For each situation below, determine (a) if the variable is discrete or continuous and (b) if the information involves certainty or risk.(1) The first cost of a new front-end loader is $34,000 or $38,000 depending on the size purchased.(2) The raises for engineers and technical staff employees will be 3%, or 5%, with half getting 3% and half getting 5%.(3) Revenue from a new product line is expected to be between $350,000 and $475,000 per year with a larger chance that it is low in the range.(4) The salvage value for an old machine will be $500 (the asking price) or $0 (it will be scrapped), depending upon who is selected by the manager to take it.(5) Profits are expected to be up by anywhere between 25% and 60% this year, with equal probability for all estimates.
For each situation below, determine (a) if the variable is discrete or continuous and (b) if the information involves certainty or risk.
(1) The first cost of a new front-end loader is $34,000 or $38,000 depending on the size purchased.
(2) The raises for engineers and technical staff employees will be 3%, or 5%, with half getting 3% and half getting 5%.
(3) Revenue from a new product line is expected to be between $350,000 and $475,000 per year with a larger chance that it is low in the range.
(4) The salvage value for an old machine will be $500 (the asking price) or $0 (it will be scrapped), depending upon who is selected by the manager to take it.
(5) Profits are expected to be up by anywhere between 25% and 60% this year, with equal probability for all estimates.
Step by step
Solved in 2 steps
