1) Suppose that next year the U.S. will be in one of the following economic conditions: Boom, Moderate Growth, Recession, or Depression. The probability that each economic condition will occur, and that a jewelry store will earn profits within that broader economic condition are listed below:

Economics condition |
Profit |
probability |

Boom |
400000 |
0,4 |

moderategrowth |
300000 |
0,3 |

recession |
100000 |
0,2 |

depression |
-500000 |
0,1 |

2) The standard deviation of the jewelry store’s profits next year (rounded to the nearest dollar) is ?

3) The expected profit of the jewelry store during the next year is?

4) What is the complete set of numbers for which f(*x*) = *x*^{3} + 2*x*^{2} – *x* is concave?

5) Today you deposited $10,000 in a savings account that pays 6% annual interest, compounded semiannually. In 5 years, how much money will you have in your account (rounded to the nearest dollar)?

6) Today you put $1000 in the bank. Your bank pays 5% interest, continuously compounded. In 3 years, how much money will you have in the bank (rounded to the nearest dollar)?

7) Suppose that you draw two cards from a deck. After drawing the first card, you **do not** put the first card back in the deck. What is the probability (rounded to the nearest ten thousandth) that both cards are diamonds?