Colson Company has a line of credit with Federal Bank. Colson can borrow up to $800,000 at any
time over the course of the calendar year. The Unit 10 Template shows the prime rate expressed
as an annual percentage along with the amounts borrowed and repaid during the year. Colson
agreed to pay interest at an annual rate equal to 2 percent above the bank's prime rate. Please
note that the interest rate for each month must be converted into a monthly rate by dividing by 12.
Funds are borrowed or repaid on the first day of the month. Interest is payable in cash on the last
day of the month. The interest rate is applied to the outstanding monthly balance. For example,
Colson pays ((4 percent + 2 percent)/12) monthly interest on $80,000 for the month of
January.
Construct a chart calculating the loan balance at the end of each month and the interest expense
for each month. Be sure the dollar amounts are formatted in dollars..
Let X1Xn be a random sample from a Binomial1 populatio.pdf
1. Let X1,,Xn be a random sample from a Binomial(1,) population, where (0,1). We know that the
MLE of is i=1nXi/n. Thus, if we want to estimate 2=(1), the variance of the Binomial (1,) population,
a reasonable estimator would be ^2:=ni=1nXi(1ni=1nXi). If we denote X:=i=1nXi, then XBin(n,) and
^2=nX(1nX). 1 (a) Show that ^2 is a biased estimator of 2. (b) Is ^2 an asymptotically unbiased
estimator of 2 (see Definition 6.5 .3 in the notes)?
