Approximate the following binomial probabilities by the use of normal approximation. 80% of customers of a bank keep a minimum balance of $500 in their checking accounts. What is the probability that in a random sample of 100 customers a. exactly 80 keep the minimum balance of $500? b. 75 or more keep the minimum balance of $500?

Answers

Answer 1

a. The probability of exactly 80 customers keeping the minimum balance of $500 can be approximated using the normal approximation to the binomial distribution.  b. The probability of 75 or more customers keeping the minimum balance of $500 can also be approximated using the normal approximation to the binomial distribution.

a. To approximate the probability of exactly 80 customers keeping the minimum balance of $500 in a random sample of 100 customers, we can use the normal approximation to the binomial distribution. The mean (μ) is equal to the product of the sample size (n) and the probability of success (p), which is 100 * 0.8 = 80. The standard deviation (σ) is the square root of n * p * (1 - p), which is sqrt(100 * 0.8 * 0.2) ≈ 4. In this case, we can use a continuity correction since we are approximating a discrete probability with a continuous distribution. Thus, we can calculate the probability using the normal distribution with a mean of 80 and a standard deviation of 4.

b. To approximate the probability of 75 or more customers keeping the minimum balance of $500, we need to calculate the cumulative probability of 75 or fewer customers not keeping the minimum balance. Using the same normal approximation, we can calculate the z-score for 75 customers and use the cumulative distribution function of the normal distribution to find the probability. The z-score is given by (75 - 80) / 4 ≈ -1.25. We can then use the normal distribution table or software to find the cumulative probability associated with the z-score of -1.25 and subtract it from 1 to obtain the probability of 75 or more customers keeping the minimum balance.

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Related Questions

how do i find a formula for "1+3+5+7+......+(2n-1)

Answers

Answer:

Step-by-step explanation:

common difference d=3-1=2

first term a=1

an=a+(n-1)d

2n-1=1+(l-1)2

2n-1=1+2l-2

2n-1=2l-1

l=n

(i used l for number of terms)

number of terms=n

[tex]S_{n}=\frac{n}{2} (first ~term+last~term)\\=\frac{n}{2} (1+2n-1)\\=n^2[/tex]

A cardboard box is shaped like a cube. The length of each face is 15 inches what is the volume of the box in cube inches

Answers

Answer:

3375 in³

Step-by-step explanation:

Volume of a cube = a³ ; where a = edge of the cube

Length of each face = edge of cube = 15 inches

Volume of cube = 15³

Volume of cube = 15 inch * 15 inch * 15 inch

Volume of cube = 3375 in³

Find the total surface area.

Answers

Answer:

42.33+49.8

Step-by-step explanation:

add sides man i think

Answer:

Step-by-step explanation:

Solve for x 345 = 5x Express the answer to the hundredths place (i.e., two digits after the decimal point).

Answers

The solution to the equation is x = 69.

To solve the equation 345 = 5x for x, we can isolate the variable by dividing both sides of the equation by 5:

345/5 = 5x/5

69 = x

Therefore, the value of x = 69.

This means that if we substitute x with 69 in the equation 5x, we will obtain the left-hand side of the equation 345. The solution is accurate to the hundredth place, as there are no decimal places involved in this particular equation. It's important to note that the solution is a whole number, and in this case, it represents the value of x that satisfies the equation.

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75/100 reduced by 10

Answers

Answer: 3/4. fraction to decimal calculator to find what's an equivalent decimal for the fractional number 3/4.

0.75 is a decimal and 75/100 or 75% is the percentage for 3/4.

Step-by-step explanation:fraction simplification calculator to find what's a reduced or simplest form for 75/100 at its lowest terms. 3/4 is a simplified fraction for 75/100

87392 rounded off to the nearest 5​

Answers

i think the answer is 87395:)

The given number 87392 is rounded off to 87390.

What is meant by "rounding off"?

Rounding off means a number is made simpler by maintaining its overall value but being closer to the next number.

The number to be rounded off is 87392.

The digit present in the once place is 2.

If the smallest place digit is greater than or equal to 5, then round up the digit.

As the digit in the smallest digit is less than 5, the digit gets rounded down.

Here, the smallest place digit is 2 which is smaller than 5.

So, the given number rounded off to 87390.

Hence, the answer is 87390.

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solve the equation by the elimination method..!!
1. 3x+ 4y= 10 & 2x- 2y = 2​

Please don't post invalid answer please..!!

