ou own your own consulting firm in Business Information Analytics. You charge $350 and hour. A small tourist resort has a weekend traffic problem and is considering whether to provide emergency services to help mitigate the congestion that results from an accident. Past records show that the probability of an accident on any given day of a four-day weekend is 0.25. The cost to the community caused by congestion from an accident is as follows: a weekend with 1 accident day costs £20,000 a weekend with 2 accident days costs £30,000 a weekend with 3 accident days costs £60,000 • a weekend with 4 accident days costs £125,000 As part of its contingency planning, the resort needs to know: The probability that a weekend will have no accidents The probability that a weekend will have at least two accidents The expected cost that the community will have to bear for an average weekend period Whether or not to accept a tender from a private firm for emergency services of £20,000 for each weekend during the season.

ou own your own consulting firm in Business Information Analytics. You charge $350 and hour. A small tourist resort has a weekend traffic problem and is considering whether to provide emergency services to help mitigate the congestion that results from an accident. Past records show that the probability of an accident on any given day of a four-day weekend is 0.25. The cost to the community caused by congestion from an accident is as follows: a weekend with 1 accident day costs £20,000 a weekend with 2 accident days costs £30,000 a weekend with 3 accident days costs £60,000 • a weekend with 4 accident days costs £125,000 As part of its contingency planning, the resort needs to know: The probability that a weekend will have no accidents The probability that a weekend will have at least two accidents The expected cost that the community will have to bear for an average weekend period Whether or not to accept a tender from a private firm for emergency services of £20,000 for each weekend during the season.

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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Question

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You own your own consulting firm in Business Information Analytics. You charge $350 and hour.

A small tourist resort has a weekend traffic problem and is considering whether to provide emergency services to help mitigate the congestion that results from an accident. Past records show that the probability of an accident on any given day of a four-day weekend is 0.25. The cost to the community caused by congestion from an accident is as follows:

a weekend with 1 accident day costs £20,000
a weekend with 2 accident days costs £30,000
a weekend with 3 accident days costs £60,000

• a weekend with 4 accident days costs £125,000

As part of its contingency planning, the resort needs to know:

The probability that a weekend will have no accidents
The probability that a weekend will have at least two accidents

The expected cost that the community will have to bear for an average weekend period
Whether or not to accept a tender from a private firm for emergency services of £20,000 for each

weekend during the season.

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