Mathematical Applications for the Management, Life, and Social Sciences
11th Edition
ISBN: 9781305108042
Author: Ronald J. Harshbarger, James J. Reynolds
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Videos
Question
Chapter 7.7, Problem 12E
To determine
To calculate: The second probability vector if the transition matrix is
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Draw the transition probability graph and construct the transition probability matrix of the
following problems.
Pliskin and Tell (1981). Patients suffering from kidney failure can either get a transplant or
undergo periodic dialysis. During any 1 year, 30% undergo cadaveric transplants, and 10%
receive living-donor kidneys. In the year following a transplant, 30% of those who undergo the
cadaveric transplants and 15% of living-donor recipients go back to dialysis. Death percentages
among the two groups are 20% and 10%, respectively. Of those in the dialysis pool, 10% die,
and of those who survive more than 1 year after a transplant, 5% die and 5% go back to dialysis.
c. The market share of two companies A and B is 30% and 70% in the current time period. The
information obtained in terms of the customer loss and retention is given by the matrix P.
[0.3 0.2]
P =
Lo.7 0.8]
i.Determine the transition probability matrix in the 1st and 2nd month.
ii.What is the steady state of the two companies?
In a certain California city, projections for the next year are that there is a 20% chance that electronics jobs will increase by 200, a 50% chance that they will increase by 300, and a 30% chance they will decrease by 800. What is the expected change in the number of electronics jobs in that city in the next year?
Chapter 7 Solutions
Mathematical Applications for the Management, Life, and Social Sciences
Ch. 7.1 - CHECKPOINT
1. If a coin is drawn from a box...Ch. 7.1 - CHECKPOINT
2. A ball will be drawn from a bag...Ch. 7.1 - CHECKPOINT
3. A coin is tossed, and a die is...Ch. 7.1 - 1. One ball is drawn at random from a bag...Ch. 7.1 - 2. One ball is drawn at random from a bag...Ch. 7.1 - 3. If you draw one card at random from a deck of...Ch. 7.1 - Prob. 4ECh. 7.1 - Prob. 5ECh. 7.1 - 6. A die is rolled. What is the probability...Ch. 7.1 - 7. An urn contains three red balls numbered 1, 2,...
Ch. 7.1 - 8. An urn contains three red balls numbered 1, 2,...Ch. 7.1 - 9. From a deck of 52 ordinary playing cards, one...Ch. 7.1 - 10. From a deck of 52 ordinary playing cards, one...Ch. 7.1 - 11. Suppose a fair coin is tossed two times....Ch. 7.1 - Prob. 12ECh. 7.1 - 13. Use Table 7.1 to determine the following...Ch. 7.1 - 14. (a) When a pair of distinguishable dice is...Ch. 7.1 - Prob. 15ECh. 7.1 - Prob. 16ECh. 7.1 - 17. Suppose a die is tossed 1200 times and a 6...Ch. 7.1 - 18. Suppose that a coin is tossed 3000 times and...Ch. 7.1 - Prob. 19ECh. 7.1 - Prob. 20ECh. 7.1 - 21. If the odds that a particular horse will win a...Ch. 7.1 - 22. If the odds that an event E will not occur are...Ch. 7.1 - Prob. 23ECh. 7.1 - Prob. 24ECh. 7.1 - 25. Car maintenance A car rental firm has 425...Ch. 7.1 - Prob. 26ECh. 7.1 - 27. Voting The table gives the average number of...Ch. 7.1 - Prob. 28ECh. 7.1 - 29. Sales promotion In a sales promotion, a...Ch. 7.1 - 30. Management A dry cleaning firm has 12...Ch. 7.1 - Prob. 31ECh. 7.1 - Prob. 32ECh. 7.1 - 33. Blood types Human blood is classified by blood...Ch. 