Econ Ball Company is deciding between developing two different high-tech balls. The first is a football with a sensor “sensor football” to determine when it crosses the goal line. The NFL and college football teams would use it to help alleviate time-consuming video reviews during goal-line situations. The second is a football “stats football” that tells you the speed, length, and spin rate of throws. The “sensor ball” for the NFL and college requires complicated technology. In addition, it needs an agreement with stadiums to put underground sensor strips on the goal line. Internal analysts predict a 50% success rate, 10 million dollars to develop, but with the potential to generate 100 million dollars in revenue. The “stats ball” has a 90% success rate, and 5 million dollars to develop, with the potential to generate 75 million dollars in revenue. At what percentage success rate would the “sensor ball” lead to the higher expected value compared to the stats ball?

Econ Ball Company is deciding between developing two different high-tech balls. The first is a football with a sensor “sensor football” to determine when it crosses the goal line. The NFL and college football teams would use it to help alleviate time-consuming video reviews during goal-line situations. The second is a football “stats football” that tells you the speed, length, and spin rate of throws. The “sensor ball” for the NFL and college requires complicated technology. In addition, it needs an agreement with stadiums to put underground sensor strips on the goal line. Internal analysts predict a 50% success rate, 10 million dollars to develop, but with the potential to generate 100 million dollars in revenue. The “stats ball” has a 90% success rate, and 5 million dollars to develop, with the potential to generate 75 million dollars in revenue. At what percentage success rate would the “sensor ball” lead to the higher expected value compared to the stats ball?

