A reactor for your plant has an initial capital cost of $100,000 and useful life of 5 years.However, there is uncertainty about the annual costs and benefits of the unit as shown in theprobability tables below:Annual CostsAnnual BenefitProbabilityAmountProbabilityAmount$6000$40000.3$50,000$25,0000.20.70.8If your company uses a MARR of 10% then calculate the equivalent uniform annual benefit(EUAB) for the outcome with the highest joint probability.

Answer: EAC annual benifit = 0.386

Answered: A reactor for your plant has an initial…

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 certain model phone costs $599. The probability of the phone breaking over the course of a year is .07. What is the maximum amount you could pay for phone replacement insurance and still have a non-negative expected value on the policy? In other words, for what price or below would it be worth it to get the insurance?
Suppose that you are offered the following "deal." You roll a six sided die. If you roll a 6, you win $17. If you roll a 3, 4 or 5, you win $5. Otherwise, you pay $6. a. Complete the PDF Table. List the X values, where X is the profit, from smallest to largest. Round to 4 decimal places where appropriate. Probability Distribution Table P(X) nd b. Find the expected profit. (Round to the nearest cent) c. Interpret the expected value. Of you play many games you will likely win on average very close to $3.33 per game. O You will win this much if you play a game. O This is the most likely amount of money you will win. or d. Based on the expected value, should you play this game? O Yes, since the expected value is positive, you would be very likely to come home with more money if you played many games. O Yes, since the expected value is 0, youvould be very likely to come very close to breaking even if you played many games, so you might as well have fun at no cost. No, since the expected…
File Edit View History O Part: 0/2 Insurance: An insurance company sells a 1-year term life insurance policy to an 81-year-old man. The man pays a premium of $3900. If he dies within 1 year, the company will pay $62,000 to his beneficiary. According to the U.S. Centers for Disease Control and Prevention, the probability that an 81-year-old man will be alive 1 year later is 0.9381. Let X be the profit made by the insurance company. Part 1 of 2 (a) Find the probability distribution. The probability distribution is x P(x) Skip Part Bookmarks Window 308 10 3900 Check Answer Help 80 www-awu.connectmath.com Q ! al K ✪ Save For Later E₂ 2 Submit Assignment © 2023 McGraw Hill LLC. All Rights Reserved. Terms of Use | Privacy Center A m olo D 1 o
WFC Average St. Dev. Min 0.65% 10.26% -28.99% Мах 27.51% 25. Based on the table above, what is the probability of losing -7% or more for WFC? A. 0.07 B. 0.14 C. 0,23 D. 0.29 %3D E. 0.31 26. If you have $200,000 invested in WFC, what is the dollar value of VaR of losing -7% or more? A. $14,000 B. $28,000 C. $46,000 D. $58,000 E. $62,000 27. Based on the table above, there is 30% chance that your losses for WFC will be greater than A. -0,30% B. 2.15% C. 4.73% D. 7% E. -14% 28. Based on the table above, there is 30% chance that your dollar losses for WFC will be greater than if you have $200,000 invested in ti? A. -S600 B. $4,300 C. -$9,460 D. -$14,000 E. S28,000
The principle of redundancy is used when system reliability is improved through redundant or backup components. Assume that a student's alarm clock has a 14.9% daily failure rate. Complete parts (a) through (d) below. a. What is the probability that the student's alarm clock will not work on the morning of an important final exam? (Round to three decimal places as needed.)
The principle of redundancy is used when system reliability is improved through redundant or backup components. Assume that a student's alarm clock has a 16.9% daily failure rate. Complete parts (a) through (d) below. a. What is the probability that the student's alarm clock will not work on the morning of an important final exam? (Round to three decimal places as needed.) Enter your answer in the answer box and then click Check Answer. Check Answer parts remaining Clear All
Calculate the six values of joint probability (5th column) and present worth PW (last column) and fill in the below table assuming a first cost of $20,000 and 12% interest rate. Annual benefits Probability Life (years) Probability Joint probability $5,000 $8,000 $10,000 $5,000 $8,000 $10,000 PW 30% 6. 66.7% 60% 66.7% 10% 66.7% 30% 33.3% 60% 33.3% 10% 33.3% O6999
Determine whether the following are valid probability models or not. Type "VALID" if it is valid, or type "INVALID" if it is not.

Recommended textbooks for you

A First Course in Probability (10th Edition)

Probability

ISBN:

9780134753119

Author:

Sheldon Ross

Publisher:

PEARSON

A First Course in Probability

Probability

ISBN:

9780321794772

Author:

Sheldon Ross

Publisher:

PEARSON

A First Course in Probability (10th Edition)

Probability

ISBN:

9780134753119

Author:

Sheldon Ross

Publisher:

PEARSON

A First Course in Probability

Probability

ISBN:

9780321794772

Author:

Sheldon Ross

Publisher:

PEARSON

SEE MORE TEXTBOOKS