Mean = (1+7+3+3+6+4)/6 = 4 Data arranged in ascending order: 1,3,3,4,6,7 Median =
(3+4)/2 = 3.5

Enter into the derivative contract for a cost of $60, for the expected payoff is 0.50 * $100 +
0 .50 * $50 = $75. That is a 25% return on your investment in one year, greater than the 5% that could be made by investing the $60 at interest. This is an example of the investment consequences of inconsistent probabilities. The present value of the contract should be $75/1.05 = $71.43. Thus, an arbitrage opportunity is present. On an expected value basis, you can buy an asset worth $71.43 for only $60.

GDP is calculated here by summing personal consumption(200), gross private domestic investment(500), government consumption and investment (100 + 40), and net exports (exports (120)- imports(90)) = $870.

Under accelerated depreciation, asset book values are lower than those under the straight line method in the earlier years. Asset turnover is consequently higher under the former.