NW 3.88 ERRORS IN ESTIMATING JOB COSTS. Aconstruction company employs three sales engineers. Engineers1, 2, and 3 estimate the costs of 30%, 20%, and 50%,respectively, of all jobs bid by the company. For i = 1, 2, 3,define E, to be the event that a job is estimated by engineer i.The following probabilities describe the rates at which theengineers make serious errors in estimating costs:P(error E₁) = .01, P(error|E₂) = .03, andP(error|E₂) = .02a. If a particular bid results in a serious error in estimatingjob cost, what is the probability that the error was madeby engineer 17b. If a particular bid results in a serious error in estimatingjob cost, what is the probability that the error was madeby engineer 27c. If a particular bid results in a serious error in estimatingjob cost, what is the probability that the error was madeby engineer 3?d. Based on the probabilities, parts a-c, which engineer ismost likely responsible for making the serious error?

It is given that P( E1 ) = 30% = 0.30, P( error/E1 ) = 0.01 P( E2 ) = 20% = 0.20, P( error/E2 )…

Answered: a. If a particular bid results in a…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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2)
1. ABC inc. stock is currently selling for $30, one year from today the stock price can either increase by 20% or decrease by 15%. The probability of an increase in the stock price is equal to 0.3. The one-year risk-free rate is 5% What is the value of a European put that expires in one year with an exercise price of $24. 2. Graphically, show the value and the profit and loss of the following butterfly position: Long in a call with an exercise price of $30, short in 2 calls with an exercise price of $45, and long in a call with an exercise price of 60. All calls are written on the same stock and have the same maturity. 3. "Early exercise of an American option on a stock that does not pay any dividend is not optimal regardless of whether the option is a Call or a Put". True, False, or Uncertain. Explain.
4. If a randomly chosen athlete tests negative, what’s the probability that the student took a banned substance? Explain why it makes sense for the drug-testing process to be designed so that this probability is less than the one you found in Question 3.5. The district decides to immediately retest any athlete who tests positive. Assume that the results of an athlete’s two tests are independent. Find the probability that a student who gets a positive result on both tests actually took a banned substance. Based on your answer, do you think that an athlete who tests positive twice should be suspended from athletic competition for a year? Why or why not?
Suppose a math class contains 37 students. There are 19 females (six of whom speak Spanish) and 18 males (five of whom speak Spanish). Give all answers as decimals to at least two decimal places.1. What is the probability that a randomly selected student speaks Spanish, given that the student is female? 2. What is the probability that a randomly selected student does not speak Spanish, given that the student is male? 3. What percent of Spanish speaking students are male? 4. If someone does not speak Spanish what is the probability they are female?
Suppose that 30 percent of an adult population have an infectious disease and 40 percent have achronic disease. Assume that having an infectious disease is independent from having a chronicdisease. For each of the questions below perform the calculation using appropriate statisticalnotation.a. What is the probability that a person selected at random will have both diseases?b. What is the probability of having the infectious disease for people with the chronic disease?c. What is the probability of having the infectious disease for people without the chronic disease?d. What is the probability of not having the infectious disease for people with the chronicdisease?
Suppose a company charges an annual premium of $475 for a fire insurance policy. in case of a fire claim, the company will pay out an average of $100,000. Based on acturial studies, it determines that the probability of a fire claim in a year is about 0.004. 1) what is the expected annual profit of a fire insurance policy for the company? 2) What annual profit can the company expect if it issues 1000 policies?

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