A broker has a bonus scheme to encourage profitable trading. Under the rules of the scheme, any trader who drops below his daily target more than three times in a two-week period (10 working days) will forfeit his bonus at the end of the period. If the probability that an employee will be below target on any one day is 0.15, how many bonuses will be lost by 100 traders in a 50-week year? (Assumptions of independence are valid here). а. 50 b. 10 С. 125 d. 100

A broker has a bonus scheme to encourage profitable trading. Under the rules of the scheme, any trader who drops below his daily target more than three times in a two-week period (10 working days) will forfeit his bonus at the end of the period. If the probability that an employee will be below target on any one day is 0.15, how many bonuses will be lost by 100 traders in a 50-week year? (Assumptions of independence are valid here). а. 50 b. 10 С. 125 d. 100

Name: A broker has a bonus scheme to encourageprofitable trading. Under the
Uploaded: 2024-03-20T07:06:41.000Z
Channel: Bartleby
Description: A broker has a bonus scheme to encourageprofitable trading. Under the rules of thescheme, any trader who drops below his dailytarget more than three times in a two-weekperiod (10 working days) will forfeit his bonusat the end of the period. If the p

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...

See similar textbooks

Related questions

Q: Brandybuck Insurance Company (BIC) is deciding whether to insure the lives of those leading a quest…

A: It is needed to find the expected value of this insurance policy to the company.

Q: Brandybuck Insurance Company (BIC) is deciding whether to insure the lives of those leading a quest…

Q: A company gives each worker a cash bonus every Friday, randomly giving a worker an amount with these…

A: Given data: An amount with these probabilities: 10-0.75, $50-0.25. To find: worker's expected…

Q: (a) At this time, find the probability that a customer will invest in either tax-free bonds or…

A: Define some events A : a customer will invest in tax-free bonds. B : a customer will invest in…

Q: Suppose that fish inhabiting the river in the town of Glenmeadow have a 30% rate of parasite…

A: As given, The fish inhabiting the river in the town of Glenmeadow has a 30% rate of parasite…

Q: What is the probability that at least two people in a room of 30 share the same birthday, assuming…

Q: Consider a community of 100 people, where each individual has $10,000 as a total wealth. Total…

A: Given information: Number of people in the community = 100 people Wealth of each individual = $10000…

Q: the potential for new clients to alter the total revenue received by his business. Each new client…

Q: Would Priyanka be willing to spend £500 to purchase an insurance policy that would fully insure her…

A: Priyanka has an income of £90,000 and is a von Neumann-Morgenstern expected utility maximiser with…

Q: D. In new york city, the probability that a working age adult gets too little sleep (< 7 hours…

Q: Suppose that 50% of all babies born in a particular hospital are boys. If 6 babies born in the…

Q: The annual exceedance probability of a 10-year flood is 10%. True False

A: The annual exceedance probability of a 10-year flood is 10%.

Q: Dility that a random sample of size 7 out of 15 daily allowance of 50 or more? E SOLUTION ON EXCEL…

A: classmate Daily Allowance 1 20 2 50 3 150 4 50 5 50 6 50 7 70 8 50 9 100 10 30…

Q: Suppose X and Y have joint pdf f(x, y) = {ax²y (ax²y, x² ≤ y ≤ 1 0, otherwise

Q: Brandybuck Insurance Company (BIC) is deciding whether to insure the lives of those leading a quest…

A: Final answer is: 5446 silver coins

Q: Suppose that 45% of all babies born in a particular hospital are boys. If 8 babies born in the…

A: Step 1: Given that Probability of being boy (p) = 45% that is p = 0.45 selected babies n = 8…

Q: 4. If a person rolls doubles when he tossed two dice, he wins Php5. For the game to be fair, how…

A: 4) It is given that a person rolls two dice. Thus, the total number of all possible outcomes is…

Q: term insurance with sum insured $1000 payable at the end of the year of death. Let us suppose that…

Q: Brandybuck Insurance Company (BIC) is deciding whether to insure the lives of those leading a quest…

A: Given: BIC charges a premium = 6591 silver coins. BIC pay a death benefit = 47460 The probability of…

Q: A $1 slot machine at a casino is set so that it returns 97% of all the money put into it in the…

A: Given that the winning is in the form of huge but low-probability jackpots. So we do not know the…

Q: portfolio manager is selecting stocks to add into his investment portfolio. Assume 50% of the stocks…

Q: The probability that a newly matriculated student will not get to the second year of their studies…

Q: The outcome of interest to be measured in an expirement is called the? (Confounding, independent,…

A: Given that The outcome of interest to be measured in an expirement is called the (Confounding,…

Q: 13. Final: Assume choosing eight randomly selected ColorSmart-5000 televisions that last five years…

A: Given information : choosing eight randomly selected ColorSmart-5000 televisions that last five…

Q: ree couples and two single individuals have been invited to an investment seminar and have agreed to…

Q: A duelist playing the "Yu Gi Oh" trading card game wants to win using the Exodia cards. Assuming the…

Q: If BIC charge

Q: (a) what is the probability that the fund manager will have 8 or more good years out of 10 years?…

A: Here given Assume that a fund manager has no idea what he/she is doing and is esentially flipping a…

Q: You manage a call center and your job is to make sure the employees aren’t slacking off when they…

Concept explainers

Contingency Table

A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.

Binomial Distribution

Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.