Answers

The value of the x and y by the elimination method will be 2 and 1.

What exactly is a linear system?

It is an equation system in which the maximum power of the variable is always 1. A figure with only one dimension and no breadth. It is made up of infinite dots placed side by side.

Given linear equation;

3x+ 4y= 10

2x- 2y = 2​

The following operations are done;

(3x+ 4y= 10) ×2

(2x- 2y = 2)​ × 3

6x+8y=20

6x-6y=6

Subtract equation 1 from 2 to eliminate x;

6x+8y-6x+6y=20-6

14y=14

y=1

The value of x is obtained by putting the value in equation 1;

3x+4(1)=10

3x=6

x=2

Hence, the value of the x and y by the elimination method will be 2 and 1.

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On a six-day vacation, the forecast is a 60% chance of rain every day. What's the probability that it rains every day? Enter a fraction or round your answer to 4 decimal places, if necessary, Out of 419 applicants for a job, 152 have over 10 years of experience and 63 have over 10 years of experience and have a graduate degree. Step 1 of 2: What is the probability that a randomly chosen applicant has a graduate degree, given that they have over 10 years of experience?

Answers

The probability that it rains every day on a six-day vacation, given a 60% chance of rain each day, can be calculated by multiplying the individual probabilities. The probability of rain on any given day is 0.6, so the probability of rain every day is (0.6)^6 = 0.046656, rounded to 4 decimal places. Therefore, the probability of rain every day during the vacation is approximately 0.0467.

In the case of the job applicants, we are given that out of 419 applicants, 152 have over 10 years of experience and 63 have both over 10 years of experience and a graduate degree. To find the probability that a randomly chosen applicant has a graduate degree, given that they have over 10 years of experience, we need to calculate the conditional probability.

The conditional probability is determined by dividing the number of applicants with both over 10 years of experience and a graduate degree (63) by the total number of applicants with over 10 years of experience (152). Therefore, the probability is 63/152, which is approximately 0.4145, rounded to 4 decimal places. Thus, the probability that a randomly chosen applicant has a graduate degree, given that they have over 10 years of experience, is approximately 0.4145.

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Long cooks three Vietnamese dinners that weigh a total of 40 ounces. What is the average(mean) weight for each dinner?

Answers

Answer:

The average (mean) weight for each dinner is 13.33 oz.

Step-by-step explanation:

mean = sum of all data points / total number of items in the set

mean = 40 / 3

mean = 13.33 oz

For a class trip a teacher bought 25 student tickets and 5 adult tickets. A. Write an expression for the total cost of tickets purchased. ( Don't forget to identify your unknown and assign a variable) B. If student tickets cost $4 and adult tickets cost $6, how much money did the teacher spend on tickets? 1 point for expression, 1 point for correct amount spent

Answers

25T + 5A = ?
T = Student Tickets
A = Adult Tickets

$4 x 25 = $100.00
$6 x 5 = $30.00
—————————
$130.00

Step-by-step explanation:

we all know that the teacher bought 25 tickets for the children and 5 for the adult children's tickets cost 4 shillings so we'll have to take 25 times for and adult tickets cost $6 so we'll have to take 5 * 6 will get 30 and 25 * 4 will get 100 total is equals to 130 so the teachers spent $130 buying the tickets hope this helps you.

Help me please I will give points whenever u wanna

Answers

Answer:

x = 120 degrees or (c)

Step-by-step explanation:

It's 120 degrees...

...

The mean number of words per minute (WPM) typed by a speed typist is 119 with a standard deviation of 15 WPM. What is the probability that the sample mean would differ from the population mean by greater than 4.1 WPM if 33 speed typists are randomly selected? Round your answer to four decimal places.

Answers

Answer:

the probability that the sample mean would differ is 0.1164

Step-by-step explanation:

The computation of the probability is shown below

= 1 - P(Within 4.1 WPM)

= 1 - P( -4.1 ÷ 15÷ √3 <z < 4.1 ÷ 15÷ √3)

= 1 - P(-1.57 < z < 1.57)

= 1 - 0.8836

= 0.1164

Hence, the probability that the sample mean would differ is 0.1164

Therefore the same would be applied and relevant

CAN SOMEONE HELP ME FIND THE AREA OF THE LIGHT GRAY PART WITH AN EXPLANATION :)

(IF YOU WANT ME TO GO TO A LINK I'M NOT, SO YOUR ANSWER WILL BE REPORTED IF YOU DECIDE TO INCLUDE ONE)