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

Please review the attachment. Does the question require me to formulate two equations to get to the answer?
Netflix made headlines in September 2011 when it split its streaming video service and its DVD by-mail service into two companies. This decision was based on projections that streaming videos will replace DVDs in the future. In this problem, you will explore these projections. Numbers below are close to the correct values, but vary to allow more practice with this idea. Total DVD and Blu-ray disc sales in 2009 were $8.72 billion. For the purposes of this problem, you will combine DVD and Blue-ray disk sales into one category of DVD sales. A study by In-Stat predicted that "physical disc sales will decline by $4.7 billion by 2014," and that "streaming, on the other hand, should grow from its current $2.1 billion to $6.3 billion over the same time period (2009–2014)."12 What is the slope, including units, of the model for DVD sales? Write a statement interpreting the meaning of the slope in the context of the problem.
A local construction company is trying to reduce costs. It found that the price of steel bars varies considerably from manufacturer to manufacturer. The table below shows the cost of one steel bar from different manufacturers. Calculate the IQR. Cost for One Steel Bar Emerson $4.31 Mannix $6.20 United $5.67 American $2.79 National $3.20 Pracox $3.57 Steelco $5.32 Cost per Steel Bar 7 6 4 3 2 1 O $2.47 O $2.53 O $4.32 O $5.36
While the mail-order DVD rental market has slowed with the advent of streaming, mail-order is still the only way to find rare movies. Raredvds.biz is considering moving into the rental business after considerable success selling DVDs. To gauge their customer service, they are considering the case of the 1980 film The Monster Club featuring Vincent Price. Raredvds.biz expects to have one copy of the DVD. Based on data collected from customers, Raredvds.biz believes that the average time between orders for the film will be about 10 days with a coefficient of variation of one. Using customer data, the company also believes that including shipping time, both ways, the DVD will on average spend seven days in service, with a coefficient of variation of one. How long does a customer wait on average before being shipped the DVD?
Several states have argued that the 65-mph speed limit has no justification and have refused to enforce it. The federal Department of Transportation (DOT) believes that the 65-mph limit saves lives. To illustrate its contention, the department regressed the number of traffic fatalities (Y) last year in a state on the state’s population (X1), the number of days of snow cover (X2), and the average speed of all cars (X3). The results are shown below. Table 10: Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .821 a .780 .613 3.258 a. Predictors: (Constant), population, days of snow, average speed Table 11: Coefficients Coefficientsa Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta 1 (Constant) 1.4 2.957 .473 .584 Population .00029 .00003 .0034 9.667 .000 Days of Snow 2.4 .62 .759 3.871 .000 Average Speed 10.3 1.1…
The research department at a manufacturing company has developed a new process that it believes will result in an improved product. Management must decide whether to go ahead and market the new product. The new product may or may not be better than the old one. If the new product is better and the company decides to market it, sales should increase by $70,000. If it is not better and they replace the old product with the new product on the market, they will lose $25,000 to competitors. If they decide not to market the new product, they will lose a total of $60,000 if it is better and just research costs of $20,000 if it is not. Complete parts (a) and (b) below. (a) Prepare a payoff matrix. □ (Type an integer or decimal for each matrix element. Do not include the $ symbol in your answer.)
Netflix made headlines in September 2011 when it split its streaming video service and its DVD by-mail service into two companies. This decision was based on projections that streaming videos will replace DVDs in the future. In this problem, you will explore these projections. Numbers below are close to the correct values, but vary to allow more practice with this idea. Total DVD and Blu-ray disc sales in 2009 were $8.72 billion. For the purposes of this problem, you will combine DVD and Blue-ray disk sales into one category of DVD sales. A study by In-Stat predicted that "physical disc sales will decline by $4.7 billion by 2014," and that "streaming, on the other hand, should grow from its current $2.1 billion to $6.3 billion over the same time period (2009–2014)." What is the slope, including units, of the model for streaming videos?
Cellulon, a manufacturer of home insulation, wants to develop guidelines for builders and consumers on how the thickness of the insulation in the attic of a home and the outdoor temperature affect natural gas consumption. In the laboratory, it varied the insulation thickness and temperature. A few of the findings are: Monthly Natural Gas Consumption (cubic feet), Thickness of Insulation (inches), Outdoor Temperature (ºF), y x1 x2 30.3 6.0 40.0 24.2 12 40 27.9 8 49 On the basis of the sample results, the regression equation is: yˆy⁢^⁢ = 56.26 − 0.66x1 − 0.59x2 How much natural gas can homeowners expect to use per month if they install 6 inches of insulation and the outdoor temperature is 40 degrees F? (Round your answer to 2 decimal places.) What effect would installing 7 inches of insulation instead of 6 have on the monthly natural gas consumption (assuming the outdoor temperature remains at 40 degrees F)? (Round your answers…
A researcher believed that the number of rental cars in service by a car rental company would have an impact on the total annual revenue for that car rental company. Five small car rental companies were surveyed, with the number of Cars in service recorded in units of 1000 (so if a car rental company had 54000 cars in service, a 54 would be recorded) and Annual Revenue measured in millions of dollars (so an Annual Revenue of $10,000,000 would be recorded as 10). The data follows: Cars (1,000s) Annual Revenue ($ millions)11.5 118 10.0 135 9.0 100 5.5 37 3.3 32 Part of the Excel-generated Simple Linear Regression output is provided below: ANOVA df SS MS F Significance F Regression 1 7891.863897 7891.863897 22.91180151 0.017339231 Residual 3 1033.336103 344.4453677 Total 4 8925.2 Coefficients Standard Error t Stat P-value Intercept -19.12490108 23.1658578…
Several states have argued that the 65-mph speed limit has no justification and have refused to enforce it. The federal Department of Transportation (DOT) believes that the 65-mph limit saves lives. To illustrate its contention, the department regressed the number of traffic fatalities (Y) last year in a state on the state’s population (X1), the number of days of snow cover (X2), and the average speed of all cars (X3). The results are shown below. Table 10: Model Summary Model R R Square Adjusted R Square Std. Error of the Estimate 1 .821 a .780 .613 3.258 a. Predictors: (Constant), population, days of snow, average speed Table 11: Coefficients Coefficientsa Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta 1 (Constant) 1.4 2.957 .473 .584 Population .00029 .00003 .0034 9.667 .000 Days of Snow 2.4 .62 .759 3.871 .000 Average Speed 10.3 1.1…