7.1 - Prob. 34ECh. 7.1 - Prob. 35ECh. 7.1 - Prob. 36ECh. 7.1 - Prob. 37ECh. 7.1 - Prob. 38ECh. 7.1 - 39. Fraud A company selling substandard drugs to...Ch. 7.1 - Prob. 40ECh. 7.1 - Prob. 41ECh. 7.1 - Prob. 42ECh. 7.1 - Prob. 43ECh. 7.1 - 44. Quality control A supply of 500 plasma...Ch. 7.1 - Prob. 45ECh. 7.1 - Prob. 46ECh. 7.1 - Prob. 47ECh. 7.1 - 48. Quality control A computer store offers used...Ch. 7.1 - 49. Genetics A newly married couple plan to have...Ch. 7.1 - 50. Management A frustrated store manager is asked...Ch. 7.1 - Prob. 51ECh. 7.1 - Prob. 52ECh. 7.1 - Prob. 53ECh. 7.1 - Prob. 54ECh. 7.1 - Prob. 55ECh. 7.1 - Prob. 56ECh. 7.1 - Prob. 57ECh. 7.1 - Prob. 58ECh. 7.1 - Prob. 59ECh. 7.1 - Prob. 60ECh. 7.1 - Prob. 61ECh. 7.1 - Prob. 62ECh. 7.1 - Prob. 63ECh. 7.1 - 64. Ice cream The odds of an American home having...Ch. 7.1 - Prob. 65ECh. 7.1 - 66. Rain If the probability of rain today is ,...Ch. 7.1 - Prob. 67ECh. 7.1 - Prob. 68ECh. 7.2 - CHECKPOINT
1. If a ball is drawn from a bag...Ch. 7.2 - Prob. 2CPCh. 7.2 - Prob. 1ECh. 7.2 - Prob. 2ECh. 7.2 - 5. An ordinary die is tossed. What is the...Ch. 7.2 - 6. A card is drawn at random from a deck of 52...Ch. 7.2 - 7. If the probability that event E will occur is...Ch. 7.2 - Prob. 6ECh. 7.2 - In Problems 7-8, a bag contains 5 red balls...Ch. 7.2 - Prob. 8ECh. 7.2 - Prob. 9ECh. 7.2 - 13. Suppose a die is biased (unfair) so that each...Ch. 7.2 - Prob. 11ECh. 7.2 - Prob. 12ECh. 7.2 - 15. A bag contains 4 white, 7 black, and 6 green...Ch. 7.2 - 16. In a game where only one player can win, the...Ch. 7.2 - 17. A cube has 2 faces painted red, 2 painted...Ch. 7.2 - Prob. 16ECh. 7.2 - 19. A ball is drawn from a bag containing 13 red...Ch. 7.2 - 20. A ball is drawn from a bag containing 13 red...Ch. 7.2 - 21. Drug use Forty-six percent of marijuana use...Ch. 7.2 - 22. Breast cancer According to the American Cancer...Ch. 7.2 - 23. Car maintenance A car rental firm has 425...Ch. 7.2 - 25. Linguistics Of 100 students, 24 can speak...Ch. 7.2 - 25. Linguistics Of 100 students, 24 can speak...Ch. 7.2 - 26. Management A company employs 65 people. Eight...Ch. 7.2 - Prob. 25ECh. 7.2 - Photography Rob Lee knows his camera will take a...Ch. 7.2 - 29. Salaries The table gives the percent of...Ch. 7.2 - Prob. 28ECh. 7.2 - 31. Workers The table gives the projected number...Ch. 7.2 - Prob. 30ECh. 7.2 - Prob. 31ECh. 7.2 - Prob. 32ECh. 7.2 - Prob. 33ECh. 7.2 - Prob. 34ECh. 7.2 - 37. Education A mathematics class consists of
16...Ch. 7.2 - 38. Parts delivery Repairing a copy machine...Ch. 7.2 - Oil drilling The table summarizes the opinions of...Ch. 7.2 - Prob. 38ECh. 7.2 - Prob. 39ECh. 7.2 - Prob. 40ECh. 7.2 - Prob. 41ECh. 7.2 - 44. Job bids Three construction companies have bid...Ch. 7.2 - Prob. 43ECh. 7.2 - Prob. 44ECh. 7.2 - Prob. 45ECh. 7.2 - Prob. 46ECh. 7.3 - CHECKPOINT
1. Suppose that one ball is drawn from...Ch. 7.3 - Prob. 2CPCh. 7.3 - 1. A card is drawn from a deck of 52 playing...Ch. 7.3 - Prob. 2ECh. 7.3 - 3. A die has been “loaded so that the probability...Ch. 7.3 - 4. A die has been “loaded” so that the probability...Ch. 7.3 - 5. A bag contains 9 red balls numbered 1, 2, 3, 4,...Ch. 7.3 - Prob. 6ECh. 7.3 - 7. A bag contains 4 red balls and 6 white balls....Ch. 7.3 - 8. A fair die is rolled. Find the probability that...Ch. 7.3 - 9. A fair coin is tossed 3 times. Find the...Ch. 7.3 - 10. A fair coin is tossed 