Dear E204-1, E204-2 Students,
I am attaching a set of problems for your review.  They are only sample
problems for discussion during the review session and should not to be
deemed to have special significance for the in-class final exam.  Of course,
the general concepts will have to be somewhat relevant/helpful.  I have not
covered every aspect of the course in the questions and the exam questions
may well deal with other topics/models.  I have also included solutions,
but you should think about the problems first -- the value is in your working
on the problems as much as it is seeing the answer.

As for the take-home exam, one student inquired whether parts (b), (c), and
(d)
were separate or cumulative questions in Problem  1-- They are separate such
that each change is a change to the original model without other changes.
In Problem 2, I refer to "secondary" unit, and by this I meant the Backup
instrument.
When I ask you to estimate the probabilities (in Problem 2) from
"the simulation results only," I intend that you will not derive the
theoretical result
from probability concepts.
--Tom McCullough
 - E204_Sample Exam Probs.doc
 - E204_Sample Exam Probs+Solutions.doc

=======================================================================
Tom McCullough
Senior Lecturer
Haas School of Business
University of California at Berkeley
==========================================================================