Finite Projects

Listed below are the various projects that will be required throughout the semester. Each of these are worth 25 points and will be due the day following the exam for the appropriate chapter. These projects take you above and beyond the material covered in the book or require outside data acquisition. You may work in groups of up to three people per project. Turn in one project with all group member's names on it. Plan on reading the section of the book dealing with the matter before we cover it in class; you will not always have time to finish the project if you wait until we do. Give me the results of any surveys along with the projects.

Project 1, Chapter 4

Your project is to plan a retirement fund for yourself. To simplify calculations, assume all transactions - starting of annuity fund, retirement, and death - occur on your birthday. Assume a nominal interest rate of 6% has been guaranteed for the remainder of your life.

Project 2, Chapter 5

Amtrak® has several lines running in Illinois with Bus links between other cities. Consider the cities: Bloomington, Carbondale, Chicago, Galesburg, Joliet, St. Louis, and Urbana. The train or bus stops at each town along the route, but for purposes of this project, only consider the towns listed above. See Amtrak's route information on the world wide web

Project 3, Chapter 7

For each of the winning poker hands listed below, give the number of ways that hand can be obtained and the probability of obtaining that hand.

Project 4, Chapter 8+

Consider this gambler's ruin problem: Two people have a total of five $1 bills June between them. A fair coin is tossed. If a head appears, then player A gets $1; if a tail appears, then player B gets $1. The game continues until one player has all the money and the other player is ruined (hence the name).

This game can be analyzed using absorbing Markov Chains.

Last updated: Sunday, June 9, 1996 at 9:35 pm
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