Suppose that a one-year project that requiresan initial investment of $5 million has a 65%chance of generating $12 million income, a5% chance of generating $7 million income, a10% chance of generating $3 million incomeand a 20% chance of generating nothing.Illustrate the cumulative probabilitydistribution for this project's gains and losses[Feel free to draw the distribution by handand paste a picture of it].

Let x be the amount that we win. The probability distribution of this project is given by,…

Answered: Suppose that a one-year project that…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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A study of automobile accidents produced the following data: Proportion of all vehicles Probability of involvement in an accident Model year 2014 0.16 0.05 2013 0.18 0.02 2012 0.20 0.03 Other 0.46 0.04 An automobile from one of the model years 2014, 2013, and 2012 was involved in an accident. Calculate the probability that the model year of this automobile is 2013 (round to the nearest tenth).
If a 60 year-old buys a $1000 life insurance policy at a cost of $70 and has a probability of 0.921 of living to age 61, find the expectation of the policy until the person reaches 61. Round your answer to the nearest cent
Records kept by the National Ski Patrol and the National Safety Council show that, over a period of 14 years, 52.25 million people visited the slopes annually, with an average of 34 deaths each year. Assuming these figures are current, what is the probability that a skier will die in a skiing accident in a given year? (Round your answer to eight decimal places.)
The graph summarizes statistics regarding distracted drivers below the age of 40 who were involved in fatal crashes. Assume that a driver is selected at random from the 2,888 tallied. If the accident was not related to cell phone use, what is the probability that the driver was between the ages of 20 and 29.
Use the line graph in Figure to determine the percentage of marriages ending in divorce after 15 years when the wife is under 18 at the time of marriage.
The reported cancer rates for men ages 65 and older is 23%. Assume this estimate is the true population proportion of men ages 65 and older who have been diagnosed with some form of cancer. A SRS of 25 men ages 65 and older is taken. Calculate the probability that proportion of men ages 65 and older who have been diagnosed with some form of cancer is more than 0.30. (The answer has to be either A or B) A. 0.2033 B. 0.2236
The figure below shows survival probabilities from all-cause mortality over 20 years in participants over 50 years of age who have normal glucose, glucose intolerance, and Type II diabetes mellitus. Estimate the 5-year survival probability for Type II diabetes. a. approximately 10% b. approximately 60% c. approximately 76% d. approximately 84%
Suppose a person is looking for a one-year life insurance policy. They decide on a $232994 policy. This policy costs $291 per year. Suppose the probability the person dies in the year is 0.0006. Find the expected value of the policy for the insurance company. Give your answer as a decimal to at least two decimal places.
On average, TV crash after 17,000 hours of continuous use. Although the time for the TV to crash is random, researchers have found that the duration until the computer crashes follows an exponential probability distribution. a. What is the probability that the TV will fail with a usage time of less than 17,000 hours?b. What is the probability that the TV will crash with a usage time of more than 17,000 hours?c. What is the probability that no TV will fail after more than 17,000 hours of use?d. What do you think about the results of points b and c above! What is the difference?
In a certain study, the chance of encountering a car crash on the road is stated as 20%. Express that as a probability (which means it should be written as a decimal or a reduced fraction.)
Suppose that the life-time of a certain printer follows an exponential distribution with mean 2 years. The manufacture of this printer offers 100% refund if the printer fails during the first year and 50% if it fails during the second year and none afterward. a. Evaluate the probability of full refund. A. 0.05 B. 0.24 C. 0.39 D. 0.47 E. 0.52 b. Assume that each printer costs $100.00. Determine the expected refund for each sold printer. A. 46 B. 51 C. 54 D. 61 E. 66
An insurance company will insure a $75,000 automobile for its full value against theft by apolicy with a premium of $1,500 per year. Suppose that the probability that the automobile willbe stolen is 0.0075.a. Construct the probability distribution.b. Calculate the insurance company's expected net profit for this policy.

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