ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.3 : (a) In the M / M / 1 queue that happens with randomness, let State 0 = the queue and server are empty, State 1 = the server is in use and the queue is empty, State 2 = the server is in use and 1 is in the queue, State 3 = the server is in use and 2 in the queue. Let P (0) = probability of State 0, P (1) = probability of State 1, P (2) = probability of State 2, P (3) = probability of State 3 and so on. If c = constant, P (1) = c P (0), P (2) = c [ c P (0) ], P (3) = c { c [ c P (0) ] }, write an equation that involves P (N), P (N + 1) and c. (b) Let L = market price of risk, r = riskless rate, m = expected return, s = volatility. Given that L = (m - r) / s related to oil prices, expected return = 12 %, s = 20 %, riskless rate = 8 %, calculate the market price of risk.



ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.3 : (a) In the M / M / 1 queue that happens with r..

Answer / kangchuentat

ACCOUNTING AND FINANCIAL ENGINEERING - ANSWER 34.3 : (a) P (1) = c P (0), P (2) = c [ c P (0) ] = c P (1), P (3) = c { c [ c P (0) ] } = c P (2). Then P (N + 1) = c P (N). (b) Let m = 12 %, r = 8 %, s = 20 %, then L = (m - r) / s = (12 - 8) / 20 = 4 / 20 = 1 / 5. The answer is given by Kang Chuen Tat; PO Box 6263, Dandenong, Victoria VIC 3175, Australia; SMS +61405421706; chuentat@hotmail.com; http://kangchuentat.wordpress.com.

Is This Answer Correct ?    0 Yes 0 No

Post New Answer

More Chemical Engineering Interview Questions

Explain the process of including heat exchangers in ammonia refrigeration system?

0 Answers  


ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.30 : A biochemical engineering sales contract adopts Cost Recovery Method in its company accounting. Gross profit is realised only when cash collections exceed the total cost of goods sold. Let Y = Original Cost Recovered, Z = Gross Profit Realised. Its property was sold at A = $500k with cost of B = $300k. Its engineering accountant receives cash of C = $240k in first year, D = $180k in second year and E in third year. (a) Find the values of Y and Z in : (i) first year; (ii) second year; (iii) third year. (b) What is the exact value of E if all cash has been fully received from sales?

1 Answers  


why Torispherical heads are used in pressure vessels?

1 Answers   India Cements,


why GOD ALMIGHTY has made every living thing by water?

5 Answers  


Explain what are the affinity laws associated with dynamics pumps?

0 Answers  






What is the purpose of capacitor? What does capacitor load means? How does it connect?

0 Answers  


For what ration of Lengh/Dia. of tank (Jacketed tank), maximum heat transfer area is available?

0 Answers  


1.How a chlorine leak is detected? 2.What would happen if excess chlorine is added to water in cooling tower?

3 Answers  


A distillation column separates 10000 kg / hr of a mixture containing equal mass of benzene and toluene. The product D recovered from the condenser at the top of the column contains 95 % benzene, and the bottom W from the column contains 96 % toluene. The vapor V entering the condenser from the top of the column is 8000 kg / hr. A portion of the product from the condenser is returned to the column as reflux R, and the rest is withdrawn as the final product D. Assume that V, R, and D are identical in composition since V is condensed completely. Find the ratio of the amount refluxed R to the product withdrawn D. Hint : Solve the simultaneous equations as follow in order to find the answer (R / D) : 10000 = D + W; 10000 (0.5) = D (0.95) + W (0.04); 8000 = R + D.

2 Answers  


What is mean by pump head 5 meter?

6 Answers  


Hi, Please give me chemical engineering paper for IOCL exam for entire written exam, GD and personel interview model questions to my email id. (chemistnathan@rediffmail.com) Rgds, Ragu

0 Answers   HAL, IOCL,


can i drink deminaralised?

1 Answers   Dalkia,


Categories
  • Civil Engineering Interview Questions Civil Engineering (5085)
  • Mechanical Engineering Interview Questions Mechanical Engineering (4451)
  • Electrical Engineering Interview Questions Electrical Engineering (16632)
  • Electronics Communications Interview Questions Electronics Communications (3918)
  • Chemical Engineering Interview Questions Chemical Engineering (1095)
  • Aeronautical Engineering Interview Questions Aeronautical Engineering (239)
  • Bio Engineering Interview Questions Bio Engineering (96)
  • Metallurgy Interview Questions Metallurgy (361)
  • Industrial Engineering Interview Questions Industrial Engineering (259)
  • Instrumentation Interview Questions Instrumentation (3014)
  • Automobile Engineering Interview Questions Automobile Engineering (332)
  • Mechatronics Engineering Interview Questions Mechatronics Engineering (97)
  • Marine Engineering Interview Questions Marine Engineering (124)
  • Power Plant Engineering Interview Questions Power Plant Engineering (172)
  • Textile Engineering Interview Questions Textile Engineering (575)
  • Production Engineering Interview Questions Production Engineering (25)
  • Satellite Systems Engineering Interview Questions Satellite Systems Engineering (106)
  • Engineering AllOther Interview Questions Engineering AllOther (1379)