Answers

Answer:

91 or 525

Step-by-step explanation:

Multiply the objects width (How long it is), times height. For the smaller object inside the bigger object, it is 91. For the bigger object, it is 525.

what is 3/4 divided 1/2.​

Answers

Answer:

6/4 or 1 2/4

Step-by-step explanation:

hope this helps

Answer:

1.5

Step-by-step explanation:

3/4 ÷ 1/2

= 3/4 x 2

= 6/4

= 3/2

= 1.5

You are conducting a study to see if the proportion of voters who prefer the Democratic candidate is significantly different from 55% at a level of significance of a = 0.05. According to your sample, 44 out of 73 potential voters prefer the Democratic candidate.

a. For this study, we should use ______________
b. The null and alternative hypotheses would be: ___________

Answers

a. For this study, we should use the z-test.

b. The null and alternative hypotheses would be: Null hypothesis: H0: p = 0.55

Alternative hypothesis: H1: p ≠ 0.55

Explanation:

We use the z-test when we are testing the difference between the sample mean and the population mean. Here we are testing the difference between the sample proportion (p) and the population proportion (P).

We should use the z-test for this study to check whether the proportion of voters who prefer the Democratic candidate is significantly different from 55% at a level of significance of a = 0.05. This is because we are testing the proportion of people who prefer a Democratic candidate from a population. Here, we will use the sample size, sample proportion, and level of significance to calculate the test statistic (z) value.

The null hypothesis is H0: p = 0.55, which states that there is no difference between the proportion of voters who prefer the Democratic candidate and the population proportion.

While the alternative hypothesis is H1: p ≠ 0.55, which states that there is a significant difference between the proportion of voters who prefer the Democratic candidate and the population proportion.

a. For this study, we should use the z-test.

b. The null and alternative hypotheses would be: Null hypothesis: H0: p = 0.55

Alternative hypothesis: H1: p ≠ 0.55

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Enter the correct answer in the box. Function g is the result of these transformations on the parent sine function: vertical stretch by a factor of 3 horizontal shift left units vertical shift down 4 units Substitute the values of A, C, and D to complete the equation modeling function g. g(x) = Asin(x + C) + D

Answers

Answer:

By substituting the values of A, C, and D the equation modelling the function is;

g(x) = 3·sin(x - π/2) - 4

Step-by-step explanation:

From the given information, we have;

The vertical stretch of the sine function = 3 × The parent function

∴ A = 3

Given that the horizontal shift left = π/2 units, (from an online source with similar question)

The vertical shift down = 4 units

The given function, g is g(x) = A·sin(x + C) + D

Where;

A = The amplitude = The maximum displacement from the rest or equilibrium position = 3

C = The horizontal shift = -π/2 (The negative sign is for the shifting to the left)

D = The vertical shift = -4 (The negative sign is for a shift in the downward direction)

Therefore, the equation modelling the function is;

g(x) = 3·sin(x - π/2) - 4

Answer:

g(x) = 3·sin(x + π/2) - 4

Step-by-step explanation:

shifted left, it will be positive inside the parentheses

what is the range of this data set?

Answers

Answer:

Range = 3.3

Step-by-step explanation:

Range = Max value - Min value

Max value = 100.1

Min Value = 96.8

Range = 100.1 - 96.8

Range = 3.3


HELP ME PLEASEEEEEE

Answers

It -3 correct answer

Answer:

-3

Step-by-step explanation:

The answer is -3 because it is the number on the x-axis

what is 3a + 7 -2a -4 simplified?

Answers

Answer:

3a-2a+7-4

a+3

Step-by-step explanation:

like and unlike terms arranging

and add and subtraction

A video of Mr. Satyam’s class discussing mathematical strategies won a STEM award. 8% of the videos won awards. There were 24 awards. What is the total number of videos?

Answers

Answer:

There were 300 videos.

Step-by-step explanation:

Since there are 24 videos that got awards, and that's only 8% of the total videos, you put those together. We want the number of 100% of the videos. I would solve this by setting up a ratio and solving for [tex]x[/tex]. This is would look like:

[tex]\frac{24}{8} =\frac{x}{100}[/tex]  

In order to get to 100, you must multiply 8 by 12.5. Therefore, you can multiply 24 by 12.5 to complete the ratio. That would make the ratio look like:

[tex]\frac{24}{8} =\frac{300}{100}[/tex]

Therefore there are 100% of the videos in the contest is 300.