14 times. What is the...Ch. 7.3 - 11. A die is thrown twice. What is the probability...Ch. 7.3 - Prob. 12ECh. 7.3 - Prob. 13ECh. 7.3 - Prob. 14ECh. 7.3 - 15. (a) A box contains 3 red balls, 2 white balls,...Ch. 7.3 - Prob. 16ECh. 7.3 - 17. Two balls are drawn from a bag containing 3...Ch. 7.3 - Prob. 18ECh. 7.3 - 19. A bag contains 9 nickels, 4 dimes, and 5...Ch. 7.3 - Prob. 20ECh. 7.3 - 21. A red ball and 4 white balls are in a box. If...Ch. 7.3 - 22. From a deck of 52 playing cards, two cards are...Ch. 7.3 - 23. One card is drawn at random from a deck of 52...Ch. 7.3 - Prob. 24ECh. 7.3 - 25. Two balls are drawn without replacement from a...Ch. 7.3 - Prob. 26ECh. 7.3 - Prob. 27ECh. 7.3 - Prob. 28ECh. 7.3 - Carbon emissions The table gives the results of a...Ch. 7.3 - Prob. 30ECh. 7.3 - Oil drilling Suppose the table summarizes the...Ch. 7.3 - Oil drilling Suppose the table summarizes the...Ch. 7.3 - Oil drilling Suppose the table summarizes the...Ch. 7.3 - Oil drilling Suppose the table summarizes the...Ch. 7.3 - Oil drilling Suppose the table summarizes the...Ch. 7.3 - Oil drilling Suppose the table summarizes the...Ch. 7.3 - Oil drilling Suppose the table summarizes the...Ch. 7.3 - Oil drilling Suppose the table summarizes the...Ch. 7.3 - Prob. 39ECh. 7.3 - Prob. 40ECh. 7.3 - Prob. 41ECh. 7.3 - Prob. 42ECh. 7.3 - 43. Quality control Each computer component that...Ch. 7.3 - Prob. 44ECh. 7.3 - 45. Lactose intolerance Lactose intolerance...Ch. 7.3 - 46. Quality control If 3% of all light bulbs a...Ch. 7.3 - 47. Quality control To test its shotgun shells, a...Ch. 7.3 - Prob. 48ECh. 7.3 - Prob. 49ECh. 7.3 - Prob. 50ECh. 7.3 - Prob. 51ECh. 7.3 - Prob. 52ECh. 7.3 - 53. Maintenance Twenty-three percent of the cars...Ch. 7.3 - Prob. 54ECh. 7.3 - 55. Testing An unprepared student must take a...Ch. 7.3 - Prob. 56ECh. 7.3 - Prob. 57ECh. 7.3 - 58. Racing Suppose that the odds that Blackjack...Ch. 7.3 - Prob. 59ECh. 7.3 - Prob. 60ECh. 7.3 - Prob. 61ECh. 7.3 - 62. Crime In an actual case.’ probability was used...Ch. 7.4 - CHECKPOINT
1. Urn I contains 3 gold coins, urn II...Ch. 7.4 - Prob. 2CPCh. 7.4 - Prob. 1ECh. 7.4 - Prob. 2ECh. 7.4 - In Problems 1-12, use probability trees to find...Ch. 7.4 - Prob. 4ECh. 7.4 - In Problems 1-12, use probability trees to find...Ch. 7.4 - Prob. 6ECh. 7.4 - In Problems 1-12, use probability trees to find...Ch. 7.4 - Prob. 8ECh. 7.4 - Prob. 9ECh. 7.4 - Prob. 10ECh. 7.4 - In Problems 1-12, use probability trees to find...Ch. 7.4 - Prob. 12ECh. 7.4 - In Problems 13-16, use (a) a probability tree and...Ch. 7.4 - Prob. 14ECh. 7.4 - In Problems 13-16, use (a) a probability tree and...Ch. 7.4 - In Problems 13-16, use (a) a probability tree and...Ch. 7.4 - 17. Lactose intolerance Lactose intolerance...Ch. 7.4 - 18. Genetics What is the probability that a couple...Ch. 7.4 - 19. Marksmanship Suppose that a marksman hits the...Ch. 7.4 - 20. Majors In a random survey of students...Ch. 7.4 - Quality control Suppose a box contains 3 defective...Ch. 7.4 - Prob. 22ECh. 7.4 - 23. Alcoholism A small town has 8000 adult males...Ch. 7.4 - Prob. 24ECh. 7.4 - 27. Pregnancy test A self-administered pregnancy...Ch. 7.4 - 29. Survey In a Student Activity Participation...Ch. 7.4 - Prob. 30ECh. 7.5 - CHECKPOINT
1. If a state permits either a letter...Ch. 7.5 - Prob. 2CPCh. 7.5 - Prob. 3CPCh. 7.5 - Prob. 4CPCh. 7.5 - Prob. 5CPCh. 7.5 - 1. Compute .
