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Fall 2002 - Course 3 Solutions

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Question #39<br />

Answer: D<br />

Let A x and a x be calculated with µ x t<br />

* *<br />

b g and δ = 006 .<br />

b g<br />

Let Ax<br />

and ax<br />

be the corresponding values with µ x t<br />

increased by 0.03 and δ decreased by 0.03<br />

a<br />

a<br />

x<br />

*<br />

x<br />

1 Ax<br />

= − 0.<br />

4<br />

= = 6.<br />

667<br />

δ 0.<br />

06<br />

= a<br />

x<br />

L<br />

N<br />

M<br />

t<br />

*<br />

¥ - µ x s + 0. 03 ds -0.<br />

03t<br />

x<br />

0<br />

0<br />

Proof: a = e e dt<br />

=<br />

=<br />

z<br />

z<br />

z<br />

= a<br />

* *<br />

x x x<br />

A = 1− 003 . a = 1−<br />

0.<br />

03a<br />

0<br />

x<br />

¥<br />

¥<br />

0<br />

t<br />

x<br />

0<br />

e e e dt<br />

-<br />

z<br />

-z<br />

t<br />

z0<br />

µ<br />

d<br />

µ<br />

= 1−<br />

003 . 6667 .<br />

= 08 .<br />

x<br />

b g<br />

b g<br />

b g<br />

s ds<br />

s ds<br />

-0. 03t<br />

-0.<br />

03t<br />

-0.<br />

06t<br />

e e dt<br />

b gb g<br />

i

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