1. An accounting firm noticed that of the companies it audits, 85% show no inventory shortages,10% show small inventory shortages, and 5% show large inventory shortages. The firm hasdevised a new accounting test for which it believes the following probabilities hold:P(company will pass test | no shortage) = .90P(company will pass test | small shortage) = .50P(company will pass test | large shortage) = .20a. If a company being audited fails this test, what is the probability of a large or small inventoryshortage?b. If a company being audited passes this test, what is the probability of no inventory shortage?

1) According to the given information,85% show no inventory shortages. That is, P(N) = 85% = 0.8510%…

Answered: 1. An accounting firm noticed that of…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

See similar textbooks

Similar questions

Q2. (a) A construction company receives 68% of its ready mix concrete from supplier A and the remainder is supplied by supplier B. From records of previous consignments, it is known that the probability that the ready mix concrete from supplier A is of low quality and needs to be returned is 0.03, while the probability that the ready mix concrete from supplier B needs to be returned is 0.06. ) Display these probabilities on a tree diagram. (i) Calculate the probability that a consignment of ready mix concrete delivered to the construction company is of low quality and needs to be returned. (ii) Given that a consignment of ready mix concrete needs to be returned, calculate the probability that it was supplied by supplier A. (b) A company is tendering for 6 new contracts. Penalties will be applied if any of the contracts are not completed on time. The cost due to not completing a contract on time must be accounted for in the tender price. In recent years, this company has completed 20…
I need help with this please
An inspector of the Alaska Pipeline has the task of comparing the reliability of two pumping stations. Each station is susceptible to two kinds of failure –pump failure and leakage. When either (or both) occur, the station must be shut down. The data at hand indicate the following probabilities prevail Station P(pump failure) P(leakage) P(both) 1 0.07 0.10 0 2 0.09 0.12 0.06 Which station has the higher probability of being shut down?
For Part B. Options are Excellent, Good, Fair for each blank.
Q. 1 Suppose that 4.5% of all adults over 50 have cancer. A certain physician correctly diagnoses 94% of all adults over 50 with cancer as having the disease and incorrectly diagnoses 4% of all adults over 50 without cancer as having the disease. (i) Draw a tree diagram and label it with appropriate probabilities. (ii) Find the probability that a randomly-selected adult over 50 is diagnosed as not having cancer. (iii) Find the probability that a randomly-selected adult over 50 actually has cancer, given that he/she is diagnosed as not having cancer.
An airline offers "advance-purchase" fares to customers who buy their tickets at least four weeks before the flight. The airline has noticed that 80% of its customers who buy tickets don't take advantage of advance-purchase fares and the remaining 20% do. The no-show rate for those who don't have advance-purchase fares is 25%, while for those who do have them, it is only 15%. (a) Calculate the probabilities labeled on the tree diagram below. (Give answers correct to three decimal places.) A tree diagram with 6 branches is shown. The tree diagram begins at a point and an upper and lower branch extend from this point to the right. From each of these two branches two more upper and lower branches extend to the right. The branches extending from the first point from top to bottom are labeled a and b and end at points labeled "no advance purchase" and "advance purchase" respectively. The branches extending from "no advance purchase" and "advance purchase" from top to bottom are labeled…
Let S be the educational attainment of individuals in a town, with values S-0 for less than high school and S=1 for high school or above. Also, let Y be their individual annual income with values Y-O for less than $20,000, Y-1 for between $20,000 and $40,000, and Y=2 for above $40,000. Consider now the following joint probabilities: Y-0 (less than $20K) Y-1 ($20K-$40K) Y-2 (more than $40K) 0.03 0.01 0.36 0.33 SIY S-0 (Less than HS) 0.05 Y-1 (HS or more) 0.22 Determine the conditional standard deviation of the level of educational attainment given that the individual annual income is between $20,000 and $40,000.
b) Blue Star United, a major electronics distributor, has hired Southwest Forecasters, a market research firm, to predict the level of demand for its new product that combines cell phone and complete Internet capabilities at a price substantially below its major competitors. As part of its deliverables, Southwest provides a rating of Poor, Fair, or Good, on the basis of its research. Prior to engaging Southwest Blue Star, management concluded the following probabilities for the market-demand levels: P(Low)== P(s1) = 0.1 P(Moderate) = P(s2) = 0.5 P(High) = P(s3) = 0.4 Southwest completes its study and concludes that the market potential for this product is poor. What conclusion should Blue Star reach based on the market-study results? Proportion of Assessments Provided by a Market-Research Organization Prior to Various Levels of Market Demand (Conditional Probabilities) are given in, the following table: Market Demand That Actually Occurred After Assessment Was Provided Moderate Demand…

Recommended textbooks for you

MATLAB: An Introduction with Applications

Statistics

ISBN:

9781119256830

Author:

Amos Gilat

Publisher:

John Wiley & Sons Inc

Probability and Statistics for Engineering and th…

Statistics

ISBN:

9781305251809

Author:

Jay L. Devore

Publisher:

Cengage Learning

Statistics for The Behavioral Sciences (MindTap C…

Statistics

ISBN:

9781305504912

Author:

Frederick J Gravetter, Larry B. Wallnau

Publisher:

Cengage Learning

MATLAB: An Introduction with Applications

Statistics

ISBN:

9781119256830

Author:

Amos Gilat

Publisher:

John Wiley & Sons Inc

Probability and Statistics for Engineering and th…

Statistics

ISBN:

9781305251809

Author:

Jay L. Devore

Publisher:

Cengage Learning

Statistics for The Behavioral Sciences (MindTap C…

Statistics

ISBN:

9781305504912

Author:

Frederick J Gravetter, Larry B. Wallnau

Publisher:

Cengage Learning

Elementary Statistics: Picturing the World (7th E…

Statistics

ISBN:

9780134683416

Author:

Ron Larson, Betsy Farber

Publisher:

PEARSON

The Basic Practice of Statistics

Statistics

ISBN:

9781319042578

Author:

David S. Moore, William I. Notz, Michael A. Fligner

Publisher:

W. H. Freeman

Introduction to the Practice of Statistics

Statistics

ISBN:

9781319013387

Author:

David S. Moore, George P. McCabe, Bruce A. Craig

Publisher:

W. H. Freeman

SEE MORE TEXTBOOKS