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Monte Carlo Simulations and Real Options Isabelle is a corporate auditor who has just landed three new clients. Her charge-out rate is $370 per hour.
Monte Carlo Simulations and Real Options
Isabelle is a corporate auditor who has just landed three new clients. Her charge-out rate is $370 per hour. Her experience with similar sized companies indicates that the time taken to audit one company is described by a negative exponential probability distribution with a mean of 15 hours. She wants to perform a Monte Carlo Simulation of the amount of money that she will be paid in total for auditing these three companies. The standard uniform random numbers provided by the random number generator for the first realisation are 0.718,0.137 and 0.73. What will be the total amount of money that she will be paid in the first realisation? Answer to the nearest dollar. Isabelle is a corporate auditor who has just landed three new clients. Her charge-out rate is $370 per hour. Her experience with similar sized companies indicates that the time taken to audit one company is described by a negative exponential probability distribution with a mean of 15 hours. She wants to perform a Monte Carlo Simulation of the amount of money that she will be paid in total for auditing these three companies. The standard uniform random numbers provided by the random number generator for the first realisation are 0.718,0.137 and 0.73. What will be the total amount of money that she will be paid in the first realisation? Answer to the nearest dollarStep by Step Solution
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