A lawyer in a court case estimates that with probability 0.25 she will win $100,000, with probability 0.4 she will win $10,000, and with probability 0.35 she will win nothing. Her client is offered a settlement of $35,000 to drop the suit. Based on the expected value, should she advise her client to accept the settlement? Yes or No

A lawyer in a court case estimates that with probability 0.25 she will win $100,000, with probability 0.4 she will win $10,000, and with probability 0.35 she will win nothing. Her client is offered a settlement of $35,000 to drop the suit. Based on the expected value, should she advise her client to accept the settlement? Yes or No

Name: A lawyer in a court case estimates that with probability 0.25 she will
Uploaded: 2024-03-20T07:06:41.000Z
Channel: Bartleby
Description: A lawyer in a court case estimates that with probability 0.25 she will win $100,000, with probability 0.4 she will win $10,000, and with probability 0.35 she will win nothing. Her client is offered a settlement of $35,000 to drop the suit. Based on t

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

Similar questions

A City of Quincy raffle offers one $800 prize, two$400 prizes and seven $100 prizes. Two thousand tickets are sold at $50each. Find the expectation (from the perspective of the player) if a personbuys one ticket.
You are a realtor trying to reach your end of year bonus. To do so, you need to sell 2 homes inthe next three days. In a typical 30-day month, you sell 15 homes. What is the probability thatyou will get your end of year bonus?
You hold an oral, or English, auction among three bidders. You estimate that each bidder has a value of either $48 or $60 for the item, and you attach probabilities to each value of 50%. The winning bidder must pay a price equal to the second highest bid. The following table lists the eight possible combinations for bidder values. Each combination is equally likely to occur. On the following table, indicate the price paid by the winning bidder. Bidder 1 Value Bidder 2 Value Bidder 3 Value Probability Price ($) ($) ($) $48 $48 $48 0.125 $48 $48 $60 0.125 $48 $60 $48 0.125 $48 $60 $60 0.125 $60 $48 $48 0.125 $60 $48 $60 0.125 $60 $60 $48 0.125 $60 $60 $60 0.125 The expected price paid is ______ . Suppose that bidders 1 and 2 collude and would be willing to bid up to a maximum of their values, but the two bidders would not be willing to bid against each other. The probabilities of the…
A competition offers prize money for players reaching the final. If aplayer reaches the final, he/she will get 1000 dollars. If the player winsthe final and get the champion, another 1000 dollars are offered. Now aplayer has already reached the semi-final, what’s the expectation of prizemoney he would have after the competition?
A investment company has an asset A that will produce a cash flow of $5.500 with prob. 0.3 and $8,800 with prob. 0.7. They also own an asset B that pays $1,550 with prob. 0.5 and $3.500 with prob. 0.50. In this case, the probability that the company will earn a total payoff of $10,350 from their portfolio of assets is and the expected value of this portfolio is_ O a15: $10.335 O 0.15: $10885 O 035: $1088S O 035, $10.33s
Charlie buys a one-year term home insurance policy for $p, that will pay $200,000 in the event of a major catastrophe and $35,000 in the event of a minor catastrophe. Charlie's home has a 0.2% chance of a major catastrophe and a 0.7% of a minor catastrophe during the one year term. What did the insurance company charge Charlie for this policy if the company expected to break even?
One option in a roulette game is to bet $20 on red. (There are 18 red compartments, 18 black compartments, and two compartments that are neither red nor black.) If the ball lands on red, you get to keep the $20 you paid to play the game and you are awarded $20. If the ball lands elsewhere, you are awarded nothing and the $20 that you bet is collected. Find the expected payback for this roulette game if you bet $20 on red. The expected payback is $ (Round to the nearest cent as needed.)
A investor estimates that, in a year’s time, a certain stock has a 30% chance to be worth $125 per share, a 45% chance to be worth $90 per share, and a 25% chance to be worth$60 per share. Determine the expectation of the price per share of the stock in a year’s time.
You purchase a brand new car for $15,000 and insure it. The policy pays 78% of the car's value if there is an issue with the engine or 30% of the car's value if there is an issue with the speaker system. The probability of an issue with the engine is 0.009, and the probability there is an issue with the speaker system is 0.02. The premium for the policy is p. Let X be the insurance company's net gain from this policy. (a) Create a probability distribution for X, using p to represent the premium on the policy. Enter the possible values of X in ascending order from left to right. P(X) (b) Compute the minimum amount the insurance company will charge for this policy. Round your answer to the nearest cent
A lottery offers one $2000 prize, one $900 prize and five $200 prizes.One thousand tickets are sold at $5 each. Find the expectation if a person buys oneticket.
You pay $3.50 to play the following game:Each of two fair dice are numbered with 3 on one side, a 2 on two sides, and a 1 on three sides.The dice are rolled once and you are returned the dollar amount corresponding to the sum on thefaces. What is the expected earning from the game?
Chandler offers you the opportunity to play his $2 game where he shuffles four cards and you must pick the correct one. What is the expected profit per person if the prize is a $1.25 coke for the game?Single line text.