Bundle: Modern Business Statistics with Microsoft Office Excel, Loose-Leaf Version, 6th + MindTap Business Statistics, 2 terms (12 months) Printed Access Card
6th Edition
ISBN: 9781337589383
Author: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 20.4, Problem 16E
To save on expenses, Rona and Jerry agreed to form a carpool for traveling to and from work. Rona preferred to use the somewhat longer but more consistent Queen City Avenue. Although Jerry preferred the quicker expressway, he agreed with Rona that they should take Queen City Avenue if the expressway had a traffic jam. The following payoff table provides the one-way time estimate in minutes for traveling to and from work.
| State of Nature | ||
| Expressway Open | Expressway Jammed | |
| Decision Alternative | s1 | s2 |
| Queen City Avenue, d1 | 30 | 30 |
| Expressway, d2 | 25 | 45 |
Based on their experience with traffic problems, Rona and Jerry agreed on a .15
In addition, they agreed that weather seemed to affect the traffic conditions on the expressway. Let
C = clear
O = overcast
R = rain
The following conditional probabilities apply.
| P(C | s1) 5= .8 | P(O | s1) = .2 | P(R | s1) = .0 |
| P(C | s2) = .1 | P(O | s2) = .3 | P(R | s2) = .6 |
- a. Use Bayes’ theorem for probability revision to compute the probability of each weather condition and the conditional probability of the expressway open, s1, or jammed, s2, given each weather condition.
- b. Show the decision tree for this problem.
- c. W hat is the optimal decision strategy, and what is the expected travel time?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
the month of June.
Question 3: Good Food Bakery paid $599.25 for flour after discounts of 15% and 6 % were applied to its
order. What was the list price of the flower?,
A package of 8-count AA batteries costs $6.24. A package of 20-count AA batteries costs $15.80. Which statement about the unit prices is
true?
The 8-count pack of AA batteries has a lower unit price of $0.78 per battery.
The 20-count pack of AA batteries has a lower unit price of $0.78 per battery.
O The 8-count pack of AA batteries has a lower unit price of $0.79 per battery.
The 20-count pack of AA batteries has a lower unit price of $0.79 per battery.
Please Help me ...
Note: c=7 , d=6
Chapter 20 Solutions
Bundle: Modern Business Statistics with Microsoft Office Excel, Loose-Leaf Version, 6th + MindTap Business Statistics, 2 terms (12 months) Printed Access Card
Ch. 20.2 - Prob. 1ECh. 20.2 - Prob. 2ECh. 20.2 - 3. Hudson Corporation is considering three options...Ch. 20.2 - 4. Myrtle Air Express decided to offer direct...Ch. 20.2 - 5. The distance from Potsdam to larger markets and...Ch. 20.2 - 6. Seneca Hill Winery recently purchased land for...Ch. 20.2 - 7. The Lake Placid Town Council has decided to...Ch. 20.3 - Consider a variation of the PDC decision tree...Ch. 20.3 - 9. A real estate investor has the opportunity to...Ch. 20.3 - Dante Development Corporation is considering...
Ch. 20.3 - 11. Hale’s TV Productions is considering producing...Ch. 20.3 - 12. Martin’s Service Station is considering...Ch. 20.3 - 13. Lawson’s Department Store faces a buying...Ch. 20.4 - Prob. 14ECh. 20.4 - 15. In the following profit payoff table for a...Ch. 20.4 - 16. To save on expenses, Rona and Jerry agreed to...Ch. 20.4 - 17. The Gorman Manufacturing Company must decide...Ch. 20 - Prob. 18SECh. 20 - 19. Warren Lloyd is interested in leasing a new...Ch. 20 - Hemmingway, Inc., is considering a $50 million...Ch. 20 - 21. Embassy Publishing Company received a...Ch. 20 - Case Problem Lawsuit Defense Strategy
John...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.Similar questions
- jane corporation produces model toy cars. each sells for $23.31. its variable cost per unit is $11.80. assuming it has a fixed cost of $325,733. what is the breakeven point for jane corporation?arrow_forwardSuppose your monthly salary for your first job after graduation is $5,000. And 25% of this monthly salary is taken for federal, state, and local taxes. Yourapartment rent is $800 per month which includes utilities. Other budget categories are savings, food, leisure, and clothing. Allocate the remaining monthly amount as you wish, and create a pie chart showing where your monthly budget goes.arrow_forwardI attached the question below: Please show work if possible. Thanks! The answered portions are correct.arrow_forward
- What is the cost of inventory?arrow_forwardLeslie's monthly income is $1,871.04 and has fixed expenses of $912.46. Leslie treats her roommates to salads and pizzas from Papa Antonio’s every Monday and Thursday, at a cost of $30, including delivery and tip. What percentage of her budget after fixed expenses goes toward these semiweekly gatherings on average?arrow_forwardLynn and Kim own two competing convenience stores. Both of them purchase a similar shipment of chocolate bars for $2,800.00 every month to sell at their stores. Lynn has a rate of markup of 45.00% on cost of her chocolate bars and Kim has a rate of markup of 30.00% on selling price of her chocolate bars. a. Which store sells the shipment of chocolate bars for a cheaper price? b. How much cheaper are the chocolate bars? rount to 2 dermical places.arrow_forward
