Annual savings due to an energy efficiency project have a most likely value of $30,000. The high estimate of $40,000 has a probability of 0.2, and the low estimate of $20,000 has a probability of 0.30. What is the expected value for the annual savings?
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Annual savings due to an energy efficiency project have a most likely value of $30,000.
The high estimate of $40,000 has a probability of 0.2, and the low estimate of $20,000
has a probability of 0.30. What is the expected value for the annual savings?
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- Players would draw a card from a standard 52 card deck. Whatever card they drew determined what they won. If they draw a face card (Jack, King, Queen) then they win $5. If they draw an Ace, they win $15. For all other cards, they win nothing. A. Fill out the probability distribution table with the probabilities of each possible outcome for this game. Round decimals to four places. x $15 $5 $0 P(x) B. What is the expected value of the distribution above? (Round to the nearest cent, two decimal places.) C. If players were charged $2 per game, would they make and average profit on the games over time, or would they take an average loss over time? D. If players were charged $3 per game, would they make and average profit on the games over time, or would they take an average loss over time?The shipping costs for fresh fruit items have been estimated and assigned the probabilities shown below. The expected value of the shipping costs is closest to: (a) $36.33 (b) $39.21 (c) $41.28 (d) $45.11 Shipping Cost, $ 34 38 55 Probability 0.22 0.31 0.47The probabilities that the life of a machine will vary from 6 to 12 years are given in the table below. The expected life of the machine is ____________. Life , Years 6 7 8 9 10 11 12 Probability 0.10 0.15 0.25 0.15 0.20 0.10 0.05
- The probability distribution for damage claims paid by the Newton Automobile Insurance Company on collision insurance is shown as follows: there is a 62% chance there won't be a claim ($0), a 11% chance of a $1000 claim, a 8% chance of a $2700 claim, and otherwise, the claim will be $9000. What is the expected value of an insurance claim for this company? (please express your answer using 2 decimal places).A company that manufactures and sells T-shirts for sporting events, is providing shirts for an upcoming tournament. Each shirt will cost $7 to produce and will be sold for $13. Any unsold shirts at the end of the tournament can be sold for $5 apiece in the near future. The company assumes the demand for the shirts will be 1,500,3,000,4,500, or 6,000. The company also estimates that the probabilities of each of these sales levels occurring will be 20%, 25%,25%, and 30%, respectively. Determine the expected monetary value of the project if the company chooses to print 4,500 shirts for the tournament. The expected monetary value is---- (Type a whole number.)A manager has to decide whether to prepare a bid or not. It costs P5,000 to prepare the bid. If the bid is submitted, the probability that the contract will be awarded is 50%. If the company is awarded the contract, it may earn an income of P100,000 if it succeeds, or pay a fine of P8,000 if it fails. The probability of success is estimated to be 80%. What is the expected value if the contract is awarded?
- The probability distribution for the number of automobiles sold during a day (x) at Bob Iron Motors is as follows. x f(x) 0 0.001 1 0.007 2 0.034 3 0.099 4 0.188 5 6 0.220 7 0.136 8 0.055 9 0.015 10 0.001 21 The expected value of the number of automobiles sold is, a 5.20 b 5.31 c 5.42 d 5.53Exercise 15:- Each unit of a product produced and sold earns a profit of Rs. 50 and unsold units result into a loss of Rs. 30. The probability distribution is given below :Units Demanded : 0 1 2. 3.Probability : 0.2. 0.2. 0.25. 0.3Calculate EPPI and EVPI.The owner of a ski resort is considering installing a new ski lift that will cost $900,000. Expenses for operating andmaintaining the lift are estimated to be $1,500 per day when operating. The U.S. Weather Service estimates thatthere is a 60% probability of 80 days of skiing weather per year, a 30% probability of 100 days per year, and a 10% probability of 120 days per year. The operators of the resort estimate that during the first 80 days of adequate snow in a season, an average of 500 people will use the lift each day, at a fee of $10 each. If 20 additional days are available, the lift will be used by only 400 people per day during the extra period; and if 20 more days of skiing are available, only 300 people per day will use the lift during those days. The owners wish to recover any invested capital within five years and want at least a 25% per year rate of return before taxes. Based on a before-tax analysis, should the lift be installed?
- A car salesperson estimates the following probabilities for the number of cars that she will sell in the next week: Number of cars 0 1 2 3 4 5 Probability 0.10 0.20 0.35 0.16 0.12 0.07 a. Find the expected number of cars that will be sold in the week.b. Find the standard deviation of the number of cars hat will be sold in the week. c. The salesperson receives a salary of $250 for the week, plus an additional $300 for each car sold. Find the mean and standard deviation of her total salary for the week. d. What is the probability that the salesperson’s salary for the week will be more than $1,000?2.4 The opening 2018 World Cup odds against being the winning team specified by espn.com were 9/2 for Germany, 5/1 for Brazil, 11/2 for France, 20/1 for England, and 7/1 for Spain. Find the corresponding prior probabilities of winning for these five teams.The success of a project depends on the effort level of a worker. In case of success the revenues will be $300,000 whereas in case of no-success the revenue will be $0. The worker can provide a low effort level or a high effort level. The effort level cannot be observed by the principal. The worker requires an expected salary of $50,000 to provide the low effort level and an expected salary of $60,000 to provide the high effort level. The success probabilities for the project are 70% in case of high effort level and 50% in case of low effort level. The compensation package consists of the base salary, s, and the bonus, b, paid out in case of the project's success. What should the base salary be for the worker in an optimal contract? a. $15,000 b. $25,000 c. $30,000 d. $40,000 e. $50,000