Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If you need anymore information, please specify in the comments. Data First Yearly Salaryi (S) Minimum 41,000 Baseline 55,902 Maximum 70,000 First month's rent ($)

image text in transcribed

image text in transcribedimage text in transcribed

If you need anymore information, please specify in the comments.

Data First Yearly Salaryi (S) Minimum 41,000 Baseline 55,902 Maximum 70,000 First month's rent ($) Minimum 1,400 Baseline 2,894 Maximum 4,990 For this question, run 10 (ten) trials of a Monte Carlo simulation of the present value of living and working in Nanaimo, using min/baseline/maximum information from Project 1. If you are doing this by hand, instead of with Excel, you may run 5 (five) trials, instead. The TAs will be making sure your curve looks like it should, and is properly labeled. You are also asked to post your 'headers' and first five trials (there's a sample answer in what follows). This present value is represented by the following equation: Sx (P/A,gsau2.45%,40) x (P/A,2.45%,2) - RX (P/A great.MARRmonthly 480) X (P/F,MARRmonthly,35) . S = initial yearly salary R = first month's rent gsal = (1+10%)12/14 - 1 = 8.51% (approx.) MARR monthly = (1+2.45%)1/12 - 1 grent = (1 + 14%)1/12 - 1 . . . i. (2 marks) For each of your variables, choose either a triangle, uniform or normal distribution, and briefly explain why you chose it. If you find the triangle distribution confusing, it's fine to restrict yourself to choosing between a normal or uniform distribution. Please include steps, data, calculation and reason. Variable Distribution Reason S R Any distribution choice is fine, as long as the reason is logical. Triangle: values near. baseline most likely, but distribution is lopsided. Normal: Values near baseline are more likely, distribution is symmetric and baseline is near the middle of the [MIN.MAX] range. Uniform: Any number between MIN and MAX equally likely. ii. (4 marks) Also, provide the median, mean, minimum, maximum and 80% confidence interval (or 60% confidence interval if doing this by hand). Please include steps, data, calculation and reason. PV Vancouver Salary (10 trials, or 5 trials if by hand) MEAN MEDIAN MIN MAX 80% CONF (60% if by hand) iii. (4 marks) Create a Cost Acceptability Curve for your data. Please include steps, data, calculation and reason. Data First Yearly Salaryi (S) Minimum 41,000 Baseline 55,902 Maximum 70,000 First month's rent ($) Minimum 1,400 Baseline 2,894 Maximum 4,990 For this question, run 10 (ten) trials of a Monte Carlo simulation of the present value of living and working in Nanaimo, using min/baseline/maximum information from Project 1. If you are doing this by hand, instead of with Excel, you may run 5 (five) trials, instead. The TAs will be making sure your curve looks like it should, and is properly labeled. You are also asked to post your 'headers' and first five trials (there's a sample answer in what follows). This present value is represented by the following equation: Sx (P/A,gsau2.45%,40) x (P/A,2.45%,2) - RX (P/A great.MARRmonthly 480) X (P/F,MARRmonthly,35) . S = initial yearly salary R = first month's rent gsal = (1+10%)12/14 - 1 = 8.51% (approx.) MARR monthly = (1+2.45%)1/12 - 1 grent = (1 + 14%)1/12 - 1 . . . i. (2 marks) For each of your variables, choose either a triangle, uniform or normal distribution, and briefly explain why you chose it. If you find the triangle distribution confusing, it's fine to restrict yourself to choosing between a normal or uniform distribution. Please include steps, data, calculation and reason. Variable Distribution Reason S R Any distribution choice is fine, as long as the reason is logical. Triangle: values near. baseline most likely, but distribution is lopsided. Normal: Values near baseline are more likely, distribution is symmetric and baseline is near the middle of the [MIN.MAX] range. Uniform: Any number between MIN and MAX equally likely. ii. (4 marks) Also, provide the median, mean, minimum, maximum and 80% confidence interval (or 60% confidence interval if doing this by hand). Please include steps, data, calculation and reason. PV Vancouver Salary (10 trials, or 5 trials if by hand) MEAN MEDIAN MIN MAX 80% CONF (60% if by hand) iii. (4 marks) Create a Cost Acceptability Curve for your data. Please include steps, data, calculation and reason

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finanacial Investment Implemetation

Authors: Bill P. Hall

1st Edition

979-8359264228

More Books

Students also viewed these Finance questions

Question

List and describe a landlords duties to a tenant.

Answered: 1 week ago