To determine Find the expected profit for the software company. Explanation Calculation: It is given that a software company can get only one contract among two. For the larger contract, the company anticipates $50,000 as profit. For the smaller contract, the company anticipates $20,000 as profit. The probability of getting larger contract is 0.30. The probability of getting smaller contract is 0.60. The contracts will be awarded independently. Let X be the event of expected profit. The all possible outcomes are, The company will get large contract that is profit is $50,000. The company will get small contract that is profit is $20,000. The company will get both contracts that is profit is $70,000. The company will not get any contract that is profit is $0. Hence, the possible outcomes of X are 50,000, 20,000, 70,000, 0. The probabilities are calculated below: The probability of getting larger contract is 0.3. The probability of getting smaller contract is 0.60. The contracts will be awarded independently. Hence, the probability of getting both contracts is 0.6 × 0.3 = 0.18 . Let A be the large contract and B be the small contract. Hence, P ( A ) = 0.3 P ( B ) = 0.6 P ( A ∩ B ) = 0.18 The probability of getting only large contract, P ( getting only large contract ) = P ( A ) − P ( A ∩ B ) = 0.3 − 0.18 = 0.12 The probability of getting only small contract, P ( getting only small contract ) = P ( B ) − P ( A ∩ B ) = 0.6 − 0.18 = 0.42 Thus, P ( X = 50 , 000 ) = P ( getting only large contract ) = 0.12 P ( X = 20 , 000 ) = P ( getting only small contract ) = 0.42 P ( X = 70 , 000 ) = P ( getting both contracts ) = P ( getting large contracts ) × P ( getting small contracts ) = 0

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Chapter 14, Problem 21E

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Find the expected profit for the software company.

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Chapter 14, Problem 20E

Chapter 14, Problem 22E

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Intro STATS, Books a la Carte Plus New Mystatlab with Pearson Etext -- Access Card Package

Ch. 14.1 - Prob. 1JC Ch. 14.3 - Prob. 2JC Ch. 14.6 - Prob. 3JC Ch. 14.6 - Prob. 4JC Ch. 14.6 - Prob. 5JC Ch. 14 - Prob. 1E Ch. 14 - Prob. 2E Ch. 14 - Prob. 3E Ch. 14 - Prob. 4E Ch. 14 - Prob. 5E

Ch. 14 - Prob. 6E Ch. 14 - Prob. 7E Ch. 14 - Prob. 8E Ch. 14 - Prob. 9E Ch. 14 - Prob. 10E Ch. 14 - Prob. 11E Ch. 14 - Prob. 12E Ch. 14 - Prob. 13E Ch. 14 - Prob. 14E Ch. 14 - Prob. 15E Ch. 14 - Prob. 16E Ch. 14 - Prob. 17E Ch. 14 - Prob. 18E Ch. 14 - Prob. 19E Ch. 14 - Prob. 20E Ch. 14 - 21. Software A small software company bids on two...Ch. 14 - Prob. 22E Ch. 14 - Prob. 23E Ch. 14 - Prob. 24E Ch. 14 - 25. Pick another card Find the standard deviation...Ch. 14 - Prob. 26E Ch. 14 - Prob. 27E Ch. 14 - Prob. 28E Ch. 14 - Prob. 29E Ch. 14 - Prob. 30E Ch. 14 - 31. Defects A consumer organization inspecting new...Ch. 14 - Prob. 32E Ch. 14 - Prob. 33E Ch. 14 - Prob. 34E Ch. 14 - Prob. 35E Ch. 14 - Prob. 36E Ch. 14 - Prob. 37E Ch. 14 - Prob. 38E Ch. 14 - Prob. 39E Ch. 14 - Prob. 40E Ch. 14 - Prob. 41E Ch. 14 - Prob. 42E Ch. 14 - Prob. 43E Ch. 14 - Prob. 44E Ch. 14 - Prob. 45E Ch. 14 - Prob. 46E Ch. 14 - Prob. 47E Ch. 14 - Prob. 48E Ch. 14 - Prob. 49E Ch. 14 - Prob. 51E Ch. 14 - Prob. 52E Ch. 14 - Prob. 53E Ch. 14 - Prob. 54E Ch. 14 - 55. Medley In the 4 × 100 medley relay event, four...Ch. 14 - Prob. 56E Ch. 14 - Prob. 57E Ch. 14 - Prob. 58E Ch. 14 - Prob. 59E Ch. 14 - 60. Weightlifting The Atlas BodyBuilding Company...

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