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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?

A1

Ba

C42

Da2

Show Suggested Answer

Suggested Answer: B

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

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Kenneth

8 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

8 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

7 months ago

A) is based on finding a middle point between left and right end of the search interval

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Candida

7 months ago

D) does provide an error bound along with every iteration

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Hoa

7 months ago

B) is based on Taylor series and uses the first derivative

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Janessa

8 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

8 months ago

Markus is correct, it is based on Taylor series and uses the first derivative.

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Markus

8 months ago

But why can't it be used for non-differentiable functions?

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Santos

8 months ago

The Newton-Raphson method is based on Taylor series and uses the first derivative.

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Sabina

8 months ago

I'm not sure, but I think it does provide an error bound.

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Reuben

9 months ago

Do you think it provides an error bound along with every iteration?

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Kimbery

9 months ago

I believe it can be used for continuous but not differentiable functions.

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Sabina

9 months ago

I think it's based on Taylor series and uses the first derivative.

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Reuben

9 months ago

What do you think about the Newton-Raphson method?

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Beula

9 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

8 months ago

Yeah, it's important to understand the fundamentals of numerical analysis for methods like this.

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Carol

8 months ago

Oh, I didn't know that. I thought it was about finding the middle point.

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Marva

8 months ago

The Newton-Raphson method is actually based on Taylor series and uses the first derivative.

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Belen

9 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

9 months ago

It's important to understand the mathematical principles behind it.

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Ryan

9 months ago

I agree, the Newton-Raphson method is definitely based on the Taylor series and the first derivative.

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