Palmer Jam Company is a small manufacturer of several different jam products. One product is an organic jam thathas no preservatives, sold to retail outlets. Susan Palmer must decide how many cases of jam to manufacture eachmonth. The probability that demand will be 6 cases is 0.05, for 7 cases it is 0.25, for 8 cases it is 0.50, and for 9cases it is 0.20. The cost of every case is $50, and the price Susan gets for each case is $100. Unfortunately, anycases not sold by the end of the month are of no value as a result of spoilage.Based on the given information, Susan's conditional profits table for jam is:DemandProduce6 cases7 cases8 cases9 cases6 casesp = 0.057 casesp = 0.258 casesp = 0.509 casesp = 0.20The number of cases that Susan should produce to achieve maximum expected value (EMV) isThe EMV of stocking this number of cases is $ (round your answer to the nearest whole number).cases.

Given: The probability that demand will be 6 cases is 0.05, for 7 cases it is 0.25, for 8 cases it…

Answered: Palmer Jam Company is a small…

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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Two chefs (Mike and Larry) cook at a diner. Mike cooks twice as many dishes as Larry. ZAGAT has noted that Larry cooks “good” 3 out of four dishes, while Mike cooks “good” four out of ten dishes. You want take your out-of-town visitor for a dinner there. What is the probability that your visitor will have good dining experience?
Charlie buys a one-year term home insurance policy for $p, that will pay $200,000 in the event of a major catastrophe and $35,000 in the event of a minor catastrophe. Charlie's home has a 0.2% chance of a major catastrophe and a 0.7% of a minor catastrophe during the one year term. What did the insurance company charge Charlie for this policy if the company expected to break even?
Your car is making a funny noise. You believe that the problem is either with the wheel or the axle, and you believe the probability is 0.3 that the wheel needs to be replaced, and 0.7 that the axle needs to be replaced. You need to decide whether to replace the wheel or the axle first. The cost of each alternative is given in the following table (if you decided to replace the wrong part first, you have to replace both of them). The Wheel is broken p = 0.3 The Axle is broken p = 0.7 Replace Wheel First Replace Axle First 600 1500 1500 900 a) Find the EV of each decision alternative. Which part should you replace first? b) What is the EVPI?
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Charles has six songs on a playlist. Each song is by a different artist. The artists are Joey McIntyre, Whitney Houston, Aaron Carter, Shakira, Shania Twain, and Phil Collins. He programs his player to play the songs in a random order, without repetition. What is the probability that the first song is by Aaron Carter and the second song is by Joey McIntyre? Write your answer as a fraction or a decimal, rounded to four decimal places. The probability that the first song is by Aaron Carter and the second song is by Joey McIntyre is .
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Becky and Carla take an advanced yoga class. Becky can hold 29% of her poses for over a minute, while Carla can hold 35% of her poses for over a minute. Suppose each yoga student is asked to hold 50 poses. Let B the proportion of poses Becky can hold for over a minute and C = the proportion of poses Carla can hold for over a minute. What is the probability that Becky's proportion of poses held for over a minute is greater than Carla's? Find the z-table here. O 0.159 O 0,259 0 0.448 O 0,741 Save and Exit Next Submit Math and rem 96 & 7 8 9. 10
John can take one of two highways, Interstate A and Interstate B, to get to work each day. The probability that there will be a traffic jam on Interstate A on a given day is 0.65, and the probability that there will be a traffic jam on Interstate B is 0.2. The probability that there will be a traffic jam on at least one of Interstate A or Interstate B is 0.8. Determine the probability that both Interstate A and B will be congested. 0.235 None in the list 0.050 0.062 0.765 Submit Answer Tries 0/3 Determine the probability that Interstate B is congested given that Interstate A is congested. 0.250 0.077 0.812 0.062 None in the list Submit Answer Tries 0/3 Determine the probability that there is a traffic jam on Interstate A given that at least one of the Interstates has a traffic jam. 0.062 None in the list 0.250 0.812 0.077
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