52. Decision analysis. Repeat Problem 51, assuming that ad- ditional analysis caused the estimated probability of success in field B to be changed from .1 to .11.

College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter9: Counting And Probability
Section9.2: Probability
Problem 39E: Spinner A and B shown in the figure are spun at the same time. (a) Are the events "spinner A stops...
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Please help with #52
ing tickets
do not have
e1 winning
ll not be
ou?
ets.
ndom integer
; see
5 200 games.
NOV
ponvy asunnot an amung
cal) probability that the painting will be stolen during the
year is .01, what is your expected return from the insurance
company if you take out this insurance?
50. Insurance. An insurance company charges an annual pre-
mium of $75 for a $200,000 insurance policy against a house
burning down. If the (empirical) probability that a house
burns down in a given year is .0003, what is the expected
value of the policy to the insurance company?
51. Decision analysis. After careful testing and analysis, an oil
company is considering drilling in two different sites. It is
estimated that site A will net $30 million if successful (prob-
ability .2) and lose $3 million if not (probability .8); site B
will net $70 million if successful (probability .1) and lose $4
million if not (probability .9). Which site should the company
choose according to the expected return for each site?
52. Decision analysis. Repeat Problem 51, assuming that ad-
ditional analysis caused the estimated probability of success
in field B to be changed from .1 to .11.
53. Genetics. Suppose that at each birth, having a girl is not as
likely as having a boy. The probability assignments for the
number of boys in a 3-child family are approximated empiri-
cally from past records and are given in the table. What is the
expected number of boys in a 3-child family?
Number of Boys
Xi
0
1
2
Pi
.12
.36
.38
Transcribed Image Text:ing tickets do not have e1 winning ll not be ou? ets. ndom integer ; see 5 200 games. NOV ponvy asunnot an amung cal) probability that the painting will be stolen during the year is .01, what is your expected return from the insurance company if you take out this insurance? 50. Insurance. An insurance company charges an annual pre- mium of $75 for a $200,000 insurance policy against a house burning down. If the (empirical) probability that a house burns down in a given year is .0003, what is the expected value of the policy to the insurance company? 51. Decision analysis. After careful testing and analysis, an oil company is considering drilling in two different sites. It is estimated that site A will net $30 million if successful (prob- ability .2) and lose $3 million if not (probability .8); site B will net $70 million if successful (probability .1) and lose $4 million if not (probability .9). Which site should the company choose according to the expected return for each site? 52. Decision analysis. Repeat Problem 51, assuming that ad- ditional analysis caused the estimated probability of success in field B to be changed from .1 to .11. 53. Genetics. Suppose that at each birth, having a girl is not as likely as having a boy. The probability assignments for the number of boys in a 3-child family are approximated empiri- cally from past records and are given in the table. What is the expected number of boys in a 3-child family? Number of Boys Xi 0 1 2 Pi .12 .36 .38
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