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PRMIA Exam 8007 Topic 1 Question 78 Discussion

Actual exam question for PRMIA's 8007 exam
Question #: 78
Topic #: 1
[All 8007 Questions]

You work for a brokerage firm that charges its client x per share. The volume of trade of a client of type A depends on the per share commission in the following manner. If the commission is x, the client of type A will trade e-ax shares on average each week. What is the optimal commission x that maximizes the income from client A, noting that a is greater than zero?

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Suggested Answer: B

by Mariann at Jul 17, 2024, 06:16 PM

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Kenneth
9 months ago
The Newton-Raphson method is like a math superhero - it can only save the day if the function is continuously differentiable. No kryptonite for this guy!
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Kyoko
9 months ago
Does the Newton-Raphson method come with a guarantee of an error bound? That would be really useful, but I'm not sure it's true. Gonna have to think about this one.
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Lavonna
9 months ago
A) is based on finding a middle point between left and right end of the search interval
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Candida
9 months ago
D) does provide an error bound along with every iteration
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Hoa
9 months ago
B) is based on Taylor series and uses the first derivative
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Janessa
10 months ago
Wait, why can't it be used for non-differentiable functions? That seems a bit too restrictive. I'll go with B on this one.
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Tammi
9 months ago
Markus is correct, it is based on Taylor series and uses the first derivative.
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Markus
10 months ago
But why can't it be used for non-differentiable functions?
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Santos
10 months ago
The Newton-Raphson method is based on Taylor series and uses the first derivative.
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Sabina
10 months ago
I'm not sure, but I think it does provide an error bound.
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Reuben
10 months ago
Do you think it provides an error bound along with every iteration?
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Kimbery
10 months ago
I believe it can be used for continuous but not differentiable functions.
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Sabina
10 months ago
I think it's based on Taylor series and uses the first derivative.
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Reuben
10 months ago
What do you think about the Newton-Raphson method?
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Beula
11 months ago
Hmm, I thought the Newton-Raphson method was all about finding the middle point. Guess I need to brush up on my numerical analysis.
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Latricia
9 months ago
Yeah, it's important to understand the fundamentals of numerical analysis for methods like this.
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Carol
9 months ago
Oh, I didn't know that. I thought it was about finding the middle point.
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Marva
10 months ago
The Newton-Raphson method is actually based on Taylor series and uses the first derivative.
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Belen
11 months ago
The Newton-Raphson method is definitely based on the Taylor series and the first derivative. Choice B is the correct answer here.
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Jonell
10 months ago
It's important to understand the mathematical principles behind it.
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Ryan
10 months ago
I agree, the Newton-Raphson method is definitely based on the Taylor series and the first derivative.
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