The owner of a small firm has just purchased a personal computer, which she expects will serve her for the next two years. The owner has been told that she "must" buy a surge suppressor to provide protection for her new hardware against possible surges or variations in the electrical current, which have the capacity to damage the computer. The amount of damage to the computer depends on the strength of the surge. It has been estimated that there is a 1% chance of incurring 300 dollar damage, 4% chance of incurring 100 dollar damage, and 15% chance of incurring 150 dollar damage from a surge within the next two years. An inexpensive suppressor, which would provide protection for only one surge, can be purchased. How much should the owner be willing to pay if she makes decisions on the basis of expected value? Expected value =

The owner of a small firm has just purchased a personal computer, which she expects will serve her for the next two years. The owner has been told that she "must" buy a surge suppressor to provide protection for her new hardware against possible surges or variations in the electrical current, which have the capacity to damage the computer. The amount of damage to the computer depends on the strength of the surge. It has been estimated that there is a 1% chance of incurring 300 dollar damage, 4% chance of incurring 100 dollar damage, and 15% chance of incurring 150 dollar damage from a surge within the next two years. An inexpensive suppressor, which would provide protection for only one surge, can be purchased. How much should the owner be willing to pay if she makes decisions on the basis of expected value? Expected value =

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Description: The owner of a small firm has just purchased a personal computer, which she expects will serve her for the next two years. The owner has beentold that she "must" buy a surge suppressor to provide protection for her new hardware against possible surg

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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The owner of a small firm has just purchased a personal computer, which she expects will serve her for the next two years The owner has been told that she "must" buy a surge suppressor to provide protection for her new hardware against possible surges or variations in the electrical current, which have the capacity to damage the computer The amount of damage to the computer depends on the strength of the surge. It has been estimated that there is a 1% chance of incurring 350 dollar damage, 4% chance of incurring 200 dollar damage, and 10% chance of incurring 125 dollar damage from a surge within the next two years. An inexpensive suppressor, which would provide protection for only one surge, can be purchased. How much should the owner be willing to pay if she makes decisions on the basis of expected value? Expected value = Preview My Answers Submit Answers You have attempted this problem 0 times. You have unlimited attempts remaining.
In a certain year, it was estimated that 1,000,000 of the 307,000,000 residents of the United States are HIV-positive. (HIV is the virus that is believed to cause AIDS.) The Repeatedly Reactive Immunoassay (RRIA) diagnostic test correctly diagnoses the presence of AIDS/HIV 99.7% of the time and correctly diagnoses its absence 98.5% of the time. (Round your answers to four decimal places.) (a) Find the probability that a person whose test results are positive actually has HIV.(b) Find the probability that a person whose test results are negative does not have HIV.(c) Find the probability that a person whose test results are positive does not have HIV.(d) Find the probability that a person whose test results are negative actually has HIV.(e) Which of the probabilities would you be interested in if you or someone close to you tested positive? the probability that a person whose test results are positive actually has HIVthe probability that a person whose test results are negative does not…
It is known that in any given year, • 90% of the people in a city move to the suburbs; • 80% of the people in the suburbs do not move to the city. Given an initial city population of 55,000 and an initial suburb population of 77,000, what are the long-term population levels of the city and the suburb?
An analysis of first-year students at a college revealed that 1/5 of the first-year women were from homes where both parents were professionals. Of these, 3/4 were interested in the same profession as one or both of their parents. If this latter group is made up of 15 students, how many first-year women are there?
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We're interested in whether warm milk helps people go to sleep faster. We have a lab with EEG monitors that will provide us with data as to how many minutes elapse before someone falls asleep. (People spend the night in the lab.) In the first experimental condition, participants fall asleep as they usually do, without warm milk. In the second condition, participants drink 6 oz. of warm milk before going to sleep. Data for 5 participants is shown in the table below. Choose the appropriate type of t- test (independent samples or paired samples) and conduct the t-test and hypothesis test. Be sure to show all of your calculations either on your scratch work or in this text box. DO: Include the t-test value and your hypothesis test conclusion in this test box, not just in your scratch work. Minutes to Minutes to NO MILK sleep MILK sleep Participant 1 10 Participant 1 11 Participant 2 10 Participant 2 12 Participant 3 8. Participant 3 8 Participant 4 17 Participant 4 13 Participant 5 13…
A researcher is studying two types of medication that both treat hives. 23 out of the random sample of 270 adults given medication A still had hives 30 minutes after taking the medication. 15 out of another random sample of 300 adults given medication B still had hives 30 minutes after taking the medication. Test to see if the proportion of people who still had hives after medicine A is different than the proportion of people who still had hives after medicine B. Use a 0.01 level of significance. The correct hypotheses are: Ho:PA PB (claim) Ho :PA PB H A:PA < PB (claim) Но :РА На :РА # рв (claim) = PB Since the level of significance is 0.01 the critical value is 2.576 and -2.576 The test statistic is: 1.684 x (round to 3 places) The p-value is: 0.092 x (round to 3 places) The decision can be made to:
You are working on a magic pill that you think might totally eliminate pain when given to patients who are experiencing severe pain. In your work, you have discovered three ingredients that might be effective if each is used alone. Which drug therapy works best? The dependent measure is the degree of pain relief after 30 minutes of ingestion. A higher value means greater pain relief. Drug 1: 5,7,11,10,10,6,4,8 Drug 2: 13,12,12,8,7,8,12,11 Drug 3: 15,11,13,10,10,16,14,11 Placebo: 10,8,5,9,6,13,11,16 Set up your hypotheses, Report your Hypotheses in narrative and symbolic form. Use a = .01 What is the Dependent Variable? What is the Independent Variable? How many levels exist for the independent variable? Perform the appropriate ANOVA. Present your results in an ANOVA Summary Table Complete the Scheffe' Test if you find a Significant F . Compute the R2 If necessary
According to a report by the U.S. Environmental Protection Agency (EPA), containers and packaging generated about 34.6% of all municipal solid waste (MSW) in the country in a recent year. This was the largest category of such waste. The next highest group was nondurable goods, which accounted for 25.4 % of waste. This was followed by durable goods at 10.9%, yard trimmings/other at 13.4%, and food scraps at 15.7%. Suppose last year, one large midwestern U.S. city processed 303 (1,000 tons) of MSW broken down by waste type as follows: Waste Type Containers and Packaging Nondurable Goods Durable Goods Yard Trimmings/Other Food Scraps MSW (1,000 tons) 129 73 28 45 28 Determine if there is a significant difference between the distribution of municipal solid waste in this midwestern city and the distribution released by the EPA a. Specify the hypotheses. Ho HA b. Calculate the test statistic and p-value. Round intermediate calculations to AT LEAST 4 decimal places and final answers to 3…