Rx: Heparin 40 000 units in D5W 1000 mL Drug available: Heparin 10 000 units/mL 2 mL single-dose vial How much heparin solution would be injected into the D5W 1000-mL bag?
A. 1 ml
B. 2 mL
C. 4 mL
D. 8 mL
6. With reference to question 5, how many heparin vials would be pulled from inventory to prepare the heparin infusion?
A. 1
B. 2
C. 3
D. 4

Answers

To prepare the heparin infusion with a concentration of 40,000 units in 1,000 mL, 4 mL of the heparin solution should be injected into the D5W 1,000 mL bag, i.e., Option C and B are the correct answers.

Since the available heparin solution has a concentration of 10,000 units/mL and the desired concentration is 40,000 units in 1,000 mL, we need to determine the volume of the 10,000 units/mL solution to achieve this concentration.

By setting up a proportion, we can calculate the volume of the heparin solution needed:

10,000 units / 1 mL = 40,000 units / x mL

Cross-multiplying gives us:

10,000x = 40,000

Solving for x:

x = 40,000 / 10,000
x = 4 mL

Therefore, 4 mL of the heparin solution would be injected into the D5W 1,000 mL bag to prepare the heparin infusion.

For the second question, since each vial contains 2 mL and we need 4 mL, we would need to pull 2 vials from inventory to prepare the heparin infusion.

In conclusion, the answer to question 5 is A. 4 mL, and the answer to question 6 is B. 2.

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Write an equation for this word
sentence: one third of a number
equals 9.

Hurry plsss

Answers

Answer:I believe D

Step-by-step explanation: Hope you get it right

Triangle

Quadrilateral

Pentagon

Hexagon

Heptagon
1. ________________________

2.______________________

3. ______________________

4. ______________________

5. ______________________
sorry 32 points nalang meron ako​

Answers

Answer:

octagon  enneagon decagon hendeka

Step-by-step explanation:

What is the range of y = -x2 + 6x -4?

Answers

Answer:

Hope this helps :)




36. Two marbles are drawn without replacement from a box with 4 white, 6 green, 3 red and 2 blue marbles. Find the probability both marbles are red.

Answers

The probability of drawing both marbles as red is 1/35.

To obtain the probability of drawing two red marbles without replacement, we need to calculate the probability of drawing one red marble on the first draw, and then the probability of drawing a second red marble given that the first marble was red.

The probability of drawing a red marble on the first draw is given by:

P(Red on 1st draw) = (number of red marbles) / (total number of marbles)

                    = 3 / (4 + 6 + 3 + 2)

                    = 3 / 15

                    = 1/5

After the first red marble is drawn, there are now 2 red marbles remaining out of a total of 14 marbles.

The probability of drawing a second red marble given that the first marble was red is:

P(Red on 2nd draw | Red on 1st draw) = (number of red marbles remaining) / (total number of marbles remaining)

                                     = 2 / 14

                                     = 1/7

To find the probability of both marbles being red, we multiply the probabilities of each event:

P(Both marbles are red) = P(Red on 1st draw) * P(Red on 2nd draw | Red on 1st draw)

                       = (1/5) * (1/7)

                       = 1/35

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Can someone plz help me with this!!!

Answers

Answer:

100

Step-by-step explanation:

an isosceles triangle is equal so if one side is 100 degrees, the other side is too

Answer:100 is the answer

Step-by-step explanation

Because the isoscles triangles are those whose two sides are equal

the population of planet is approximately 280,000 in 2006. Plano is growing 7% per year. What is the population inn 2010? YOUR ANSWER SHOULD BE A WHILE NUMBER!!​

Answers

The answer is 2004 because thats when MLK was first brought to my attention and I remember black lives matter allot

Your crazy banker presents another investment opportunity for 2023, where you are told that for the first six months of the year you will have an APR of r_1 compounded monthly, and for the second half of the year the APR will be r_2 compounded daily. Assume that monthly interest compounds on the 28th day of each month, and daily interest compounds at 11:59PM.
1. The banker tells you that for the first six months of the year the effective continuous rate is a_1 = 6%, but they refuse to divulge the value of r_1 directly. You choose to invest $1000 on January 1, 2023, and decide to withdraw all funds from the account on June 30, 2023. What was the value of your account upon withdrawal?
2. The banker then informs you that for the last six months of the year the effective annual rate is c_2 = 10%. You decide that it would be nice to have exactly $4000 in this account at 5PM on December 15, 2023. What amount of money do you need to invest in this account on July 1, 2023, in order to accomplish this goal?

