Binomial ProbabilityYou own your own consulting firm in Business Information Analytics. You charge $350 and hour. A small tourist resort has a weekend traffic problem and is considering whether to provide emergency services to help mitigate the congestion that results from an accident. Past records show that the probability of an accident on any given day of a four-day weekend is 0.25. The cost to the community caused by congestion from an accident is as follows: a weekend with 1 accident day costs £20,000 a weekend with 2 accident days costs £30,000 a weekend with 3 accident days costs £60,000 a weekend with 4 accident days costs £125,000 As part of its contingency planning, the resort needs to know: The probability that a weekend will have no accidents The probability that a weekend will have at least two accidents The expected cost that the community will have to bear for an average weekend period Whether or not to accept a tender from a private firm for emergency services of £20,000 for each weekend during the season.
Binomial Probability
You own your own consulting firm in Business Information Analytics. You charge $350 and hour.
A small tourist resort has a weekend traffic problem and is considering whether to provide emergency services to help mitigate the congestion that results from an accident. Past records show that the probability of an accident on any given day of a four-day weekend is 0.25. The cost to the community caused by congestion from an accident is as follows:
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a weekend with 1 accident day costs £20,000
-
a weekend with 2 accident days costs £30,000
-
a weekend with 3 accident days costs £60,000
-
a weekend with 4 accident days costs £125,000
As part of its contingency planning, the resort needs to know:
-
The probability that a weekend will have no accidents
-
The probability that a weekend will have at least two accidents
-
The expected cost that the community will have to bear for an average weekend period
-
Whether or not to accept a tender from a private firm for emergency services of £20,000 for each weekend during the season.
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