Assume that the probability of a security breach is 1 percent.The chance of your computer system being damaged duringsuch an attack is 5 percent. If the system is damaged, theaverage estimated damage will be $ 50 million. What is theexpected loss in dollars?In the above question, an insurance agent is willing to insureyour facility for an annual fee of $35,000.00. Should thecompany accept the offer based on the cost benefit analysis?

P(security breach) = 1% = 1/100 = 0.01 P(system damage by attack) = 5% = 5/100 = 0.05 Average…

Answered: Assume that the probability of a…

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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You are the warehouse manager for Discovery Kitchen Supplies. On a Sunday in May, you receive a phone call from the owner. He states that the entire building and contents were destroyed by fire. For the police report and the insurance claim, the owner has asked you to estimate the value of the lost inventory. Your records, which luckily were backed up on the hard drive of your home computer, indicate that at the time of the fire, the net sales to date were $654,300 and the purchases were $290,400. The beginning inventory on January 1 was $329,700. For the past three years, the company has operated at a gross margin of 20%. Use the gross profit method to calculate your answer. Round your answer to the nearest dollar.$
To the Internal Revenue Service (IRS), the reasonableness of total itemized deductions depends on the taxpayer's adjusted gross income. Large deductions, which include charity and medical deductions, are more reasonable for taxpayers with large adjusted gross incomes. If a taxpayer claims larger th average itemized deductions for a given level of income, the chances of an IRS audit are increased. Data (in thousands of dollars) on adjusted gross income and the average or reasonable amount of itemized deductions follow. Adjusted Gross Income ($1,000s) 22 Itemized Deductions ($1,000s) 9.6 27 9.6 32 10.1 48 11.1 65 11.5 85 120 19.7 23.5 (a) Develop a scatter diagram for these data with adjusted gross income as the independent variable. 30 25 20 15 • 10 5 Itemized Deductions ($1,000s) 0 20 40 60 80 100 120 Adjusted Gross Income ($1,000s) 140 30 25 20 15 10 5. Itemized Deductions ($1,000s) 30 25 20 15 10 • 15 • 10 5- 0 20 40 60 80 100 120 140 0 Adjusted Gross Income ($1,000s) 20 40 60 80 100…
The amount of income spent on housing is an important component of the cost of living. The total costs of housing for homeowners might include mortgage payments, property taxes, and utility costs (water, heat, electricity). An economist selected a sample of 20 homeowners in New England and then calculated these total housing costs as a percent of monthly income, 5 years ago and now. The information is reported below. Is it reasonable to conclude the percent is less now than 5 years ago? Homeowner Five Years Ago Now Homeowner Five Years Ago Now 1 17 % 10 % 11 35 % 32 % 2 20 39 12 16 32 3 29 37 13 23 21 4 43 27 14 33 12 5 36 12 15 44 40 6 43 41 16 44 42 7 45 24 17 28 22 8 19 26 18 29 19 9 49 28 19 39 35 10 49…
1. Suppose an electronics store offers an extended warranty on a cell phone that covers screenrepair and camera repair and will cost $9.99 per month. Suppose there is a 14% chance ofneeding a screen repair in the next year and an 11% chance of needing a camera repair.Suppose a screen repair will cost the store $155 and a camera repair will cost the store $79.How much annual profit does the store expect for each warranty purchased? 2. Suppose there is a probability of 4/5 that you will get an A on any given exam. Create atable giving the probability distribution for the number of A’s that you could get if you taketwo exams.
FARO Technologies, whose products include portable 3D measurement equipment, recently had 26 million shares outstanding trading at $45 a share. Suppose the company announces its intention to raise $290 million by selling new shares. How large a loss in dollar terms will existing FARO shareholders experience on the announcement date, based on studies that show losses are 30% of the size of the new issue? Note: Enter your answer in millions without a sign. What percentage of the value of FARO’s existing equity prior to the announcement is this expected loss? Note: Round your answer to 1 decimal place. At what price should FARO expect its existing shares to sell immediately after the announcement? Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
In 2014, the median salary nationwide for a high school teacher was $56,310 per year. The median annual wage for all workers was $35,540.SOURCE: United States. Department of Labor. "High School Teachers." Occupational Outlook Handbook. 17 Dec. 2015. Web. 7 March 2016. Suppose a worker makes $29,000 in wages per year. Find the percent increase in salary the worker can expect if he/she trains to be a teacher and can expect to earn a salary of $40,000. Enter your response to the nearest 0.1% %
Rainie owns a $200,000 house and has a 5% chance of experiencing a fire in any given year. Assume that only one fire per year can occur and that if a fire occurs, the house is completely destroyed. 1. Suppose that Rainie purchases a full insurance contract from Lemonade Insurance Company for an actuarially fair premium. This contract would pay all losses due to the fire. Assume that Rainie's contract is the only insurance contract Lemonade Insurance Company sold. What is the probability distribution of total losses for Lemonade Insurance Company if they sell a contract to Rainie? a. b. What is the actuarially fair premium [AFP] Lemonade Insurance Company will charge Rainie in the coming year? Show your work What is the amount of risk Lemonade Insurance Company faces if they have Rainie as their only customer? Show your work с.
Suppose a mutual fund has a portfolio of stocks that have a market value of $10.75 billion and the company has 900 million shares of stock. What is the net asset value (in dollars) of a share of the mutual fund? Round to the nearest cent. Disregard the fees that may be charged by the company.
N owns a Disability Income policy that will cover him to age 65, allhough the insurance company has the right to change the premium rate for the overall risk class to which N is assigned Which of he following types of renewability best describes this situation? A. Noncancellable B. Cancellable C. Guaranteed Renewable D. Optionally Renewable
9. Suppose an electronics store offers an extended warranty on a cell phone that covers screenrepair and camera repair and will cost $9.99 per month. Suppose there is a 14% chance ofneeding a screen repair in the next year and an 11% chance of needing a camera repair. Suppose a screen repair will cost the store $155 and a camera repair will cost the store $79. How much annual profit does the store expect for each warranty purchased?
"Heinz Plays Catch-up After Under-Filling Ketchup Containers" is the headline of an article that appeared on CNN.com.† The article stated that Heinz had agreed to put an extra 1% of ketchup into each ketchup container sold in California for a 1-year period. Suppose that you want to make sure that Heinz is in fact fulfilling its end of the agreement. You plan to take a sample of 20 oz bottles shipped to California, measure the amount of ketchup in each bottle, and then use the resulting data to estimate the mean amount of ketchup in each bottle. A small pilot study showed that the amount of ketchup in 20 oz bottles varied from 19.8 to 20.6 oz. How many bottles should be included in the sample if you want to estimate the true mean amount of ketchup to within 0.1 oz with 95% confidence? (Round your answer up to the nearest whole number.)
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