Mr. Kester has started an actuarial consulting firm in Des Moines and has rented a building to be used as the office of his firm. The probability that a tornado would strike his office during the upcoming year is 0.03. If a tornado strikes, the damage to his office would be uniformly distributed between $5,000 and $35,000. Assuming only one tornado may strike per year, calculate the variance of the tornado damage to Mr. Kester’s office during the upcoming year

Mr. Kester has started an actuarial consulting firm in Des Moines and has rented a building to be used as the office of his firm. The probability that a tornado would strike his office during the upcoming year is 0.03. If a tornado strikes, the damage to his office would be uniformly distributed between $5,000 and $35,000. Assuming only one tornado may strike per year, calculate the variance of the tornado damage to Mr. Kester’s office during the upcoming year

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

The life of light bulbs is distributed normally. The variance of the lifetime is 900 and the mean lifetime of a bulb is 550 hours. Find the probability of a bulb lasting for at least 583 hours. Round your answer to four decimal places
The average speeds of cars on a highway are distributed according to a normal distribution. Today, John is on his way to work. As he enters the highway, he notices a car speeding by at 150 km/hr. Ten seconds later, another car speeds by at 160 km/hr. John concludes that today, cars must be going faster for some reason. A few minutes later, John gets into a minor accident. Once again, he concludes that it was inevitable - he got into the accident because cars were driving faster today. Explain what fallacies - if any-are involved in both of John's claims. Is John justified in his conclusions?
A catering service got hired to run the bar at a wedding with 100 guests. A wedding guest drinks on average 4 pints with variance of 0.9. i. Calculate how many pints the catering service approximately has to have in stock to be 95% sure that they can serve the demand. ii. To be on the safe side the catering service decides to bring 430 pints. What is the approximate probability that those will suffice?
Assume that ﬁnal exam scores in a given course are approximately normally distributed with a mean of 75 and a standard deviation of 10 points. In a class of 200 students, how many would you expect to fail the exam (i.e., score less than 60) (note: scores can only be approximately normally distributed, because the minimum score is 0, but this should not alter the answer, given how large the mean is relative to the standard deviation).
Pregnant women are screened for a birth defect called Down syndrome. Down syndrome babies are mentally and physically challenged. Some mothers choose to abort the fetus when they are certain that their baby will be born with the syndrome. The most common screening is maternal serum screening, a blood test that looks for markers in the blood to indicate whether the birth defect may occur. The false-positive and false-negative rates vary according to the age of the mother. Mother’s Age False-Positive Rate False-Negative RateUnder 30 0.040 0.37630-34 0.082 0.29035-37 0.178 0.269Over 38 0.343 0.029 The probability that a baby has Down syndrome is primarily a function of the mother’s age. The probabilities are listed here. Age Probability of Down Syndrome25 1/130030 1/90035 1/35040 1/10045 1/2549 1/12 For each of the age 25, 30, 35, 40, 45 and 49, determine the probability of Down syndrome if the maternity serum screening produces a…
The consulting firm of Winston & Associates has been retained by an electronic component assembly company in Phoenix to design and program a computer simulation model of its operations. Winston & Associates plan to construct the model using ProModel software (see Promodel.com). This software allows the developer to program into the model probability distributions for things like machine downtime, defect rates, daily demand, and so forth. The closer the distributions specified in the computer model match those that actually occur in the assembly plant, the better the simulation model will perform. For one machine center, Winston consultants have assumed that when the center goes down for repairs, the time that it will be down will be normally distributed with an average of 30 minutes and a standard deviation equal to 10 minutes. Before finalizing the model, the consultants will collect a random sample of downtimes and test whether their downtime assumptions are valid. The…
The weights of steers in a herd are distributed normally. The variance is 40,000 and the mean steer weight is 1400lbs. Find the probability that the weight of a randomly selected steer is between 1537lbs and 1679lbs Round your answer to four decimal places.
Lieutenant Commander Data is planning to make his monthly (every 30 days) trek to Gamma Hydra City to pick up a supply of isolinear chips. The trip will take Data about two days. Before he leaves, he calls in the order to the GHC Supply Store. He uses chips at an average rate of i ve per day (seven days per week) with a standard deviation of demand of one per day. He needs a 98 percent service probability. If he currently has 35 chips in inventory, how many should he order? What is the most he will ever have to order?