Rick Miller has just opened a new bakery in Frisco, Colorado, called Morning Fresh. In performing aneconomic analysis, Rick has determined that the marginal cost or loss for each dozen doughnuts sold is$4. The marginal profit is estimated to be $2.75 per dozen doughnuts. At this time, Rick is consideringstocking 10, 15, 20, 25 or 30 dozen doughnuts. The probability of selling 10 dozen doughnuts is 10%. Thechance of selling 15 Dozen doughnuts is 20%. There is a 30% chance that Morning Fresh will sell either20 or 25 dozen doughnuts. Finally, there is a 10% chance of selling 30 dozen doughnuts, which isconsidered by Rick to be the most that Morning Fresh would be able to accommodate. What is yourrecommendation to Rick ?

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

Answered: Rick Miller has just opened a new…

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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Suppose a charitable organization decides to raise money by raffling a trip worth $500. If 3,000 tickets are sold at $1.00 each, find the expected net winnings for a person who buys 1 ticket.
The table below gives data on three movies. Gross earnings is the amount of money the movie brings in. Compare the net earnings (money made after expenses) for the three movies. Which provided the best return on investment? Release Date 10/29/2004 12/19/1997 $200,000,000 | Jurassic Park | 06/11/1993 | $63,000,000 Movie Saw Titanic Budget $1,200,000 Gross Earnings $103,096,345 $1,842,879,955 $923,863,984
According to one study, the average monthly cell phone bill in a certain country is $70 (up 31% since 2009). If an 18-year old student with an average bill gives up his cell phone and each month invests the $70 he would have spent on his phone bill in a savings plan that averages a 4% annual return, how much will he have saved by the time he is 70? He will have saved $by the time heis 70. (Round to the nearest cent as needed.)
Suppose you are producing an outdoor festival. You estimate that you will make $100000 if it does not rain and make $50000 if it does rain. The weather bureau predicts that the chance of rain is 35% for the day of the concert. What are your expected earnings for the festival?
Shenise is a star player for her women's basketball team. She has injured her ankle, and it is doubtful that she will be able to play in an upcoming game. If Shenise can play, the coach estimates that the team will score 91 points. If Shenise is not able to play, the coach estimates that they will score 70 points. The team doctor estimates that there is a 70% chance Shenise will play. Determine the number of points the team can expect to score.
Samantha took an exam in her statistics class and received 90 out of 100. Samantha thought that was a good score, but she wanted to know how high her score was in relation to the rest of the class. Her professor said her Z-score was -0.29. How should Samantha interpret her Z-score? a. Samantha’s score is 0.29 points above the class mean.b. Samantha’s score is 29% above than the class mean.c. Samantha’s score is 0.29 standard deviations above the class mean.d. Samantha’s score is 0.29 standard deviations below the class mean.
In 2000, the median home price in a certain city was about $300,000, and from 2000 to 2006, home prices in this city rose at an average rate of about 10.2% per year. If prices had continued to rise at that rate, what would the median home price have been in 2018? Compare to the actual median price of about $400,000 in 2018.
The percentage of employees who cease their employment during a year is referred to as employee turnover, and it is a serious issue for businesses. The following table shows the cost, in millions of dollars, to a certain company for a given employee turnover percentage in a year.
Health insurers are beginning to offer telemedicine services online that replace the common office visit. Kean healthcare provides a video service that allows subscribers to connect with a physician online and receive prescribed treatments. Kean healthcare claims that users of its LiveHealth Online service saved a significant amount of money on a typical visit. The data shown below ($), for a sample of 5 online doctor visits, are consistent with the savings per visit reported by Kean Healthcare. 92 105 56 76 96 Assuming the population is roughly symmetric construct a 90% confidence interval for the mean savings for a televisit to the doctor as opposed to an office visit.
According to a high-profile realtor, houses in the sleepy town of Sun Beach have shown higher appreciation over the past three years than have houses in the bustling town of North Arden. To test the realtor's claim, an economist has found twelve recently sold homes in Sun Beach and twelve recently sold homes in North Arden that were owned for exactly three years. The following table gives the appreciation (expressed as a percentage increase) for each of the twenty- four houses. Appreciation rates in percent Sun Beach 12.5, 12.2, 10.4, 12.9, 6.5, 15.0, 10.1, 10.6, 12.1, 10.8, 10.4, 9.1 North Arden 9.2, 10.7, 9.7, 7.8, 9.7, 12.1, 9.4, 6.1, 7.8, 9.3, 4.6, 11.0 Send data to calculator v Assume that the two populations of appreciation rates are normally distributed and that the population variances are equal. Can we conclude, at the 0.05 level of significance, that houses in Sun Beach have higher appreciation over the past three years than houses in North Arden? Perform a one-tailed test.…
Arbor Systems and Gencore stocks both have a volatility of 44%. Compute the volatility of a portfolio with 50% invested in each stock if the correlation between the stocks is 0.00. If the correlation is 0.00, the volatility of the portfolio is%. (Round to one decimal place.)

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