consultant has been hired to redesign a company's production facility. The consultant estimates the probabilities of her potential profit as shown in the table below. What is her profit expectation? $ Profit/Loss Probability $40,000 0.05 $30,000 0.30 $20,000 0.38 $10,000 0.20 $5,000 0.07

consultant has been hired to redesign a company's production facility. The consultant estimates the probabilities of her potential profit as shown in the table below. What is her profit expectation? $ Profit/Loss Probability $40,000 0.05 $30,000 0.30 $20,000 0.38 $10,000 0.20 $5,000 0.07

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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Profit/Loss	Probability
$40,000	0.05
$30,000	0.30
$20,000	0.38
$10,000	0.20
$5,000	0.07

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shift ↑ " D Business projection: An investor is considering an investment in a start-up company. She estimates that she has probability 0.40 of a $14,000 loss, probability 0.27 of a $5900 profit, probability 0.18 of a $60,000 profit, and probability 0.15 of breaking even (a profit of $0). What is the expected value of the profit? Would you advise the investor to make the investment? 19 or H tab Part: 0/2 caps lock Part 1 of 2 esc The expected value of the profit is $ → K- fn Skip Part Check Type here to search wer. ng design. L E 1 Stay connected and entertained 2 Q A @ N H hip 2 W S # 3 X alt E "10 $ 4 с () X R s % F 5 5 V to 40 T G 6 # & Y B 99- H 7 a hp 4+ U N Save For Later © 2023 McGraw Hill LLC. All Rights Reserved. Terms of Use | Privacy Center AOKE 33 S O 8 144 ( 9 M 10 11 1 JU JKL Y O O . - 1 P : 1 + { alt [ ? 7 insert Submit Assignment Accessibility 9:22 PM 40 2/21/2023 prt sc ctri pause backspace USE YOUR SMARTPHONE FOR Reviews Videos Features Specs Support E do F 19 SCAN L…
Amount of claim (to nearest $20,000) Probability $0 0.70 $20,000 0.17 $40,000 0.06 $60,000 0.04 $80,000 0.02 $100,000 0.01 A. Calculate the expected value? B. How much should the company charge as an average premium so that it breaks even on its claim costs? C. How much should the company charge to make a profit of $50 per policy?
Suppose that you are offered the following "deal." You roll a six sided die. If you roll a 6, you win $7. If you roll a 4 or 5, you win $2. Otherwise, you pay $8.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 X P(X) b. Find the expected profit. $ (Round to the nearest cent)c. Interpret the expected value. If you play many games you will likely lose on average very close to $2.17 per game. You will win this much if you play a game. This is the most likely amount of money you will win. d. Based on the expected value, should you play this game? No, since the expected value is negative, you would be very likely to come home with less money if you played many games. Yes, since the expected value is positive, you would be very likely to come home with more money if you played many games. Yes, since the expected value is 0, you would be…
You are given the following probability distribution for the returns on Security A and Security B: Probability 0.3 0.3 0.3 0.1 Return on Security A 37% 7% 20% -15% Return on Security B 13% 19% 26% -22% Assume you invest $4,000 in Security A and $6,000 in Security B. What are the expected return and standard deviation of your portfolio?
A consultant has been hired to redesign a company's production facility. The consultant estimates the probabilities of her potential profit as shown in the table below. What is her profit expectation? Profit/Loss Probability $40,000 $30,000 $20,000 $10,000 $5,000 0.08 0.30 0.38 0.20 0.04
PRACTICE ANOTHER Recall that Benford's Law claims that numbers chosen from very large data files tend to have "1" as the first nonzero digit disproportionately often. In fact, research has shown that if you randomly draw a number from a very large data file, the probability of getting a number with "1" as the leading digit is about 0.301. Now suppose you are the auditor for a very large corporation. The revenue file contains millions of numbers in a large computer data bank. You draw a random sample of n = 225 numbers from this file and r = 85 have a first nonzero digit of 1. Let p represent the population proportion of all numbers in the computer file that have a leading digit of 1. What is the value of the sample test statistic? (Round your answer to two decimal places.) ANSWER IS NOT 2.57 Find the P-value of the test statistic. (Round your answer to four decimal places.) ANSWER IS NOT 0.0102
Suppose that you are offered the following "deal." You roll a six sided die. If you roll a 6, you win $9. If you roll a 3, 4 or 5, you win $2. Otherwise, you pay $3.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 X P(X) b. Find the expected profit. $ (Round to the nearest cent)c. Interpret the expected value. You will win this much if you play a game. If you play many games, on average, you will likely win, or lose if negative, close to this amount. This is the most likely amount of money you will win. d. Based on the expected value, should you play this game? No, this is a gambling game and it is always a bad idea to gamble. Yes, because you can win $9.00 which is greater than the $3.00 that you can lose. No, since the expected value is negative, you would be very likely to come home with less money if you played many games. Yes,…
Below is a partially complete probability model. Enter the probability for the final outcome. Outcome 3 3 3.5 6 Probability 0.35 0.2 0.15 Find the expected value of the probability model. Speak