Answered: aultable 1-year loans with a principal…

aultable 1-year loans with a principal of $1 million each. The probability of default on each loan is 2.5%. Assume that if one loan defaults, t

Operations Research : Applications and Algorithms

4th Edition

ISBN:9780534380588

Author:Wayne L. Winston

Publisher:Wayne L. Winston

Chapter17: Markov Chains

Section17.3: N-step Transition Probabilities

Problem 1P

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Solve in R programming language: Suppose that the number of years that a used car will run before a major breakdown is exponentially distributed with an average of 0.25 major breakdowns per year. (a) If you buy a used car today, what is the probability that it will not have experienced a major breakdown after 4 years. (b) How long must a used car run before a major breakdown if it is in the top 25% of used cars with respect to breakdown time.
If the company invests 100,000 USD or less, their profit will be based on 75,000 USD as first 25,000 USD goes to set up the business in the first place. For the first 100,000 USD, the profit margin is low: 4.5%. Therefore, for every 100 dollar they spend, they get a profit of 4.5 dollar. For an investment greater than 100,000 USD, for the first 100,000 USD (actually on 75,000 USD as 25,000 is the setup cost), the profit margin is 4.5% whereas for the rest, it goes up to 8%. For example, if they invest 250,000 USD, they will get an 8% profit for the 150,000 USD. In addition, from the rest 100,000 USD, 25,000 is the setup cost and there will be a 4.5% profit on the rest 75,000. The investment will always be greater or equal to 25,000 and multiple of 100. Complete the RECURSIVE methods below that take an array of integers (investments) and an iterator (always sets to ZERO(‘0’) when the method is initially called) and prints the profit for the corresponding investment. You must…
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Suppose, you are working in a company ‘X’ where your job is to calculate the profit based on their investment. If the company invests 100,000 USD or less, their profit will be based on 75,000 USD as first 25,000 USD goes to set up the business in the first place. For the first 100,000 USD, the profit margin is low: 4.5%. Therefore, for every 100 dollar they spend, they get a profit of 4.5 dollar. For an investment greater than 100,000 USD, for the first 100,000 USD (actually on 75,000 USD as 25,000 is the setup cost), the profit margin is 4.5% where for the rest, it goes up to 8%. For example, if they invest 250,000 USD, they will get an 8% profit for the 150,000 USD. In addition, from the rest 100,000 USD, 25,000 is the setup cost and there will be a 4.5% profit on the rest 75,000. Investment will always be greater or equal to 25,000 and multiple of 100. Complete the RECURSIVE methods below that take an array of integers (investments) and an iterator (always sets to…