Bonus | Xi Performance type probability P (X=x) Xi*P(X=x) (U-Xi)^2*P(X=x)

10 Superior 0.15 1.5 5.046

6 Good 0.25 1.5 0.81
3 Fair 0.4 1.2 0.576
0 Poor 0.2 0 3.528
Mean 4.2 9.96

VARIENCE 9.96
SD 3.1559467676119

Expected return A 9.50%

Expected return B 7.60%
SD A 12.93%
SD B 8.20%
Cov 18.6 E (Ra)
9.5

ER Pr 8.36
Correlation coefficent 17.542866843982
E (Rb) SD (Ra) SD (Rb) Correlation coefficent Wa Wb ER Pr V(R_p) SD(R_P)
7.6 12.93 8.2 17.543 0.4 0.6 8.36 59.88 7.738

180 Var(R_P)
W_A Var(R_P)
160
0.01 66.28692
140
0.02 65.37329
0.03 64.4991 120
0.04 63.66436 100
0.05 62.86906 80
0.06 62.11321
60
0.07 61.3968
40
0.08 60.71984
0.09 60.08232 20
0.1 59.48425 0
0 0.2 0.4 0.6 0.8 1
0.11 58.92562
0.12 58.40644
0.13 57.9267
0.14 57.48641
0.15 57.08556
0.16 56.72416
0.17 56.4022
0.18 56.11969
0.19 55.87662
0.2 55.673
0.21 55.50882
0.22 55.38409
0.23 55.2988
0.24 55.25295
0.25 55.24656
0.26 55.2796
0.27 55.3521
0.28 55.46403
0.29 55.61541
0.3 55.80624
0.31 56.03651
0.32 56.30623
0.33 56.61539
0.34 56.964
0.35 57.35205
0.36 57.77955
0.37 58.24649
0.38 58.75288
0.39 59.29871
0.4 59.88398
0.41 60.50871
0.42 61.17287
0.43 61.87648
0.44 62.61954
0.45 63.40204
0.46 64.22399
0.47 65.08538
0.48 65.98622
0.49 66.9265
0.5 67.90623
0.51 68.9254
0.52 69.98401
0.53 71.08207
0.54 72.21958
0.55 73.39653
0.56 74.61293
0.57 75.86877
0.58 77.16406
0.59 78.49879
0.6 79.87296
0.61 81.28659
0.62 82.73965
0.63 84.23216
0.64 85.76412
0.65 87.33552
0.66 88.94637
0.67 90.59666
0.68 92.28639
0.69 94.01557
0.7 95.7842
0.71 97.59227
0.72 99.43979
0.73 101.3267
0.74 103.2532
0.75 105.219
0.76 107.2243
0.77 109.269
0.78 111.3532
0.79 113.4769
0.8 115.6399
0.81 117.8425
0.82 120.0844
0.83 122.3658
0.84 124.6867
0.85 127.047
0.86 129.4467
0.87 131.8859
0.88 134.3646
0.89 136.8826
0.9 139.4402
0.91 142.0371
0.92 144.6736
0.93 147.3494
0.94 150.0647
0.95 152.8195
0.96 155.6137
0.97 158.4473
0.98 161.3204
0.99 164.2329
1 167.1849
 Cov( R_A, R_B)
18.6

R_P)

0.6 0.8 1 1.2

Bonus | Xi Performance type probability P (X=x) Xi*P(X=x) (U-Xi)^2*P(X=x)
10 Superior 0.15 1.5 5.046

6 Good 0.25 1.5 0.81

3 Fair 0.4 1.2 0.576
0 Poor 0.2 0 3.528
Mean 4.2
VARIENCE 9.96
SD 3.15594676761

Portfolio return

E (Ra) E (Rb) SD (Ra) SD (Rb) Correlation coefficent

9.5 7.6 12.93 8.2 0.175428668439817

Binom distribution
Total no of trial Prob of success
No. of success
0 1
1 Err:502 NO OF TRIAL 10
2 Err:502 PROB OF SUCCESS 0.05
3 Err:502 MEAN 0.5
VARIENCE 0.475

UNIFORM DISTRUBUTION
HIGHEST VALUE
LEAST VALUE
MEAN 0
VARIENCE 0

PROBABILTY OF A SET DATA IS ACCORDING TO THE PROPORTION/PERCENTAGE OF THE SAMPLE

NORMAL DISTRIBUTION
X
MEAN 6
SD
VARIENCE 0
Z #DIV/0!