Ch. 7.5 - Prob. 2ECh. 7.5 - 3. Compute .
Ch. 7.5 - 4. Compute .
Ch. 7.5 - 5. Compute .
Ch. 7.5 - Prob. 6ECh. 7.5 - 7. How many four-digit numbers can be formed from...Ch. 7.5 - Prob. 8ECh. 7.5 - 9. Compute .
Ch. 7.5 - Prob. 10ECh. 7.5 - Prob. 11ECh. 7.5 - Prob. 12ECh. 7.5 - Prob. 13ECh. 7.5 - Prob. 14ECh. 7.5 - 15. Compute .
Ch. 7.5 - 16. Compute .
Ch. 7.5 - 17. Compute .
Ch. 7.5 - Prob. 18ECh. 7.5 - 19. Compute .
Ch. 7.5 - Prob. 20ECh. 7.5 - Prob. 21ECh. 7.5 - Prob. 22ECh. 7.5 - 23. Binz, not Benz Mercedes Benz E-Class sedans...Ch. 7.5 - 24. Ice cream cones Baskin-Robbins’logo includes...Ch. 7.5 - Prob. 25ECh. 7.5 - License plates If a state wants each of its...Ch. 7.5 - 28. Racing Eight horses are entered in a race. In...Ch. 7.5 - Prob. 29ECh. 7.5 - 30. Testing An examination consists of 12...Ch. 7.5 - Prob. 31ECh. 7.5 - Prob. 32ECh. 7.5 - 33. Management A department store manager wants to...Ch. 7.5 - 34. Call letters The call letters for radio...Ch. 7.5 - Prob. 35ECh. 7.5 - 36. Testing How many ways can a 10-question...Ch. 7.5 - Prob. 37ECh. 7.5 - Prob. 38ECh. 7.5 - Prob. 39ECh. 7.5 - 40. Astronauts If 8 people are qualified for the...Ch. 7.5 - 41. Sales A traveling salesperson has 30 products...Ch. 7.5 - Prob. 42ECh. 7.5 - Prob. 43ECh. 7.5 - Prob. 44ECh. 7.5 - Prob. 45ECh. 7.5 - Prob. 46ECh. 7.5 - 47. Committees In how many ways can a committee...Ch. 7.5 - Prob. 48ECh. 7.6 - CHECKPOINT
1. If three wires (red, black, and...Ch. 7.6 - Prob. 2CPCh. 7.6 - 1. Education If a child is given cards with A, C,...Ch. 7.6 - Prob. 2ECh. 7.6 - Politics A poll asks voters to rank Social...Ch. 7.6 - 4. Photography Two men and a woman are lined up to...Ch. 7.6 - 5. License plates Suppose that all license plates...Ch. 7.6 - Prob. 6ECh. 7.6 - 7. ATMs
(a) An automatic teller machine requires...Ch. 7.6 - 8. Keys Keys for antique General Motors cars had...Ch. 7.6 - 9. Phone numbers If the first digit of a...Ch. 7.6 - Prob. 10ECh. 7.6 - 11. Rewards As a reward for a record year, the Ace...Ch. 7.6 - 12. Mutual funds The retirement plan for a company...Ch. 7.6 - 13. Testing In a 10-question matching test with 10...Ch. 7.6 - Prob. 14ECh. 7.6 - Quality control A box of 12 transistors has 3...Ch. 7.6 - Prob. 16ECh. 7.6 - 17. Quality control A retailer purchases 100 of a...Ch. 7.6 - Prob. 18ECh. 7.6 - 19. Banking To see whether a bank has enough...Ch. 7.6 - 20. Diversity A high school principal must select...Ch. 7.6 - 21. Diversity Suppose that an employer plans to...Ch. 7.6 - 22. Lottery Four men and three women are...Ch. 7.6 - Prob. 23ECh. 7.6 - 24. Sales A car dealer has 12 different cars that...Ch. 7.6 - 25. Diversity Suppose that two openings on an...Ch. 7.6 - Prob. 26ECh. 7.6 - 27. Management Suppose that an indecisive company...Ch. 7.6 - 28. Quality control Suppose that 10 computer chips...Ch. 7.6 - Prob. 29ECh. 7.6 - Prob. 30ECh. 7.6 - Prob. 31ECh. 7.6 - 32. Evaluation Employees of a firm receive annual...Ch. 7.6 - Prob. 33ECh. 7.6 - Prob. 34ECh. 7.6 - 35. Poker A flush (5 cards from the same suit) is...Ch. 7.6 - Prob. 36ECh. 7.6 - Prob. 37ECh. 7.7 - Prob. 1CPCh. 7.7 - Can the vectors in Problems 1-4 be probability...Ch. 7.7 - Prob. 2ECh. 7.7 - Can the vectors in Problems 1-4 be probability...Ch. 7.7 - Can the vectors in Problems 1-4 be probability...Ch. 7.7 - Prob. 5ECh. 7.7 - Prob. 6ECh. 7.7 - Prob. 7ECh. 7.7 - Prob. 8ECh. 7.7 - In Problems 9-12, use the given transition matrix...Ch. 7.7 - Prob. 10ECh. 7.7 - Prob. 11ECh. 7.7 - Prob. 12ECh. 7.7 - Prob. 13ECh. 7.7 - Prob. 