Problem 1

X is a 3 x 3 correlation matrix (as given below) which describes the movement of the market price of three commodities A, B and C respectively:

1. if the price of the commodity A goes up by 20% then will the price of commodity      C go up or down? And what will be the magnitude of the movement?
2. the diagonals of the matrix X is one. What does this mean?
3. Is the identity true or false? ( is an identity matrix with one on the
     diagonals and zero everywhere else). Explain.

Problem 2

If only x and y are variable quantities (and rest are all constants) then which of the following represents a straight line?

(a)

(b)

(c)

(d)

Problem 3

An infinite identity is given in the form of:

(a) Can the value of y be found out? (if your answer is "no" then go to the next      question)
(b) Will y have a unique (only one) value or can it have multiple values?
(c) What is the approximate value(s) of y ? (please use only a pen and paper to      calculate y )

Problem 4

If John is HIPO and Kate is LUBD then Pete would be:

(a) QUFF
(b) FUQF
(c) LUQF
(d) FUJQ

Problem 5

There are an infinite number of monkeys each clapping away on the keyboard of an infinite array of computers. The chances of one of them producing Shakeaspere's Hamlet is:

(a) very high;
(b) low
(c) very low;
(d) impossible;

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