Engineering Econ HW8 Q3 3. Two instructors announced that they "grade on the curve," that is, give a fixed percentage ofeach of the various letter grades to each of their classes. Their curves are as follows:GradeAInstructor A8%Instructor B10%B12%15%C50%50%D20%15%F10%10%a. What is the expected value of grade (using A-4, B=3, etc.) for each instructor?b. If a random student came to you and said that his object was to enroll in the class inwhich he could expect the higher grade point average, which instructor would yourecommend?

a)LetX = value of instructor ASo Pmf of X is given asGradexP(x)A40.08B30.12C20.5D10.2F00.1Now from…

Answered: 3. Two instructors announced that they…

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter17: Making Decisions With Uncertainty

Section: Chapter Questions

Problem 8MC

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An investment plan allows investors to deposit a minimum of £1,000 at the beginning of the term, which pays a fixed return rate of 5% per annum. Af- ter a year, investors have to deposit a minimum of £800 with an expected return rate of 3% per annum for the second year and a standard deviation of 2% per annum. a. Find the expected value of the total minimum amount earned after two years of investment. b. Find the standard deviation of the total minimum amount earned after two years of investment.
The HR department is trying to fill a vacantposition for a job with a small talent pool. Validapplications arrive every week or so, and theapplicants all seem to bring different levels ofexpertise. For each applicant, the HR managergathers information by trying to verify variousclaims on resumes, but some doubt about fitalways lingers when a decision to hire or not isto be made. What are the Type I and II decision error costs? Which decision error is more likely tobe discovered by the CEO? How does this affectthe HR manager’s hiring decisions?
If a team from Trilogox came up with the following PFMEA exercise results during its risk exposure analysis: Risk Occurrence Probably will occur Outcome Detection Financial Cost increase by Detection method has 30% medium effectiveness Marketing Probably will not Cost increase by Detection method has medium effectiveness Cost increase by Detection method has medium effectiveness Cost increase by Detection method has 2% occur Quality Probably will occur 40% Capability Probably will occur 10% medium effectiveness Materials Probably will occur Cost increase by Detection method has medium effectiveness Cost increase by Detection method has 10% Labor Probably will occur 40% medium effectiveness b. Which are the most critical risks by identifying the critical values? What actions do you recommend? Evaluate the risks by assigning one degree of leniency in their value.
The market demand for the newest smartphone is 1 million units. The selling price for the LG phone is $400.00. The cost is $100 per unit. LG currently has market share of 10 percent. The marketing and sales expense is $5 million. Assume market demand grows by 20%. Given the 20% increase in market demand, LG maintains its market share of 10%, selling price of $400, unit cost of $100, and marketing and sales expense of $5 million. What is the new net marketing contribution (NMC)? O a. $36 million Ob. $31 million O. S7 million O d. $12 million
Sh.11.
Only typed answer and please don't use chatgpt otherwise I downvote the answer Q = 12S1/2P-2. Q is number of newspapers sold and S is number of inches of news printed. The cost of reporting S units is $10S. The cost of printing one copy of the newspaper is $0.08, so the total cost of Q = $10S + .08Q. How many copies will be sold at the profit maximizing price when S = 100? Round (up) to the nearest newspaper.
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Who answered the (a) part, Please complete answer for the (b) part
A risk-neutral firm produces chemical products, and its objective is to maximize expected profit. There is a risk that there will be an accident during the production process, and dangerous chemical products will be released into the ocean, polluting the water. To reduce the risk of an accident, the firm can choose Low or High investment in safety. Low Investment in Safety_ Cost for firm= $0 Probability of an Accident = 80% Probability of No Accident =20% High Investment in Safety Cost for firm= $150 Probability of an Accident = 20% Probability of No Accident = 80% The Government wants to reduce the risk of an accident, but the Government cannot observe the fir m's investment in safety. Therefore there is a moral hazard problem. However, the Government can observe whether an accident occurred or not. So the government decides to create a fine (penalty): if an accident occurs, the firm must pay a fine F to the Government. If an accident does not occurs, then the firm does not have to…
I need help with 2 and 3
Hello can any one help with this Economics question: A contractor spends Dollar 3,000 to prepare for a bid on a construction project which, after deducting manufacturing expenses and the cost of bidding, will yield a profit of dollar 25,000 if the bid is won. If the chance of winning the bid is ten per cent, compute his expected profit and state the likely decision on whether to bid or not to bid?
efer to the following table showing the probability distribution of payoffs from an activity to answer the question below: Units Payoff Probability 1 $30 10% 2 40 25% 3 60 30% 4 50 20% 5 10 15% What is the expected value?

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