6 ci sual

Question 1

Sue Pansky should not try to participate in the right to start because of her risk-taking and
conservative nature, an entrepreneur can never avoid risk, instead an entrepreneur can take a risk
to start over with a broader vision. There are also four alternatives, the first alternative is to do
nothing, invest in preferred stock, invest in corporate bonds, and invest in common stock. There
are four alternatives within a 5 year period for a $ 30,000 investment.

Alternative Profit (13% return) Guaranteed Return

Alt. 1 − Corporate $25,273.05 (Profit $20,000 (Profit
Bonds (13%) Favorable Market) Favorable Market)
Alt. 2 – Preferred + $90,000 (400%) −$15,000 (−50%)
Stock
Alt. 3 – Common + $210,000 (800%) −$30,000 (−100%)
Stock
Alt. 4 – Not Investing + $7,385.46 +$7385.46
(4,5% inf.) Based on these
cases and figures,
Sue Pansky was analyzed to be risk-averse and very conservative by nature. Therefore, it is
recommended to adopt a marginal decision-making approach. He should not invest in the Law of
Beginning. I recommend Sue Pansky to invest in corporate bonds as her $ 30,000 investment is
protected up to $ 20,000. generates a fixed income of 13 percent per year.

Question 2

Ray Kang must be proactive in starting a baby food business as he has good business experience
and understands trade and business tactics. Because he works in a business environment, he can
handle adverse or unexpected work situations and has experience working with business and
suppliers. Moreover, he is optimistic as he believes the business success will be 11% and this
forecast can be based on previous market research or personal information. As a commodity
broker, Ray understands financial financing systems better and their startup capabilities.

Question 3

On my advice, Lila Battle should not try to invest in the Law of Beginning because of its
conservative nature and risk aversion. The Right Start business requires a clear vision and
perspective for solutions and a higher risk-taking ability. This is because the initial investment in
a business requires an effective and innovative fundraising method that can minimize the risk of
business bankruptcy, and these fundraising methods can be risky and uncertain due to their
innovations. On the other hand, Lila has a positive outlook, as she believes Julia has a good
chance of success, which is a good feature of an entrepreneur - having positive expectations
about the volume of the business, but these expectations and attitudes must be based on reality
and facts.
Question 4

The beliefs that George Yates developed are very optimistic and factual, as Julia's job has an
equal chance of success and an equal chance of failure at her job. This is because Julia's business
is based on corporate bonds where she predicts expected returns based on market analysis and
personal estimates, and her business has a certain degree of uncertainty.

Questoin 5

Peter Metarco's optimism about the baby food market is clear and factual. This is because
parents are always willing to use and use foods with a minimal amount of unhealthy ingredients
or side effects for their children to grow stronger and healthier. Baby health has always been a
major concern for all parents, so there is a good range of baby food on the food market that
requires a minimum or negligible amount of preservative and harmful ingredients in baby food.

Question 6

Yes, Julia Day can remove preferred shares. This is because risk-takers can invest in common
stocks and risk averse can invest in corporate bonds. As we saw in the answers above, five
potential investors decided to invest in either corporate bonds or common stock. Thus, the
exclusion of preferred shares would not conflict with the choice of any investor.

3 cu sual

Two balls are drawn at random in succession without replacement from an urn
containing 4 red balls and 6 black balls. Find the probabilities of all the
possible outcomes (Discrete Random Variable) (5 point)

Let X donate the number of red balls in the outcome

Possible outcomes
RR RB BR BB
X 2 1 1 0
Here:

x1=2

x2=1

x3=1

x4=0

Now the probabilty of getting 2 red balls when we draw out the balls one at time is :
Probability of the first ball being red =4/10

Probability of the second ball being red =3/9 (because there are 3 red balls left in the urn , out of
a total of 9 balls left)

4
∗3
P(x1)= 10 = 2
9 15

4 6
Likewise, for the probability of red first id followed by black is ( because there are 6 black
10 9
balls still in the urn and 9 balls all together. So:

4
∗6
P(x2)= 10 4
=
9 15

Similarly for black then red

6
∗4
P(x3)= 10 4
=
9 15

Finally, for 2 black balls

6
∗5
P(x4)= 10 1
=
9 3

As a check, if we have found all the probabilities, then they should add up to 1.

2 4 4 1
+ + + =1
15 15 15 3