Answers

1. The value of your account upon withdrawal on June 30, 2023, was $1,031.49.

To calculate the value of the account upon withdrawal, we need to use the formula for compound interest. The future value (FV) of the account is given by:

FV = P * (1 + r_1/n)^(n*t)

Where P is the principal amount ($1000), r_1 is the monthly interest rate, n is the number of compounding periods per year (12 for monthly), and t is the time in years (6 months = 0.5 years).

Since the effective continuous rate a_1 is given as 6%, we can determine r_1 using the formula r_1 = ln(1 + a_1). Substituting the value of a_1 = 6% into the equation, we find r_1 = ln(1 + 0.06).

Now we can substitute the values of P, r_1, n, and t into the formula to calculate the future value FV. Plugging in these values, we find that the value of the account upon withdrawal is approximately $1,031.49.

2. To have exactly $4000 in the account on December 15, 2023, you need to invest approximately $3,857.02 on July 1, 2023.

We need to calculate the present value (PV) of the desired future value ($4000) to determine the amount of money to invest. The present value formula is:

PV = FV / (1 + r_2)^n

Where FV is the desired future value, r_2 is the daily interest rate, and n is the number of compounding periods.

Since the effective annual rate c_2 is given as 10%, we can determine r_2 using the formula r_2 = (1 + c_2)^(1/365) - 1. Substituting the value of c_2 = 10% into the equation, we find r_2 = (1 + 0.1)^(1/365) - 1.

Now we can substitute the values of FV, r_2, and n into the present value formula to calculate the required investment. Plugging in these values, we find that you need to invest approximately $3,857.02 on July 1, 2023.

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find x:x+x=20
please find x for me​

Answers

Answer:

x = 10

Step-by-step explanation:

10 + 10 = 20

Good luck with your work!

Answer:

x = 10

Step-by-step explanation:

x + x = 20 can also be interpreted as 2x = 20. This makes it easier to solve for the variable.

To isolate x, do the inverse operation of multiplication. So, we have to divide both sides of the equation by 2.

[tex]\frac{2x}{2}[/tex] = [tex]\frac{20}{2}[/tex]

Simplify this equation for x = 10.

I hope this is helpful. Good luck ^^

Michael is opening a savings account for college. The expression 2,300(1.002)12t represents the dollar amount in the account after t years.

Part A
What does the value 2,300 represent in the expression?

Answers

Answer:

2300 represents the amount Michael initally depoisitedin his savings account.

Step-by-step explanation:

An expression is defined as a set of numbers, variables, and mathematical operations. The value 2,300 represented in the expression is representing the initial amount that was in the account.

What is an Expression?

In mathematics, an expression is defined as a set of numbers, variables, and mathematical operations formed according to rules dependent on the context.

Given that the expression [tex]2,300(1.002)^{12t}[/tex] represents the dollar amount in the account after t years. Therefore, the value 2,300 represented in the expression is representing the initial amount that was in the account.

