Your company has signed a contract with a good customer to ship the customer an order no later than 20 days from now. The contract indicates that the customer will accept the order even if it is late, but instead of paying the full price of $10,000, it will be allowed to pay 10% less, $9000, due to lateness. You estimate that it will take anywhere from 17 to 22 days to ship the order, and each of these is equally likely. You believe you are in good shape, reasoning that the expected days to ship is the average of 17 through 22, or 19.5 days. Because this is less than 20, you will get your full $10,000. What is wrong with your reasoning?

Your company has signed a contract with a good customer to ship the customer an order no later than 20 days from now. The contract indicates that the customer will accept the order even if it is late, but instead of paying the full price of $10,000, it will be allowed to pay 10% less, $9000, due to lateness. You estimate that it will take anywhere from 17 to 22 days to ship the order, and each of these is equally likely. You believe you are in good shape, reasoning that the expected days to ship is the average of 17 through 22, or 19.5 days. Because this is less than 20, you will get your full $10,000. What is wrong with your reasoning?

Name: Your company has signed a contract with a good customer to ship the c
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Description: Your company has signed a contract with a good customer to ship the customer an order nolater than 20 days from now. The contract indicates that the customer will accept the ordereven if it is late, but instead of paying the full price of $10,000, i

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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Concept explainers

Contingency Table

A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.

Binomial Distribution

Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.

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Your company has signed a contract with a good customer to ship the customer an order no
later than 20 days from now. The contract indicates that the customer will accept the order
even if it is late, but instead of paying the full price of $10,000, it will be allowed to pay 10%
less, $9000, due to lateness. You estimate that it will take anywhere from 17 to 22 days to
ship the order, and each of these is equally likely. You believe you are in good shape,
reasoning that the expected days to ship is the average of 17 through 22, or 19.5 days.
Because this is less than 20, you will get your full $10,000. What is wrong with your
reasoning?

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