18) The probability of heavy traffic on a provincial highway is 20%, while the probabilities of low and medium trafficare 50% and 30% respectively. It was estimated that annual maintenance costs of the highway are $20 000 in thecase of low traffic, $30 000 in the case of medium traffic and $100 000 in the case of heavy traffic. Calculate theexpected value of the annual maintenance costs.

18) Let X be the annual maintenance cost. The annual maintenance costs of the highway are $20,000 in…

Answered: 18) The probability of heavy traffic on…

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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Organizers of an outdoor summer concert in Toronto are concerned about the weather conditions on the day of the concert. They will make a profit of $33,000 on a clear day and $15,000 on a cloudy day. They will make a loss of $7,000 if it rains. The weather channel has predicted a 52% chance of rain on the day of the concert. Calculate the expected profit from the concert if the likelihood is 11% that it will be sunny and 37% that it will be cloudy.
The principle of redundancy is used when system reliability is improved through redundant or backup components. Assume that a student's alarm clock has a 16.5% daily failure rate. a. What is the probability that the student's alarm clock will not work on the morning of an important final exam? (Round to three decimal places as needed.) b. If the student has two such alarm clocks, what is the probability that they both fail on the morning of an important final exam? (Round to five decimal places as needed.) c. What is the probability of not being awakened if the student uses three independent alarm clocks? (Round to five decimal places as needed.)
The proprietor of Midland Construction Company has to decide between two projects. He estimates that the first project will yield a profit of $180,000 with a probability of 0.7 or a profit of $130,000 with a probability of 0.3; the second project will yield a profit of $220,000 with a probability of 0.7 or a profit of $80,000 with a probability of 0.3.Find the expected profit for each project. first project $ second project $
Oxnard petri Ltd is buying hurricane insurance for it's off-coast drilling platform. During the next five years, the probability of total loss of only the above-water superstructure ($250 million) is .25, the probability of total loss of the facility ($950 million) is.25, and the probability of no loss is.50. Find the expected loss.( Input the amount as a positive value.) Expected Loss is what?
The proprietor of Midland Construction Company has to decide between two projects. He estimates that the first project will yield a profit of $160,000 with a probability of 0.7 or a profit of $120,000 with a probability of 0.3; the second project will yield a profit of $220,000 with a probability of 0.6 or a profit of $70,000 with a probability of 0.4.Find the expected profit for each project. first project $ second project $ Which project should the proprietor choose if he wants to maximize his expected profit? first project second project
Suppose an oil company is thinking of buying some land for $10,000,000. There is a 60%60% chance of economic growth and a 40%40% chance of recession. The probability of discovering oil is 44%44% when there is economic growth and 32%32% when there is a recession. If there is economic growth and the oil company discovers oil, the value of the land will triple. If they do not discover oil, the value of the land will decrease by 10%.10%. If there is a recession and the company discovers oil, the value of the land will increase by 50%.50%. If they do not discover oil, the land will decrease in value by 75%.75%. What is the expected value of the investment? Give your answer to the nearest dollar. Avoid rounding within calculations. $$ Select the correct interpretation of the expected value. The expected value represents what the actual investment value will be for this land purchase of $10,000,000. The company should make the investment because the expected value…
Suppose the amount of gasoline sold daily at a service station is uniformly distributed with a minimum of 1571 gallons and a maximum of 8154 gallons. What is the probability that daily sales will fall between 1951 gallons and 4845 gallons?
In a certain year, the probability that a stock was in the Information Technology sector was 0.1353. The probability that the stock had a dividend yield of 2.00% or higher given that it was in the Information Technology sector was 0.2988. The probability that a stock had a dividend yield of 2.00% or higher given that it was not in the Information Technology sector was 0.4469. Find the probability that the stock was in the Information Technology sector given that it had a dividend yield of 2.00% or higher. Let F be the event that a stock was in the Information Technology sector and E be the event that a stock had a dividend yield of 2.00% or higher. P(F)= and P P (F') =
An insurance company sells a one year term life insurance policy to an 80 year old woman. The woman pays a premium of $1000. If she dies within one year, the company will pay $18,500 to her beneficiary. According to the company's statistics department, the probability that an 80 year old woman will be alibve one year later is 0.9581. Find the expected value of the insurance company's profit.
A company offers guided tours of remote areas of the world. Each tour consists of 20 people. The probability of selling a ticket for any given spot on the tour is 0.86. The costs to the company are approximately the same regardless of the number of people that show up. To offset the risk associated with a tour not filling up, the company purchases a specialized insurance policy. The policy pays 100 for each ticket that is left unsold, up to a maximum of 400. Let P be the amount that the insurance policy pays to the company for a specific tour. Calculate E[P] to the nearest dollar. O 251 O244 O 259 O 267 275
An insurance company estimates the probability of an earthquake in the next year to be 0.0013. The average damage done by an earthquake is estimated to be $60,000. If the company offers earthquake insurance for $100, what is their expected value of the policy?
An insurance policy on an electrical device pays a benefit of $2400 if the device fails during the first year. The amount of the benefit decreases by $800 each successive year until it reaches 0 . If the device has not failed by the beginning of any given year, the probability of failure during that year is 0.29.Find the expected benefit under this policy.

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