Order the answer to: Carla is a statistician with…
|Question||Carla is a statistician with a bank. She has collected debt-to-equity mix data on mature (M) and young (Y) companies. The debt percentages vary from 20% to 80% in her sample. Carla has defined D M as a variable for the mature companies from 0 to 1, with DM = 0 interpreted as the low of 20% debt and DM = 1.0 as the high of 80% debt. The variable for young debt percentages DY is similarly defined. The probability distributions used to describe DM and DY are? f(DM) = 3(1 – DM)2 0 ? DM ? 1 f(DY) = 2DY 0 ? DY ? 1 (a) Use different values of the debt percentage between 20% and 80% to calculate values for the probability distributions and then plot them. (b) What can you comment about the probability that a mature company or a young company will have a low debt percentage? A high debt percentage?|
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