking for exactly 2 it will look like this

6 * .09 * .91^4

You always subtract the exact number from the total amount of N

I feel like it's harder for me to explain it on here lol, but hopefully you get it.

Thanks dude! I'll look for some practice problems to nail the concept.

[wogitalia]

Originally Posted by Bosanac01

I have a finance problem that I'm probably over thinking.

Q: An investment will pay you $3,000 today, $8,000 in one year and $10,000 in two years. If the appropriate interest rate is 6%, what is this investment worth today?

Your problem is an NPV calculation by the looks of it.

Basically you have to discount the future money to the their present value. To discount you use the rate of return as the discount rate (Interest rate in this scenario) and then use the below formula.

I'm pretty rusty on NPV but I'd think it is this...

NPV = 3,000+8,000/(1+.06)^1+10,000/(1+.06)^2
= 3,000 + 7,547.17 + 8,899.96
= 19,447.13

Someone else can confirm it though.

Depending on the level of the course I'd check whether you are required to calculate the tax implications as well, but given that is a particularly basic looking question I'd assume not and normally on NPV calculations it's the tax shield impact of deductions that are factored in rather than tax payable.

[Bosanac01]

Originally Posted by wogitalia

Your problem is an NPV calculation by the looks of it.

Basically you have to discount the future money to the their present value. To discount you use the rate of return as the discount rate (Interest rate in this scenario) and then use the below formula.

I'm pretty rusty on NPV but I'd think it is this...

NPV = 3,000+8,000/(1+.06)^1+10,000/(1+.06)^2
= 3,000 + 7,547.17 + 8,899.96
= 19,447.13

Someone else can confirm it though.

Depending on the level of the course I'd check whether you are required to calculate the tax implications as well, but given that is a particularly basic looking question I'd assume not and normally on NPV calculations it's the tax shield impact of deductions that are factored in rather than tax payable.

I got the answer couple of hours ago and you're exactly right. I was pretty much over thinking it.

[wogitalia]

Originally Posted by Bosanac01

I got the answer couple of hours ago and you're exactly right. I was pretty much over thinking it.

Good to hear :)

[Bosanac01]

Originally Posted by wogitalia

Good to hear :)

Thank you for attempting it. I may need some assistance with this later in the semester, I hope I can bother you a little bit if I'm stuck on something again. Always appreciated.

[wogitalia]

Originally Posted by Bosanac01

Thank you for attempting it. I may need some assistance with this later in the semester, I hope I can bother you a little bit if I'm stuck on something again. Always appreciated.

You can try... my finance is pretty rusty but probably good for me to stay on top of it a bit :)

From the above question I'm guessing it's an introduction to finance type unit and if it's anything like the one I did, if you can get your head around NPV and discounted cash flows it will be smooth sailing, there are only so many ways they can change it.

[Rob S]

Just buy a financial calculator, Bos.

[Bosanac01]

Originally Posted by Rob S

Just buy a financial calculator, Bos.

I already did dammit, the **** is confusing. Im slowly learning how to use it.

[Bosanac01]

Originally Posted by wogitalia

You can try... my finance is pretty rusty but probably good for me to stay on top of it a bit :)

From the above question I'm guessing it's an introduction to finance type unit and if it's anything like the one I did, if you can get your head around NPV and discounted cash flows it will be smooth sailing, there are only so many ways they can change it.

Yea I don't think it's hard at all. I had a little trouble with accounting, but finance is straight forward as of right now.

[zachsaints52]

Any taking GIS before? Not that its overly difficult, but when the do a version upgrade theres a major difference in the software.

[wogitalia]

Originally Posted by Bosanac01

Yea I don't think it's hard at all. I had a little trouble with accounting, but finance is straight forward as of right now.

Haha I found finance, especially the harder units, to be far more difficult but accounting is one of those things you either get or you don't from my experience. The thing I liked about accounting is you knew at the end whether you were right or wrong (or damn close anyway) where as in finance you could go down the completely wrong path and not know until you got your marks back :)

[Rob S]

Finance at the high levels is definitely way more difficult than any accounting. It's not even close.

[wogitalia]

Originally Posted by Rob S

Finance at the high levels is definitely way more difficult than any accounting. It's not even close.

Wont get any argument from me on that front! I found even the intermediate finance units to be considerably harder than any accounting I've done.

[Malaka]

EDIT: Nvm, I figured out my mistake.

[zachsaints52]

Our college finally got the updated versions of GIS. Anyone else learned on ArcGis?