14ECh. 7.7 - 15. Use the matrix and initial probability vector...Ch. 7.7 - Prob. 16ECh. 7.7 - In Problems 17-20, find the steady-state vector...Ch. 7.7 - Prob. 18ECh. 7.7 - Prob. 19ECh. 7.7 - Prob. 20ECh. 7.7 - Politics Use the following information for...Ch. 7.7 - Prob. 22ECh. 7.7 - Church attendance Use the following information...Ch. 7.7 - Church attendance Use the following information...Ch. 7.7 - Church attendance Use the following information...Ch. 7.7 - Prob. 26ECh. 7.7 - Car selection Use the following information for...Ch. 7.7 - Prob. 28ECh. 7.7 - Prob. 29ECh. 7.7 - Prob. 30ECh. 7.7 - Prob. 31ECh. 7.7 - Car selection Use the following information for...Ch. 7.7 - 33. Population demographics Suppose a government...Ch. 7.7 - Prob. 34ECh. 7.7 - Prob. 35ECh. 7.7 - Prob. 36ECh. 7.7 - Prob. 37ECh. 7.7 - Prob. 38ECh. 7.7 - Prob. 39ECh. 7.7 - Prob. 40ECh. 7 - 1. If one ball is drawn from a bag containing 9...Ch. 7 - 2. Suppose a ball is drawn from a bag containing 9...Ch. 7 - 3. If the probability that an event E occurs is...Ch. 7 - 4. Suppose that a fair coin is tossed two times....Ch. 7 - 5. Suppose that a fair coin is tossed three times....Ch. 7 - 6. A card is drawn at random from an ordinary deck...Ch. 7 - 7. A deck of 52 cards is shuffled. A card is...Ch. 7 - Prob. 8RECh. 7 - Prob. 9RECh. 7 - Prob. 10RECh. 7 - 11. A bag contains 4 red balls numbered 1, 2, 3, 4...Ch. 7 - Prob. 12RECh. 7 - Prob. 13RECh. 7 - Prob. 14RECh. 7 - Prob. 15RECh. 7 - Prob. 16RECh. 7 - Prob. 17RECh. 7 - Prob. 18RECh. 7 - 19. Bag A contains 3 red, 6 black, and 5 white...Ch. 7 - Prob. 20RECh. 7 - Prob. 21RECh. 7 - Prob. 22RECh. 7 - 23. How many combinations of 8 things taken 5 at a...Ch. 7 - Prob. 24RECh. 7 - Prob. 25RECh. 7 - 26. Find the steady-state vector associated with...Ch. 7 - 27. Senior citizens In a certain city, 30,000...Ch. 7 - Prob. 28RECh. 7 - 29. United Nations Of 100 job applicants to the...Ch. 7 - Prob. 30RECh. 7 - Prob. 31RECh. 7 - Productivity Suppose that in a study of leadership...Ch. 7 - 33. Quality control A product must pass an initial...Ch. 7 - Prob. 34RECh. 7 - 36. Purchasing A regional survey found that of...Ch. 7 - 38. Management A personnel director ranks 4...Ch. 7 - Prob. 37RECh. 7 - Prob. 38RECh. 7 - Prob. 39RECh. 7 - Prob. 40RECh. 7 - 43. License plates The RBC Heritage Classic...Ch. 7 - Prob. 42RECh. 7 - Prob. 43RECh. 7 - Prob. 44RECh. 7 - Prob. 45RECh. 7 - 48. Quality control A supplier has 200 compact...Ch. 7 - 49. Stocks Mr. Way must sell stocks from 3 of the...Ch. 7 - 50. Quality control A sample of 6 fuses is drawn...Ch. 7 - Income levels Use the following information for...Ch. 7 - Prob. 50RECh. 7 - Prob. 1TCh. 7 - Prob. 2TCh. 7 - A bag contains three white balls numbered 1, 2, 3...Ch. 7 - A bag contains three white balls numbered 1, 2, 3...Ch. 7 - A bag contains three white balls numbered 1, 2, 3...Ch. 7 - Prob. 6TCh. 7 - Prob. 7TCh. 7 - Prob. 8TCh. 7 - Prob. 9TCh. 7 - 10. A cat hits the letters on a computer keyboard...Ch. 7 - Prob. 11TCh. 7 - Prob. 12TCh. 7 - Prob. 13TCh. 7 - Prob. 14TCh. 7 - Prob. 15TCh. 7 - 16. Computer chips come from two suppliers, with ...Ch. 7 - 17. A placement test is given by a university to...Ch. 7 - 18. Lactose intolerance affects about of...Ch. 7 - Prob. 19TCh. 7 - Prob. 20TCh. 7 - Prob. 21TCh. 7 - 22. A publishing company has determined that a new...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, subject and related others by exploring similar questions and additional content below.Similar questions
