A forest consists of two types of trees: those that are 0–5 ft and those that are taller than 5 ft. Each year, 40% of all 0–5-ft tall trees die, 10% are sold for $20 each, 30% stay between 0 and 5 ft, and 20% grow to be more than 5 ft. Each year, 50%of all trees taller than 5 ft are sold for $50, 20% are sold for $30, and 30% remain in the forest.a What is the probability that a 0–5-ft tall tree will die before being sold?b If a tree (less than 5 ft) is planted, what is the expected revenue earned from that tree?
A forest consists of two types of trees: those that are 0–5 ft and those that are taller than 5 ft. Each year, 40% of all 0–5-ft tall trees die, 10% are sold for $20 each, 30% stay between 0 and 5 ft, and 20% grow to be more than 5 ft. Each year, 50%of all trees taller than 5 ft are sold for $50, 20% are sold for $30, and 30% remain in the forest.a What is the probability that a 0–5-ft tall tree will die before being sold?b If a tree (less than 5 ft) is planted, what is the expected revenue earned from that tree?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A forest consists of two types of trees: those that are 0–5 ft and those that are taller than 5 ft. Each year, 40% of all 0–5-
ft tall trees die, 10% are sold for $20 each, 30% stay between 0 and 5 ft, and 20% grow to be more than 5 ft. Each year, 50%
of all trees taller than 5 ft are sold for $50, 20% are sold for $30, and 30% remain in the forest.
a What is the probability that a 0–5-ft tall tree will die before being sold?
b If a tree (less than 5 ft) is planted, what is the expected revenue earned from that tree?
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