Illustration 32.The publishing company's estimate of profits and losses and theirrespective probabilities on the publication of this book during the first yerare as follows :Profit/LossProbabilityCondition500000.20If successfulIf moderate200000.30If unsuccessful-100000.50Find the expected value of the profit of the company for this book during thefirst year.

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Answered: The publishing company's estimate of…

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 time in months between the service call for an office computer follows an exponentialdistribution at a rate of 0.02 per month. What is the probability that the time until the next call:a. exceeds 60 months?b. is less than 20 months?
4. Suppose that a set of portfolio managers has a chance p = 50% of beating the market by 10% in a given year and chance 1 - p of underperforming by 10%. Performance from one year to the next is independent and uncorrelated. Returns are simple returns and compounding is ignored. (a) What is the probability that a manager will achieve a five-year track record which beats the market for at least 4 out of 5 years? (b) Suppose that unsuccessful managers get forced out of business as soon they are down overall -30%; that is, as soon as as their record contains 3 more losing years than winning years. What is the probability of failure over a five-year horizon? (c) Among those who survive, what is the expected total return?
If 2% of electric bulbs manufactured by a certain company are defective. Find the probability that in a sample of 200 bulbs; (i) less than 2 bulbs; (ii) more than 3 bulbs are defective. [e-4 = 0.0183].
The time until the graduates of a department find their first jobs after graduation follows an Exponential distribution with mean 10 months. The probability that a graduate of this department will not be able to find a job in 1.5 years is ..........
Find the probability of the indicated event if P(E) = 0.25 and P(F) = 0.35. Find P(E or F) if P(E and F)= 0.20. P(E or F) =| (Simplify your answer.)
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.
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
The time (in minutes) between telephone calls at an insurance claims office has the exponential probability distribution: f(x)=0.50e-0.50x for x ≥ 0 What is the mean time between telephone calls? What is the probability of 30 seconds or less between telephone calls? What is the probability of 1 minute or less between telephone calls? What is the probability of 5 or more minutes without a telephone call?
ony runs a cell phone kiosk in the mall and has 244 potential customers each day. He has a 7 % chance to make a sale to each customer. Use continuity correction to normally approximate the following probabilities.Round to 4 decimal places.a. The probability that he makes AT LEAST 18 sales b. The probability that he makes AT MOST 16 sales
express the event "taking atleast 16 credits" in terms of X and find its probability
In major league baseball, a no hitter is a game in which a pitcher, or pitchers, doesn't give up any hits throughout the game. No hitters occur at a rate of about three per season. Assume that the duration of time between no hitters is exponential. a. what is the probability that an entire season elapses with a single no-hitter? b. If an entire season elapses without any no hitters, what is the probabilty that there are no no hitters in the following season? c. What is the probabilty that there are more than 3 no hitters in a single season?
The chance of an IRS audit for a tax return with over $25,000 in income is about 2% per year. We are interested in the expected number of audits a person with that income has in a 16-year period. Assume each year is independent. Part (a) Part (b) List the values that X may take on. X=0, 1, 2,..., 15, 16 OX= 1, 2, 3, OX= 1, 2, 3, OX=1,2,3,... 15, 16 98, 99, 100 Part (c) Give the distribution of X X-B 0.02 □ Part (d) How many audits are expected in a 16-year period? (Round your answer to two decimal places.) 0.32 audits Part (e) Find the probability that a person is not audited at all. (Round your answer to four decimal places.) Part (1) Find the probability that a person is audited more than twice. (Round your answer to four decimal places.)

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