- If a game gives payoffs of $10 and $100 with probabilities 0.9 and 0.1, respectively, then the expected value of this game is E=0.9+0.1= .arrow_forwardA investment company has an asset A that will produce a cash flow of $5.500 with prob. 0.3 and $8,800 with prob. 0.7. They also own an asset B that pays $1,550 with prob. 0.5 and $3.500 with prob. 0.50. In this case, the probability that the company will earn a total payoff of $10,350 from their portfolio of assets is and the expected value of this portfolio is_ O a15: $10.335 O 0.15: $10885 O 035: $1088S O 035, $10.33sarrow_forwardLuca and Si play a snooker game, which consists of several rounds ('frames'). They are quite evenly matched: for the first frame, both have an equal probability of winning. However, Si's performance is influenced by the evolution of the game: if he looses a frame, his chances for winning the next one decrease to 48%; if he wins a frame, his chances for winning the next one increase to 51%. Suppose Luca and Si play 3 frames. a. What is the probability that all 3 frames are won by the same player? b. What is the probability that Luca wins the game, meaning he wins at least 2 of the 3 frames? € C. What is the probability that Luca wins the game if Si wins the first frame? . What is the expected number of games won by Luca?arrow_forward
- 12arrow_forwardQuestion (3): Mr. Samy is planning for farming dates this year based on the temperature probability upcoming summer. From the past records, the probability of extreme summer temperature is 0.55. The production rate varies with the summer temperature. The summer temperature has only two outcomes i.e., extreme or moderate. The probability of best production is 0.85 given that the summer temperature is extreme, and the probability of best production is 0.15, if the temperature is not extreme but moderate. Besides, the average dates production is 0.65, if the temperature is moderate, and the average dates production is 0.35, if the temperature is extreme but not moderate. a) How is the probability of having extreme temperature if he expected the best production this year? b) How is the probability of having moderate temperature if he expected the best production this year?arrow_forwardDraw the transition probability graph and construct the transition probability matrix of the following problems. 2. A police car is on patrol in a neighborhood known for its gang activities. During a patrol, there is a 60% chance of responding in time to the location where help is needed; else regular patrol will continue. chance for cancellation (upon receiving a call, there is a 10% in which case normal patrol is resumed) and a 30% chance that the car is already responding to a previous call. When the police car arrives at the scene, there is a 10% chance that the instigators will have fled (in which case the car returns back to patrol) and a 40% chance that apprehension is made immediately. Else, the officers will search the area. If apprehension occurs, there is a 60% chance of transporting the suspects to the police station; else they are released and the car returns to patrol.arrow_forward