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2. the critical value, z*, corresponding to a 90onfidence level is 1.96 Suppose that a point (X_1, X_2, X_3) is chosen at random, that is, in accordance with the uniform p.d.f., from the following set S: S = {(x_1, x_2, x_3): 0 x_i 1 for i=1,2,3}. Determine: (a) P ((X_1 1/2) + (X_2 1/2) + (X_3 -1/2) 1/4) (b) P(X_1^2 + X_2^2 + X_3^2 1). For field day, Mrs. Douglas puts students into teams. There are 48 boys and 64 girls. Each team must have the same number of boys and the same number of girls. All students must participate. What is the greatest number of teams Mrs. Douglas can create? BC Corporation is considering replacing an existing machine with a new machine. The new machine can be purchased for $15 million and shipping and installation costs are another $500,000. The new machine will also require an initial $2 million investment in net operating working capital. The current after tax selling price of the existing machine is $3 million. What is the initial investment outlay (year zero cash flow) if the new equipment is purchased? O a. $15.5 million b. $14.5 million c. $17.5 million d. Cannot be determined from the information e. $17 million Last month when Holiday Creations, Incorporated, sold 41,000 units, total sales were $164,000, total variable expenses were $124,640, and fixed expenses were $39,200. Required: 1. What is the company's contribution margin (CM) ratio? 2. What is the estimated change in the company's net operating income if it can increase sales volume by 375 units and total sales by $1,500? (Do not round intermediate calculations.) 1. Contribution margin ratio % 2. Estimated change in net operating income PLS HELP!! I can't figure it out a nurse plans to carry out a research project on the effects of immobility on clients stress levels. of the following statements, which principle is most important when planning this project? explain the balance score card of loblow. 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Though she is not a manager, she is often called on by product managers to offer advice on ergonomic features for new products. It can be said that Hind has _____________ power in ergonomic product design. Referent Transformational Behavioral Expert design a compound, spur gear train for a ratio of 60:1 and diametral pitch of 10. specify pitch diameters and numbers of teeth. sketch the train to scale. Unit 1 Assignment: Ice Cream Simulation Scenario: You have an idea for an Ice Cream shop. You're ready to apply what you have learned about marketing strategy (4 P's) to launch your new business. Select the link below to play the ice cream simulation. In this simulation, you'll need to make several decisions that focus on the Four P's of the Marketing Mix. After you complete the simulation, prepare a 1-page (minimally) paper that addresses the questions below. Simulation: Ice Cream MagnateQuestions: 1. 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The amounts are measured in thousands of dollars and the duration is measured in years.ItemPresent Value($ thousands)Duration(years)90-day bank bill1000.2Treasury notes500.45Commonwealth Government bonds504.0Variable rate mortgage loans100000.07Fixed rate loans30003.5Deposits90000.7CDs30001.0Equity1200What is the average duration of assets?Select one:a.0.86686 yearsb.1.55 yearsc.0.01837 yearsd.1.64 years the executive office of the president is a bureaucracy how do formalized rules benefit The burning rates of two different solid-fuel propellants used in aircrew escape systems are being studied. It is known that the first and the second propellants have a population standard deviation of the burning rate as 3.1, and 4.2, respectively. A random sample of 20 observations from the first propellant and another random sample of 15 observations from the second propellant are tested; the sample mean of the burning rate of the first and the second propellant are 22 centimeters per second and 24 centimeters per second, respectively.A. Test the hypothesis if both propellants have the same mean burning rate at %10 significance level.B. Calculate P-Value.C. How could you answer part A by creating a proper two-sided confidence interval at 10% significance level. Direct materials used Direct labor Manufacturing overhead Total manufacturing costs Beginning work in process inventory Ending work in process inventory Sales revenue Sales discounts Cost of goods manufactured Beginning finished goods inventory Cost of goods available for sale Cost of goods sold Ending finished goods inventory Gross profit Operating expenses Net income 1 $9,700 5,100 8,400 23,200 1,100 7,200 25,000 2,600 17,100 5,000 22,100 18,600 3,500 3,800 2,800 1,000 (a) (b) (c) (d) (e) (f) Case $ 2 3,900 8,100 4,100 16,100 9,100 3,100 28,500 1,500 22,100 3,400 25,500 22,900 2,600 7,100 (g) 5,100 (h) (i) (j) (k) 2,000 (1) Prepare a condensed cost of goods manufactured schedule for Case 1. CASE 1 Cost of Goods Manufactured Schedule + + + + $ + $ $ All the following statements are incorrect, except .Select one: a. Financial ratios should be used in isolation b. Financial ratios aim to meet the needs of external users only c. Financial ratios are easy to interpret but difficult to calculate d. Financial ratios allow comparison and pinpoint some problem areas All of the following are essential components of a formal anti-money laundering program EXCEPT A) an independent audit function B) an accreditation program C) an employee training program D) policies, procedures, and internal controls for detecting and preventing money laundering Each question is worth 10 marks. 1. Comment on the following statement: "Well-functioning money markets are very important in any market economy because they provide an efficient means for economic units to adjust their liquidity positions, and enable central banks to conduct monetary policy." 2. In what ways stock indices are useful to investors? What are the reasons for the rise of index funds and exchange traded funds (ETFs)? 3. Coles, one of the two giant supermarkets in Australia, sells in-house baked bread, cakes and pastry. Thus, it has to purchase a reasonable amount of wheat every month. Amid recent rising wheat prices, it is looking for a way to protect itself. Suggest TWO possible derivatives contracts for Coles to hedge against price risk. Which one would be the best for Coles? 4. Comment on the following statement: "For any country, especially a newly established country, or a country which just went through a war or a revolution, bonds and the bond market play a critical role in its nation building." 5. When facing complex and volatile market conditions, which heuristics financial market participants often apply to assist them with decision making? 6. Explain why Bitcoin and stablecoins could bring about financial instability.