expected value and variance of a participant’s net earnings

Q: Rick Miller has just opened a new bakery in Frisco, Colorado, called Morning Fresh. In performing an…

A: Given, Marginal cost or loss for each dozen doughnuts sold=$4 The estimated marginal profit=$2.75…

Q: A study was conducted to determine whether there were significant differences between medical…

A:

Q: To generate leads for new business, Gustin Investment Services offers free financial planning…

A: From the given information ,Total number of trials , n = 25 Each seminar costs Gustin = $3900the…

Q: A stock index consists of businesses in both Europe and the United States. Assume that each business…

A: Given the probability that American business makes a profit = 90% = 0.90 Given the probability that…

Q: In a system with a single capacity 1 server with Random.Exponential(0.25) minutes inter-arrival time…

A: Given a system with a single capacity 1 server with Random.Exponential(0.25) minutes inter-arrival…

Q: On any given morning, Joe eats 0, 1, or 2 eggs, with probabilities 0.2, 0.5, and 0.3, respectively,…

A:

Q: In 2016 Americans owed $1.3 trillion in student loans. The default rates of college student loans…

A: Given that  p=11.2%=0.112 Sample size n =215

Q: Terry is a typical investment advisor at BeatTheMarket.com. Each stock that Terry recommends…

A: a) Let X denotes the number of stocks recommended by Terry that will outperform the stock market…

Q: Two cards are selected at random from a box which contains five cards numbered 1, 1, 2, 2, and 3.…

A: Given: Card1: 1  Card2: 1 Card3: 2 Card4: 2 Card5: 3   Sample size = n = 2

Q: In a certain California city, projections for the next year are that there is a 20% chance that they…

A: We have to find expected value.

Q: A box contains 20 electric lamps of which 5 are defective. A man selects two lamps randomly and he…

A:

Q: ou write a code over and over, and each time there is probability p that it gets accepted,…

A:

Q: The probability that a 50-year-old man will survive a fixed length of time is 0.995. An insurance…

A:

Q: An insurance policy on an electrical device pays a benefit of $4800 if the device fails during the…

A:

Q: A lawyer considering taking a case figures that there is a 40% chance of winning the case in court…

A: The expected payoff of the case for the firm is obtained below: From the given information, there is…

Q: A white goose hunter kills 60% of the geese he kills he shoots. Calculate the probability that with…

A: Probability that a white goose hunter kills the geese(p)=0.60sample size(n)=10Let "x" be that the…

Q: In the game of​ roulette, a player can place a ​$6 bet on the number 30 and have a 138 probability…

A: Solution: Let  x is the gain to a player in a game of​ chance.  The possible values of x are -6 and…

Q: A company is trying to decide if they should make a bid on a project that would generate 4500,000 in…

A:

Q: An analyst estimates there is a probability of 18 percent that there will be a recession next year.…

A: Given,An analyst estimates there is a probability of 18 percent that there will be a recession next…

Q: Suppose a life insurance company sells a $120,000 one-year term life insurance policy to a…

A: Given P=0.999356 q=1-p     =1-0.999356     =0.000644

Q: A box containing 7 gaming monitors is sampled by a quality inspector; the box contains 4 quality…

A: For equally likely outcomes, the probability of favorable event can be given by dividing the number…

Q: In 2016 Americans owed $1.3 trillion in student loans. The default rates of college student loans…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub- parts for…

Q: At a lottery competition, a person pays 20R to participate in the competition. If he rolls two dice…

A: Expected gain = sum(p*x)

Q: A restaurant has 5 lines. Customers being dispatched to each line at a .25 probability. If customers…

A: GivenThe number of lines in restaurant or number of service  s=5The customers arrive at the…

Q: Gabrielle has purchased the 2-year extended warranty from a retailer to cover the value of hers new…

A: Given: 2-year extended warranty price=$25 cellphone price =$1400 probability that it gets damaged or…

Q: A jar contains 6 pennies, 7 nickels and 7 dimes. A child selects 2 coins at random without…

A: Given information: A jar contains: 6 pennies 7 nickels 7 dimes A child selects 2 coins at random…

Q: A customer for a home insurance policy owns a $200,000 home. The probability is 0.1% that the home…

A: A customer for a home insurance policy owns a $200,000 homeThe probability is 0.1% that the home…

Q: Events A and B are independent. Find the indicated ProbabilityP(A) = 0.02P(B) = 0.27P(A and B) =

A: Given data A and B are independent P(A) = 0.02 P(B) = 0.27 P(A and B) =P(A) x P(B) =  0.02 x 0.27…

Q: stock prices has a 0.6 probability of rising in any year. The change in the value of the index in…

A: According to the Bartleby guidelines experts solve only one question and a maximum of three sub…

Q: A company is trying to decide if they should make a bid on a project that would generate 450,000 in…

A: Given : Cost of bid development = $ 100,000 Profit generated if company wins the bid = $ 450,000…

Q: uppose 58.8% of small businesses experience cash flow problems in their first 5 years. A consultant…

A: Answer  Sample size [n] = 557 P = 58.8% =58.8/100 = 0.588  the probability that greater than 55.85%…

Q: The lifetime of a lightbulb can be modeled with an exponential random variable with an expected…

A: Here, Expected lifetime = 1000 So, λ=11000

Q: A investment company has an asset A that will produce a cash flow of $5,500 with prob. 0.3 and…

A: When the expected value of a discrete random variable is calculated, it's simply the sum of the all…

Q: A stock index consists of businesses in both Europe and the United States. Assume that each business…

A: From the given information we make a table: Number of business 840 720 probability 60%=0.60…