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A positive value for a in (26) indicates that the company can sell a certain amount of its products, even in the case of zero CHDD. Similarly, a positive value for b in the same equation represents a positive relationship between sales and CHDDs.
The aim is to construct a relationship between CHDD and profit functions to ascertain the magnitude of the effect of temperature on the company.
Figure 1 constructs a relationship between CHDD and profit such that every CHDD value now represents a monetary value in terms of positive and negative profits.
Now, the company's risk can be defined as having a low value of CHDD for a certain period that leads to a loss.
Let K be the strike value, x = CHDD, let f(x) be the probability density function of CHDD, and tick the monetary value for each CHDD.
Miguel Maria Lisboa" en Cadernos do chdd, ano 1, num.
Miguel Maria Lisboa", Encarregado de Negocios do Imperio do Brasil no Chile" en Cadernos do chdd, ano 1, num.
(1) Vease Centro de Historia e Documentacao Diplomatica-Fundacao Alexandre de Gusmao, "A politica do Imperio na America Latina: as reunioes do Congresso Americano" en Cadernos do CHDD, ano 2, num.
CHDD = f2 (CEB, WEMP, FAMC, AGR, PNRM, WATE, ELEC, MACH, TRAN, PRES, YSIN, HMIG, HEMP, YWUC, YHUC).
WEMP = f4 (CEB, CHDD, FAMC, AGR, MACH, TRAN, PRES, AGEW, AGEH, HMIG, WBML, HEMP, YWUC, YHUC).
CEB = f1 (CHDD, AGR, RES, PNRM, MACH, PRES, AGEW, YSIN, WBML, HEMP, YWUC, YHUC, EUSE, WEMP, FAMC).
CHDD = f2 (CEB, AGR, PNRM, WATE, ELEC, MACH, TRAN, PRES, YSIN, HMIG, HEMP, YWUC, YHUC, WEMP, FAMC).
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