- A friend who lives in Los Angeles makes frequent consultingtrips to Washington, D.C.; 50% of the time shetravels on airline #1, 30% of the time on airline #2, and the remaining 20% of the time on airline #3. For airline#1, flights are late into D.C. 30% of the time and late intoL.A. 10% of the time. For airline #2, these percentagesare 25% and 20%, whereas for airline #3 the percentagesare 40% and 25%. If we learn that on a particular trip shearrived late at exactly one of the two destinations, whatare the posterior probabilities of having flown on airlines#1, #2, and #3? Assume that the chance of a late arrival inL.A. is unaffected by what happens on the flight to D.C.[Hint: From the tip of each first-generation branch on atree diagram, draw three second-generation brancheslabeled, respectively, 0 late, 1 late, and 2 late.]arrow_forwardDetermine the net price if an oven has a list price of $1,708 and the distributor is offering discounts of 12%, 8% and 6%. question will save this response.arrow_forwardDataware is trying to determine whether to give a $10 rebate, to cut the price $6, or to have no price change on a software product. Currently, 40,000 units of the product are sold each week for $45. The variable cost of the product is $5. The most likely case appears to be that a $10 rebate will increas e sales 30%, and half of all people will claim the rebate. For the price cut, the most likely case is that sales will increase 20%. a) Build the basic model to compute the profits of the three options. b) What increase in sales from the rebate would make the r ebate and price cut equally desirable? c) Dataware does not really know the increase in sales that will result from a rebate or price cut. However, the company is sure that the rebate will increase sales by between 15% and 40% and that the price cut will incr ease sales by between 10% and 30%. Perform a sensitivity analysis that could be used to help determine Dataware ’ s course of actionarrow_forward
- Kalamazoo Blooming Nursery is a small company specializing in selling flowers. They developed a new product called Flowers of the Month in which they would send a customer a different flower arrangement every month. KBN charged $52 a month for Flowers of the Month. KBN spent $60,000 on their marketing campaign last year, including advertising, which led to $94,000 extra profit over the year. They estimate that their extra sales last year from this campaign was $80,000 on their usual (baseline}sales of $450,000. From the campaign they acquired 43 subscribers to Flowers of the Month who continued to subscribe to Flowers of the Month for an average of 4 years. What is the lift from this campaign? (Note: multiply answer by 100 to represent %) Your Answer:arrow_forwardUPVOTE IF COMPLETELY ANSWERED. NO UPVOTE IF INCOMPLETE. THANKSarrow_forwardIn preparing for the upcoming holiday season, Fresh Toy Company (FTC) designed a new doll called The Dougie that teaches children how to dance. The fixed cost to produce the doll is $100,000. The variable cost, which includes material, labor, and shipping costs, is $34 per doll. During the holiday selling season, FTC will sell the dolls for $42 each. If FTC overproduces the dolls, the excess dolls will be sold in January through a distributor who has agreed to pay FTC $10 per doll. Demand for new toys during the holiday selling season is extremely uncertain. Forecasts are for expected sales of 60,000 dolls with a standard deviation of 15,000. The normal probability distribution is assumed to be a good description of the demand. FTC has tentatively decided to produce 60,000 units (the same as average demand), but it wants to conduct an analysis regarding this production quantity before finalizing the decision. (a) Create a what-if spreadsheet model using a formula that relates the…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw Hill
Glencoe Algebra 1, Student Edition, 9780079039897...
Algebra
ISBN:9780079039897
Author:Carter
Publisher:McGraw Hill
Use of ALGEBRA in REAL LIFE; Author: Fast and Easy Maths !;https://www.youtube.com/watch?v=9_PbWFpvkDc;License: Standard YouTube License, CC-BY
Compound Interest Formula Explained, Investment, Monthly & Continuously, Word Problems, Algebra; Author: The Organic Chemistry Tutor;https://www.youtube.com/watch?v=P182Abv3fOk;License: Standard YouTube License, CC-BY
Applications of Algebra (Digit, Age, Work, Clock, Mixture and Rate Problems); Author: EngineerProf PH;https://www.youtube.com/watch?v=Y8aJ_wYCS2g;License: Standard YouTube License, CC-BY