1. A company is manufacturing blue jeans at a cost of $9.99 per pair. They plan to put a price tag of $44.99per pair. They plan to produce 400,00 pairs. Any unsold units, can be sold in the after market forS14.99/pair.Demand (units)Demand Probability95,000200,000275,000350,0000.150.400.350.10What is the probability that their gross income will be over $15,00,000? They also want to know want is theprobability that their net profit will be less than $5,000,000

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Answered: 1. A company is manufacturing blue…

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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Tonto Silverheels is a loan processor at the Loan Arranger, a business specializing in home refinance. Forty percent of the loan applications received by Tonto will qualify for a loan. What is the probability that for the next 20 loan applications that Tonto receives, the number qualifying for a loan is... a. 10 or fewer? b. Between 6 and 10? c. Exactly 6? d. Tonto gets a $200 commission on each qualifying loan, what is Tonto’s expected total commission from these 20 applications?
A restaurant is planning to open in town. They estimate that there is a 50% probability that is will make $50,000, a 15% probability that it will break even, and a 35% probability that it will lose $28,000. Find the expected profit.
A new applicant, age 32, is applying for a loan. Using the table below, what is the estimated probability the loan will default using k= 3. Record Age 34 24 31 32 44 53 1 2 3 4 5 6 Marital Loan Single $ 4,800.00 Other $16,000.00 $ 9,000.00 $10,000.00 $12,000.00 $14,000.00 Single Single Married Single Risk High High LOW Medium High High Default Yes No No No Yes Yes
Your financial planning company has a large database of clients. There is a 0.479 probability that a client has a 401k. There is a 0.158 probability a client has a Roth IRA. There is a 0.062 probability a client has both a 401K and a Roth IRA. What is the probability that a client has a 401K or a Roth IRA? Answer = (Round to three decimal places)
20.20 Life insurance. You might sell insurance to a 20-year-old friend. The probability that a man aged 20 will die in the next year is about 0.0007. You decide to charge $2000 for a policy that will pay $1 million if your friend dies. a. What is your expected profit on this policy? b. Although you expect to make a good profit, you would be foolish to sell a single policy only to your friend. Why? c. A life insurance company that sells thousands of policies, on the other hand, would do very well selling policies on exactly these same terms. Explain why
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A 30-year-old woman wants to purchase a $300,000 one-year life insurance policy. What should the insurance company charge the woman for the policy if it wants an expected profit of $60? The company should charge her $ Age 20 30 40 50 Probability of Female Death 0.00070 0.00080 0.00095 0.00305 C
A 38 -year-old woman purchases a $200,000 term life insurance policy for an annual payment of $370. Based on a period life table for the U.S. government, the probability that she will survive the year is 0.999052. Find the expected value of the policy for the insurance company. Round to two decimal places for currency problems.
1.A husband and wife take out an insurance policy for a 20 year term. It is estimated the probability of being alive in 20 years time is 0.8 for the husband, and 0.9 for the wife. What is the probability that in 20 years time, just one of them will be alive. Explain your reasoning carefully.
Richies insurance company offers a 250,000 life insurance policy for a premium of $750 per year. If the probability you live through the year is .9977 what is the expected value to the insurance company
Redundancy in Computer Hard Drives It is generally recognized that it is wise to back up computer data. Assume that there is a 3% rate of disk drive failure in a year (based on data from various sources, including lifehacker.com). a. If you store all of your computer data on a single hard disk drive, what is the probability that the drive will fail during a year? b. If all of your computer data are stored on a hard disk drive with a copy stored on a second hard disk drive, what is the probability that both drives will fail during a year? c. If copies of all of your computer data are stored on three independent hard disk drives, what is the probability that all three will fail during a year? d. Describe the improved reliability that is gained with backup drives.
A typical fuel tanker can carry up to 40,000 L of fuel and can be loaded in about 20 minutes. The shift supervisor comes to check on one of the tankers, not knowing how much time is left in the fill process. a. What is the probability that there is less than 5,000 L remaining? b. What is the probability that there is between 15,000 L and 25,000 L of fuel remaining? c. What volume of fuel would the shift supervisor expect the tanker to contain? L

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