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Miller-Orr, Excel: New Jersey Company has recorded the following balances in its

ID: 2643577 • Letter: M

Question

Miller-Orr, Excel: New Jersey Company has recorded the following balances in its checking account for 15 consecutive Wednesdays:

Week no.

Balance

Week no.

Balance

Week no.

Balance

1

$11,347

6

$23,343

11

$13,907

2

$12,525

7

$17,673

12

$13,623

3

$16,003

8

$15,985

13

$15,249

4

$17,056

9

$12,078

14

$18,466

5

$21,732

10

$10,049

15

$19,567

What is ?, the standard deviation of the net cash flows?

Week no.

Balance

Week no.

Balance

Week no.

Balance

1

$11,347

6

$23,343

11

$13,907

2

$12,525

7

$17,673

12

$13,623

3

$16,003

8

$15,985

13

$15,249

4

$17,056

9

$12,078

14

$18,466

5

$21,732

10

$10,049

15

$19,567

Explanation / Answer

using excel funtion STDEV.S

hence standard deviation is $3821.76 ......................ans

year Balance 1 11347 2 12525 3 16003 4 17056 5 21732 6 23343 7 17673 8 15985 9 12078 10 10049 11 13907 12 13623 13 15249 14 18466 15 19567 STD 3821.757