- Suppose a world has two risky assets: HotPot and IceCream. The following table shows the holding period returns in each scenario. Suppose the T-bill rate is 5%. Scenario Probability Return (HotPot) Return (IceCream) Rainy 0.02 10% -5% Snowy 0.03 15% -15% Windy 0.9 10% 8% Sunny 0.05 -10% 25% Which answer is the closest value to the fifth-percentile value at risk (VaR) of holding IceCream? A. -15% B. -5% C. 25% D. -10%arrow_forwardTo generate leads for new business, Gustin Investment Services offers free financial planning seminars at major hotels in Southwest Florida. Gustin conducts seminars for groups of 25 individuals. Each seminar costs Gustin $3,400, and the commission for each new account opened is $4,900. Gustin estimates that for each individual attending the seminar, there is a 0.01 probability that he/she will open a new account. (a) Determine the equation for computing Gustin's profit per seminar, given static values of the relevant parameters. Profit = (New Accounts Opened x (b) What type of random variable is the number of new accounts opened? (Hint: Review Appendix 11.1 for descriptions of various types of probability distributions.) O uniform random variable O poisson random variable O hypergeometric random variable O binomial random variable O normal random variable (c) Construct a simulation model to analyze the profitability of Gustin's seminars. Would you recommend that Gustin continue…arrow_forward1. For determining the monthly premiums of their customers, an automobile insurance company classifies drivers into 3 classes: Good drivers (G), medium-level drivers (M) and bad drivers (B). The percentage of drivers in each class is as follows: Class G: 25%, Class M: 60%, Class B: 15%. The probabilities that a driver in each of these classes will have an accident in one year are given as follows: For Class G = 0.005, for Class M= 0.025, for Class B=0.035 a) What is the probability that a driver has an accident within the first year? b) A driver purchasing an insurance policy has an accident within the first year. What is the probability that he/she was classified as a good driver (in Class G)?arrow_forward
- Please answer the following questions and write properly.arrow_forwardIn this question you will find the steady-state probability distribution for the regular transistion matrix below with 3 states A, B, and C. A C 0.0 0.5 0.5 A В 0.2 0.4 0.4 0.25 0.5 0.25 Give the following answers as fractions OR as decimals correct to at least 5 decimal places. What is the long term probability of being in state A? What is the long term probability of being in state B? What is the long term probability of being in state C?arrow_forwardA customer always eats lunch either at restaurant A or restaurant B. • The customer never eats at A two days in a row. • If the customer eats at B one day, then the next day she is three times as likely to eat at B as at A. First, we construct the probability transition matrix for the problem. -80 [ = Initially, the customer is equally likely to eat at either restaurant, so Xo 12 -[1] =arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
College AlgebraAlgebraISBN:9781305115545Author:James Stewart, Lothar Redlin, Saleem WatsonPublisher:Cengage Learning
College Algebra
Algebra
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:Cengage Learning
Finite Math: Markov Chain Example - The Gambler's Ruin; Author: Brandon Foltz;https://www.youtube.com/watch?v=afIhgiHVnj0;License: Standard YouTube License, CC-BY
Introduction: MARKOV PROCESS And MARKOV CHAINS // Short Lecture // Linear Algebra; Author: AfterMath;https://www.youtube.com/watch?v=qK-PUTuUSpw;License: Standard Youtube License
Stochastic process and Markov Chain Model | Transition Probability Matrix (TPM); Author: Dr. Harish Garg;https://www.youtube.com/watch?v=sb4jo4P4ZLI;License: Standard YouTube License, CC-BY