Homework Help is Here – Start Your Trial Now!
Math
Probability
A community center provides recreation facilities for young people. The impact on the community is lower crime rates. Assume there are two states of crime rates – low (L) and high (H). Observed crime rates over time show that if the crime rate is low in any month, the probability of having a low rate the following month is 0.5. The probability of having a high-rate month following a low-rate month is 0.5. If the rate is high in a month, the probability of a high rate the following month is 0.9, and thus the probability of a low rate is 0.1. These probabilities apply if the community center does not advertise. This is the do-nothing policy. (Policy n). These conditional probabilities are shown in Figure 1. However, if the center advertises its recreation programs, (policy a) the conditional probabilities change to those shown in Figure 2. The community center can change its policy at the beginning of each month. The high crime month costs 20 more than the low crime month, and advertising costs 10 per month. Month t+1 Month t+1 Policy n: L H Policy a: LH Month t: L 0.5 0.5 Month t: L 0.8 0.2 0.1 0.9 H 0.6 0.4 Fig 1. Fig 2.

A community center provides recreation facilities for young people. The impact on the community is lower crime rates. Assume there are two states of crime rates – low (L) and high (H). Observed crime rates over time show that if the crime rate is low in any month, the probability of having a low rate the following month is 0.5. The probability of having a high-rate month following a low-rate month is 0.5. If the rate is high in a month, the probability of a high rate the following month is 0.9, and thus the probability of a low rate is 0.1. These probabilities apply if the community center does not advertise. This is the do-nothing policy. (Policy n). These conditional probabilities are shown in Figure 1. However, if the center advertises its recreation programs, (policy a) the conditional probabilities change to those shown in Figure 2. The community center can change its policy at the beginning of each month. The high crime month costs 20 more than the low crime month, and advertising costs 10 per month. Month t+1 Month t+1 Policy n: L H Policy a: LH Month t: L 0.5 0.5 Month t: L 0.8 0.2 0.1 0.9 H 0.6 0.4 Fig 1. Fig 2.

A First Course in Probability (10th Edition)
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
icon
Related questions
Question

Please review the attachment. Does the question require me to formulate two equations to get to the answer? 

 

A community center provides recreation facilities for young people. The impact on the community is lower crime rates. Assume there are two states of crime rates – low (L) and high (H). Observed crime rates over time show that if the crime rate is low in any month, the probability of having a low rate the following month is 0.5. The probability of having a high-rate month following a low-rate month is 0.5. If the rate is high in a month, the probability of a high rate the following month is 0.9, and thus the probability of a low rate is 0.1. These probabilities apply if the community center does not advertise. This is the do-nothing policy. (Policy n). These conditional probabilities are shown in Figure 1. However, if the center advertises its recreation programs, (policy a) the conditional probabilities change to those shown in Figure 2. The community center can change its policy at the beginning of each month. The high crime month costs 20 more than the low crime month, and advertising costs 10 per month. Month t+1 Month t+1 Policy n: Policy a: L. H Month t: L 0.5 0.5 Month t: L 0.8 0.2 H. 0.1 0.9 H 0.6 0.4 Fig 1. Fig 2.
Transcribed Image Text:A community center provides recreation facilities for young people. The impact on the community is lower crime rates. Assume there are two states of crime rates – low (L) and high (H). Observed crime rates over time show that if the crime rate is low in any month, the probability of having a low rate the following month is 0.5. The probability of having a high-rate month following a low-rate month is 0.5. If the rate is high in a month, the probability of a high rate the following month is 0.9, and thus the probability of a low rate is 0.1. These probabilities apply if the community center does not advertise. This is the do-nothing policy. (Policy n). These conditional probabilities are shown in Figure 1. However, if the center advertises its recreation programs, (policy a) the conditional probabilities change to those shown in Figure 2. The community center can change its policy at the beginning of each month. The high crime month costs 20 more than the low crime month, and advertising costs 10 per month. Month t+1 Month t+1 Policy n: Policy a: L. H Month t: L 0.5 0.5 Month t: L 0.8 0.2 H. 0.1 0.9 H 0.6 0.4 Fig 1. Fig 2.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
Probability
ISBN:
9780134753119
Author:
Sheldon Ross
Publisher:
PEARSON
A First Course in Probability
A First Course in Probability
Probability
ISBN:
9780321794772
Author:
Sheldon Ross
Publisher:
PEARSON
SEE MORE TEXTBOOKS