A multinational corporation is considering starting a subsidiary in an Asian country. Management realizes that the success of the new subsidiary depends, in part, on the ensuing political climate in the target country. Management estimates that the probability of success (in terms of resulting revenues of the subsidiary during its first year of operation) is 0.55 if the prevailing political situation is favorable, 0.30 if the political situation is neutral, and 0.10 if the political situation during the year is unfavorable. Management further believes that the probabilities of favorable, neutral, and unfavorable political situations are 0.6, 0.2, and 0.2, respectively. What is the success probability of the new subsidiary?

A multinational corporation is considering starting a subsidiary in an Asian country. Management realizes that the success of the new subsidiary depends, in part, on the ensuing political climate in the target country. Management estimates that the probability of success (in terms of resulting revenues of the subsidiary during its first year of operation) is 0.55 if the prevailing political situation is favorable, 0.30 if the political situation is neutral, and 0.10 if the political situation during the year is unfavorable. Management further believes that the probabilities of favorable, neutral, and unfavorable political situations are 0.6, 0.2, and 0.2, respectively. What is the success probability of the new subsidiary?

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...

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B. A manufacturing company is analyzing its accident record. The accidents fall into two categories: ➤Minor-dealt with by first aider: Average cost k50 Major-hospital required. Average cost k1,000 The company has 1,000 employees, of which 180 are office staff and the rest work in the factory. The analysis shows that 10% of employees have an accident each year and 20% of accidents are major. It is assumed that an employee has more than one accident in a year. (i) Determine the expected total cost of accidents in a year. On further analysis it is discovered that a member of office staff has half the probability of having an accident relative those in the factory. (ii) Show that the probability that a given a member of office staff has an accident in a year is 0.0549. (iii) Determine the probability that a randomly chosen employee who has had an accident is office staff.
A salon owner estimates the number of clients she is expecting during the festive season to be 20% during Monday to Wednesday, 20% on Thursday and 60% over the weekend. She therefore hires additional staff to assist during the weekend to meet the client demand. She however only observes 30% during Monday to Wednesday, 20% on Thursday and 50% over the weekend in the first week of December. The salon owner is uncertain whether she should reduce the planned staff for the December festive period due the observed trend or not. She conducts a statistical test at α = 0.05 to determine if the observed trend fits the expected trend. Which of the following statements is true? A. The conclusion of the test is that she should not keep the additional staff for the weekend. B. The df for this test is 3. C. The p-value is greater than α. D. The null hypothesis is that the observed trend is different to the expected trend. E. The test statistic is χ2 = 5.33.
1. Redback Industries is a relatively small but successful and fast-growing maker of peripheral devices for cell phones including battery chargers, enhanced antennas, SIM cards, and custom carrying cases. Costco is considering purchasing Redback in order to sell the devices as private label offerings. However, Costco has set an offer price of $ 600M that depends on whether Redback’s current Annual Net Income is higher and significantly different from its 14-year average of $ 104.5M per year; Redback has indicated it is willing to sell itself to Costco at the $600M price. Use the following information to determine at the 95 % Level Of Confidence whether Costco will proceed with the purchase at the planned price of $ 600M or will lower its offering price if Redback’s current Annual Net Income is not greater than $ 104.5M per year. Redback Industries Normalized Yearly Annual Net Income over the last 14 years is $ 104.5M Redback Industries is currently reporting Yearly Annual Net…
B. A manufacturing company is analyzing its accident record. The accidents fall into two categories: ➤Minor-dealt with by first aider: Average cost k50 ➤ Major-hospital required. Average cost k1,000 The company has 1,000 employees, of which 180 are office staff and the rest work in the factory. The analysis shows that 10% of employees have an accident each year and 20% of accidents are major. It is assumed that an employee has more than one accident in a year. (i) Determine the expected total cost of accidents in a year. On further analysis it is discovered that a member of office staff | half the probability of having an accident relative those in the factory. (ii) Show that the probability that a given a member of office staff has an accident in a year is 0.0549. (iii) Determine the probability that a randomly chosen employee who has had an accident is office staff.
B. A manufacturing company is analyzing its accident record. The accidents fall into two categories: ➤Minor-dealt with by first aider: Average cost k50 Major-hospital required. Average cost k1,000 The company has 1,000 employees, of which 180 are office staff and the rest work in the factory. The analysis shows that 10% of employees have an accident each year and 20% of accidents are major. It is assumed that an employee has more than one accident in a year. (i) Determine the expected total cost of accidents in a year. On further analysis it is discovered that a member of office staff has half the probability of having an accident relative those in the factory. (ii) Show that the probability that a given a member of office staff has an accident in a year is 0.0549. (iii) Determine the probability that a randomly chosen employee who has had an accident is office staff.
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B. A manufacturing company is analyzing its accident record. The accidents fall into two categories: ➤Minor-dealt with by first aider: Average cost k50 ➤ Major-hospital required. Average cost k1,000 The company has 1,000 employees, of which 180 are office staff and the rest work in the factory. The analysis shows that 10% of employees have an accident each year and 20% of accidents are major. It is assumed that an employee has more than one accident in a year. (i) Determine the expected total cost of accidents in a year. On further analysis it is discovered that a member of office staff | half the probability of having an accident relative those in the factory. (ii) Show that the probability that a given a member of office staff has an accident in a year is 0.0549. (iii) Determine the probability that a randomly chosen employee who has had an accident is office staff.
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Overhead Door (OD) Corporation’s founder, C. G. Johnson, invented the upward-lifting garage door in 1921 and the electric garage door opener in 1926. Since then OD has been a leading supplier of commercial, industrial, and residential garage doors sold through a nationwide network of more than 450 authorized distributors. They have built a solid reputation as a premier door supplier, commanding 15 % share of the market. Suppose that customers assess door quality first in terms of the ease of operation, followed by its durability. The quality improvement team (QIT) might then assign an engineering team to determine the factors that contribute to these two main problems. Smooth operation of a garage door is a critical quality characteristic that affects both problems: If a door is too heavy, it’s difficult and unsafe to balance and operate; if it’s too light, it tends to buckle and break down frequently or may not close properly. Suppose the design engineers determine that a standard…
A gerontologist investigating various aspects of aging process wanted to see whether staying “ lean and mean, “ that is, being under normal body inbred line to one of three diets: (1) unlimited access to food, (2) 90% of the amount of food that a rat of size would normally eat, or (3) 80% of amount of food that a rat of the size would normally eat. She maintained the rats on three diets throughout their lives and recorded their lifespans (in years). Five rates in each group. Is there evidence that diet affected life span in this study? Let α= 0.01 Complete the ANOVA table . Source of variation df SS MS Fc Treatment 2 1.575 Error 12 Total 14 5.60 A) Hypothesis Test H0: H1: B) Test Statistic C) Decision Rule d) Conclusion *(please with equations and explanation) and thamnk you