Calculator – help for the Miller Orr Model (example 3)

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    joannemcdonnell
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    Does anyone know how you get the 3rd square of a number on a calculator???:) Refer to example 3 of the Miller Orr Model in the lecture video.

    Thanks


    Avatar of John Moffat
    John Moffat
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    Do you have a scientific calculator?
    You need one for this and most will have a special button – like a square root symbol, but with a 3 on it.


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    joannemcdonnell
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    Yes I have a scientific calculator but it does not have a square root symbol with a 3 on it??


    Avatar of John Moffat
    John Moffat
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    In that case, does it have a square root symbol with an x on it?


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    bridmw
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    Or a key with a X to the power of y on it? It actually written x^y in the calculator included with MS windows. If this is the case you enter the number hit the x^y key then enter -3 and hit =


    Avatar of admin
    admin
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    well,
    you need scientific calculator, full stop.
    you can’t take PC or mobile phone into exam hall,


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    bridmw
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    I’m not suggesting they use a PC just explaining a very common way roots above the squared roots are computed on a scientific calculator. Neither the HP, Casio or TI scientific calculators have a key as you describe in all of these you must use the” to the power off key” and then a negative 3 to get a cubed root.

    I’m assuming that since they’re posting on here they are most likely on a MS Windows PC and would therefore be able to check this out immediately using the inbuilt calculator – so they would know what to look for on an actual scientific calculator.


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    mrjonbain
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    Perhaps you could instead try using the X^Y key and put in 0.3333333333… This should give the equivalent answer to finding the cube root.


    Avatar of yousouf
    yousouf
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    @ joannemcdonnell what you can do is put it on the calculator like this:

    (3/4 x transaction cost x variance of cash flows)^(1/3)
    …and then the figure you get, you multiply it by 3

    for instance in example 3:
    (3/4 x 5 x 2000² ÷ 0.00014)^(1/3) = 4750
    …then you take 4750 and multiply it by 3, you will obtain 14250

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