Topic Video

Question

A broker has a bonus scheme to encourage
profitable trading. Under the rules of the
scheme, any trader who drops below his daily
target more than three times in a two-week
period (10 working days) will forfeit his bonus
at the end of the period. If the probability that
an employee will be below target on any one
day is 0.15, how many bonuses will be lost by
100 traders in a 50-week year? (Assumptions
of independence are valid here).
а.
50
b.
10
С.
125
d.
100

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

$Discrete Probability Distributions$

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, probability and related others by exploring similar questions and additional content below.

Similar questions

Brandybuck Insurance Company (BIC) is deciding whether to insure the lives of those leading a quest to Moria. Based on past experience, the probability of surviving such a quest is 91.8%. If BIC charges a premium of 8,449 silver coins and would pay a death benefit of 87,797 silver coins if the insured were to die, what is the expected value of this insurance policy to BIC? Round to the nearest silver coin as needed. If the expected value is a loss to BIC, enter your answer as a negative number.
A company prices its tornado insurance using the following assumptions:• In any calendar year, there can be at most one tornado. • In any calendar year, the probability of a tornado is 0.08. • The number of tornadoes in any calendar year is independent of the number of tornados in any other calendar year.Using the company's assumptions, calculate the probability that there are fewer than 3 tornadoes in a 17-year period. 21. A company prices its tornado insurance using the following assumptions:• In any calendar year, there can be at most one tornado. • In any calendar year, the probability of a tornado is 0.08. • The number of tornadoes in any calendar year is independent of the number of tornados in any other calendar year.Using the company's assumptions, calculate the probability that there are fewer than 3 tornadoes in a 17-year period. 22. Mrs. Bothe filled out a bracket for the NCAA National Tournament. Based on her knowledge of college basketball, she has a 0.52 probability…
a) Suppose that you have a job paying $50,000 per year. With a 15% probability, next year your wage will be reduced to $20,000 for the year. 1. What is your expected income next year? 11. Suppose that you could insure yourself against the risk of reduced consumption next year. What would the actuarially fair insurance premium be? b) It has been observed that the consumption expenditure of people drops when they begin their retirement life. This implies that their consumption is not smooth, and proves that they are not fully insured against leaving the workforce. Is this statement true? Explain. c) A water company owns water pipes that burst often due to poor maintenance. The company can invest GHS m in the maintenance of the pipes. More maintenance means less water loss through bursts, and less compensation payments to residents due to 1 flooding of their properties. Assume that the value of lost water is maintenance reduces the amount of loss. Assume that the value of damage to…
Brandybuck Insurance Company (BIC) is deciding whether to insure the lives of those leading a quest to Moria. Based on past experience, the probability of surviving such a quest is 80.6%. If BIC charges a premium of 8,499 silver coins and would pay a death benefit of 52,297 silver coins if the insured were to die, what is the expected value of this insurance policy to BIC?
(1) On their first date, Kelly asks Mike to guess the date of her birth, not including the year. d) If Kelly asks Mike to guess her age, and Mike's guess is too high by 15 years, what is the probability that Mike and Kelly will have a second date?
Brandybuck Insurance Company (BIC) is deciding whether to insure the lives of those leading a quest to Moria. Based on past experience, the probability of surviving such a quest is 88.9%. If BIC charges a premium of 8,240 silver coins and would pay a death benefit of 56,881 silver coins if the insured were to die, what is the expected value of this insurance policy to BIC? Round to the nearest silver coin as needed. If the expected value is a loss to BIC, enter your answer as a negative number. Phil Dunphy, a real estate agent, is considering whether he should list an unusual $303,402 house for sale. If he lists it, he will need to spend $3,848 in advertising, staging, and fresh cookies. The current owner has given Phil 6 months to sell the house. If he sells it, he will receive a commission of $23,557. If he is unable to sell the house, he will lose the listing and his expenses. Phil estimates the probability of selling this house in 6 months to be 73%. What is the expected…
The graph of the discrete probability to the right represents the number of live births by a mother 49 to 53 years old who had a live birth in 2015. Complete parts (a) through (d) below. 0 1 (a) What is the probability that a randomly selected 49- to 53-year-old mother who had a live birth in 2015 has had her fourth live birth in that year? (Type an integer or a decimal.) (b) What is the probability that a randomly selected 49- to 53-year-old mother who had a live birth in 2015 has had her fourth or fifth live birth in that year? (Type an integer or a decimal.) (c) What is the probability that a randomly selected 49- to 53-year-old mother who had a live birth in 2015 has had her sixth or more live birth in that year? (Type an integer or a decimal.) Statcrunch no JL @ 1 # с $ % JI JU & 0.30 0.25 0.20 0.15 0.10 0.05- 0.00 U 165 0.112 0.094 Number of Live Births 7 R # 8 A G
Brandybuck Insurance Company (BIC) is deciding whether to insure the lives of those leading a quest to Moria. Based on past experience, the probability of surviving such a quest is 92.2%. If BIC charges a premium of 7,941 silver coins and would pay a death benefit of 42,081 silver coins if the insured were to die, what is the expected value of this insurance policy to BIC? Round to the nearest silver coin as needed. If the expected value is a loss to BIC, enter your answer as a negative number.
2. If an insurance company issues a $200,000 five-year policy on a man whose probability of living for another five years is .994, what is the minimum that the expected cost to the company for this policy?