Hi John
Before I watched your lecture on this I had a wild stab at it and I got the correct answer although my method was not the same as yours. Mine was a lot quicker though I am concerned that my method is wrong and its just coincidence I got the right answer and I would run into trouble for a more complicated question
Here it is!
(a) (i)
Opening balance (500)
+8000x0.1=800
+4000x0.6=2400
+(2000)x0.3=(600)
=closing balance at end of period 1 $2100
(ii)
Opening balance 2100
+7000x0.3=2100
+3000x0.5=1500
+(9000)x0.2=(1800)
=closing balance at end of period 2 $3900!!
What do you think?
Cheers
Hugh
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Zse Co June 2010 expected values q
10y ago#1It isn't a coincidence :-)
Your way of doing it is fine!
Ah great :)
As it happens if I wanted to answer parts (iii) and (iv) I would need your table ;)
10y ago#4That is true :-)
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