2. Each morning, the manager of a bakery has to decide how many cakes they shouldbake for sale that day. The manager knows that on any given day, the demand forcake is a random variable taking the values 0, 1, 2, 3, 4, 5, 6 and 7, each with probability1/8. He also knows that he will make a profit of $2 for each cake that he sells, and aloss of $0.75 for each cake he bakes but doesn't sell. Find the expected profit for theday if he chooses to bake(a) one cake;(b) two cakes;(c) three cakes;(d) four cakes;(e) five cakes;(f) six cakes;(g) seven cakes.How many cakes should he choose to make in order to maximize his expected profit?Hint: If the demand for cake exceeds to the number of cakes baked, how many cakesare sold?

The random variable X indicates the demand for a cake. It takes values 0, 1, 2, 3, 4, 5, 6 and 7,…

Answered: 2. Each morning, the manager of a…

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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A poker player has either good luck or bad luck each time she plays poker. She notices that if she has good luck one time, then she has good luck the next time with probability 0.2 and if she has bad luck one time, then she has good luck the next time with probability 0.4. What fraction of the time in the long run does the poker player have good luck?
Becky and Carla take an advanced yoga class. Becky can hold 29% of her poses for over a minute, while Carla can hold 35% of her poses for over a minute. Suppose each yoga student is asked to hold 50 poses. Let B the proportion of poses Becky can hold for over a minute and C = the proportion of poses Carla can hold for over a minute. What is the probability that Becky's proportion of poses held for over a minute is greater than Carla's? Find the z-table here. O 0.159 O 0,259 0 0.448 O 0,741 Save and Exit Next Submit Math and rem 96 & 7 8 9. 10
Suppose an oil company is thinking of buying some land for $10,000,000. There is a 60%60% chance of economic growth and a 40%40% chance of recession. The probability of discovering oil is 44%44% when there is economic growth and 32%32% when there is a recession. If there is economic growth and the oil company discovers oil, the value of the land will triple. If they do not discover oil, the value of the land will decrease by 10%.10%. If there is a recession and the company discovers oil, the value of the land will increase by 50%.50%. If they do not discover oil, the land will decrease in value by 75%.75%. What is the expected value of the investment? Give your answer to the nearest dollar. Avoid rounding within calculations. $$ Select the correct interpretation of the expected value. The expected value represents what the actual investment value will be for this land purchase of $10,000,000. The company should make the investment because the expected value…
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