PROBABILITY Err:502
P(X<20) Err:502

IF PROBABILTIY IS GIVEN AND YOU NEED TO FIND VALUE

PROBABILITY 0.9
VALUE Err:502
 Expected return A

Expected return B
SD A
SD B
Cov

Wa Wb ER Pr
0.4 0.6 8.36
IN STANDARD NORMAL DISTRIBUTION
MEAN 0
SD 1

IF Z IS GIVEN AND YOU NEED PROBABILITY

Z
P(X=0) 0.398942
P(X<0) 0.5

IF PROB IS GIVEN AND YOU WANT Z VALUE

PROB
Z #VALUE!
 9.50%

7.60% Random variable

12.93%
8.20%
18.6

Expected return A 9.5

Expected return B 7.6
SD A 12.93
V(R_p) SD(R_P) Cov( R_A, R_B) SD B 8.2
59.883984 7.738474 18.6 Cov 18.6

POSSION DISTRIBUTION

MEAN 2 CHANGE MEAN ACCORDING TO THE PROPORTION

X PROB
0 0.135335
1 0.270671
2 0.270671 0.406006
3 0.180447
4 0.090224
5 0.036089

VARIENCE 2
SD 1.414214
X P(X=x)
0 0.00338 0.003375
1 0.05938 0.057375
2 0.32513 0.325125
3 0.61413 0.614125

Probabilty mass function

P(X<=1) 0.06075
P(X>=2) 0.93925
P(X=5) 0.100819
P(X<=2) 0.42319
P(X>=3) 0.57681

15-18
MEAN 3

P(X=5) 0.100819
P(X<=2) 0.42319
P(X>=3) 0.57681
X

Mean 12
SD 3.2 Z

P(X>20) 0.0062096653 P(Z>2.5)

P(X<=20) 0.9937903347
P(Z<=2.5)

Prob 0.9
X 16.10096501 always work with lower end probability for eg :- in this we

PROB 0.975 0.5125

Z 1.959964 0.031338

P(X<30000) 0.975
P((X-U)/6-(30000-U)/6) 0.975
P(Z<= 10000/6) 0.975

SALES ORDERED Q REVENUE COST PROFIT

10000 15000 265000 240000 25000
20000 15000 360000 240000 120000
30000 15000 360000 240000 120000

10000 24000 310000 384000 -74000

20000 24000 500000 384000 116000
30000 24000 576000 384000 192000
 2.5 This means that order quantity 20 is 2.5 times standard deviation above mena

0.0062096653

0.9937903347

obability for eg :- in this we will take probability at 0.9

prob 0.9
Z 1.281552
X 16.10097

X 15000 18000
PROB OF DEMAND <15000 0.163541 0.347528
PROB OF DEMAND >15000 0.836459 0.652472

ORDER QTY 22675.49

SALE 10000 20000 30000
REVENUE 303377.5 493377.5 720000
COST 362807.9 362807.9 362807.9
PROFIT -59430.41 130569.6 357192.1
on above mena

x`
 weight ER SD VARIENCE WEIGHT^2 COVARIENCE PORTFOLIO VARIENCE
40000 0.4 0.095 12.93 167.1849 0.16 18.6 59.88398
60000 0.6 0.076 8.2 67.24 0.36

ERP 0.0836

0 3.9063E-11
1 5.9375E-09
2 3.9484E-07 0.000372 0.9996282
3 1.5004E-05
4 0.0003563 0.000372 NORMAL DIST
5 0.0057882 A 2500
6 0.0514564 B 5000
7 0.2793349 MEAN 3750
8 0.6634204 VARIENCE 520833.3
SD 721.6878

SELL 24 SURPLUS P 5
COST 16
ORDER 15000 18000 24000 28000
PROB 0.8364525 0.652468232 0.216524 0.058444

0.7
22675.56198
O VARIENCE

MEAN 12
SD 3.2
Z 2.5
P(X>20) 0.00621
PX<15) 0.825749

PROB 0.9
X 16.10097

PROB 0.975
Z 1.959964
SD 5102.135
MEAN 20000
0.56

0.6561
0.3439