Statistical and financial tables

Table VIII
Answers
Present
Present
value annuity factors.
value of £1 received annually for n years C- (l+r
r
rn)
Periods Interest rates (r) %
Assessment and re
(n) 1% 2% 4% 6% 8% 10% 12% 14% 15% AI. P(A entering marke
1 0.990 0.980 0.962 0.943 0.926 0.909 0.893 0.877 0.870 P(B entering marke =
2 1.970 1.942 1.886 1.833 1.783 1.736 1.690 1.647 1.626
3 2.941 2.884 2.775 2.675 2.577 2.487 2.402 2.322 2.283 P(C entering marke =
4 3.902 3.808 3.610 3.465 3.312 3.170 3.037 2.914 2.855 i) No competitor en-
5 4.853 4.713 4.452 4.212 3.996 3.791 3.605 3.433 3.352 p
= P(A.) x pcB)
6 5.795 5.601 5.242 4.917 4.623 4.355 4.111 3.889 3.784
7 6.728 6.472 6.002 5.582 5.206 4.868 4.564 4.288 4.160 = 0.144
8 7.652 7.325 6.733 6.210 5.747 5.335 4.968 4.639 4.487 ii) A and B to enter
9 8.566 8.162 7.435 6.802 6.247 5.759 5.328 4.946 4.772
10 9.471 8.983 8.111 7.360 6.710 6.145 5.650 5.216 5.019 = P(A) x P(B)
11 10.368 9.787 8.760 7.887 7.139 6.495 5.988 5.453 5.234 = 0.224
12 11.255 10.575 9.385 8.384 7.536 6.814 6.194 5.660 5.421
13 12.114 11.343 9.986 8.853 7.904 7.103 6.424 5.842 5.583 iii) Only 1 competitor
14 13.004 12.106 10.563 9.295 8.244 7.367 6.628 6.002 5.724 = P(A only compe
15 13.865 12.849 11.118 9.712 8.559 7.606 6.811 6.142 5.847
16 14.718 13.578
= (0.4 x 0.3 0.- -
11.652 10.106 8.851 7.824 6.974 6.265 5.954
17 15.562 14.292 12.166 10.477 9.122 8.022 7.120 6.373 6.047 = 0.468
18 16.328 14.992 12.659 10.828 9.372 8.201 7.250 6.467 6.128 A2. Let 1 = Improvement
19 17.226 15.678 13.134 11.158 9.604 8.365 7.366 6.550 6.198 T = Treatment rec
20 18.046 16.351 13.590 11.470 9.818 8.514 7.469 6.623 6.259
21 18.857 17.011 14.029 11.764 10.017 8.649 7.562 6.687 6.312 a) Prob. (I) = Prob.
22 19.660 17.658 14.451 12.042 10.201 8.772 7.645 6.743 6.369
23 20.456 18.292 14.857 12.303 10.371 8.883 7.718 6.792 6.399
24 21.243 18.914 15.247 12.550 10.529 8.985 7.784 6.815 6.434
25 22.023 19.523 15.622 12.783 10.675 9.077 7.843 6.873 6.464 600 125
=--+--=
1,000 1,000
Periods Interest rates (r)% =0.725
(n) 16% 18% 20% 22% 24% 25% 26% 28% 30%
1 0.862 0.847 0.833 0.820 0.806 0.800 0.794 0.781 0.769
2 1.605 1.566 1.528 1.492 1.457 1.440 1.424 1.392 1.361 b)
3 2.246 2.174 2.106 2.042 1.981 1.952 1.923 1.868 1.816
4 2.798 2.690 2.589 2.494 2.404 2.362 2.320 2.241 2.166
5 3.274 3.127 2.991 2.864 2.745 2.689 2.635 2.532 2.436
6 3.685 3.498 3.326 3.167 3.020 2.951 2.885 2.759 2.643
7 4.039 3.812 3.605 3.416 3.242 3.161 3.083 2.937 2.802
8 4.344 4.078 3.837 3.619 3.421 3.329 3.421 3.076 2.925
9 4.607 4.303 4.031 3.786 3.566 3.463 3.366 3.184 3.019
10 4.833 4.949 4.192 3.923 3.682 3.571 3.465 3.269 3.092 Prob. (T)
11 5.029 4.636 4.327 4.035 3.766 3.656 3.544 3.335 3.147
12 5.197 4.793 4.439 4.127 3.851 3.725 3.606 3.387 3.190 600
=---'
13 5.342 4.910 4.533 4.203 3.912 3.780 3.656 3.427 3.223 1,000
14 5.468 5.008 4.611 4.265 3.961 3.824 3.965 3.459 3.249
15 5.575 5.092 4.675 4.315 4.001 3.859 3.726 3.483 3.268 = o .I~-
16 5.669 5.162 4.730 4.357 4.033 3.887 3.751 3.503 3.283 Therefore, Prob.
17 5.749 5.222 4.775 4.391 4.059 3.910 3.771 3.518 3.295
18 5.818 5.273 4.812 4.419 4.080 3.928 3.786 3.529 3.304 0.6
19 5.877 5.316 4.844 4.442 4.097 3.942 3.799 3.539 3.311 0.7-
20 5.929 5.353 4.870 4.460 4.110 3.954 3.808 3.546 3.316
21 5.973 5.384 4.891 4.476 4.121 3.963 3.816 3.551 3.320 =O.
22 6.011 5.410 4.909 4.488 4.130 3.970 3.822 3.556 3.323
23 6.044 5.432 4.925 4.499 4.137 3.976 3.827 3.559 3.325
24 6.073 5.451 4.937 4.507 4.143 3.981 3.831 3.562 3.327 e) 750 volunteers r
25 6.097 5.467 4.948 4.514 4.147 3.985 3.834 3.564 3.329 whilst 250 volun

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