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given the Iso-risk contour , how many accidents per year are expected at point B ? Note that the risk value at point A is 12 deaths/year .
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- find AWx(10%) and AWy(10%)How were the small business before Covid 19?Tom wants to avoid any accidents on the work floor of his factory. If an accident does occur, itwould cost him $500,000 in damages. Installing safety equipment would decrease the probabilityof an accident occurring from 20% to 10%. However, the equipment costs $20,000 to install.10. What is his expected loss after installing the safety equipmenta. $20,000b. $50,000c. $100,000d. $125,000
- the amount of cereal consumed by a member in a hotel varies directly as their number if 900k of cereal are needed in a month by 50 members. how many members will be need 2610kg of cerealMany decision problems have the following simplestructure. A decision maker has two possible decisions, 1 and 2. If decision 1 is made, a sure cost of c isincurred. If decision 2 is made, there are two possibleoutcomes, with costs c1 and c2 and probabilities p and1 2 p. We assume that c1 , c , c2. The idea is thatdecision 1, the riskless decision, has a moderate cost,whereas decision 2, the risky decision, has a low costc1 or a high cost c2.a. Calculate the expected cost from the riskydecision.b. List as many scenarios as you can think of thathave this structure. (Here’s an example to get youstarted. Think of insurance, where you pay a surepremium to avoid a large possible loss.) For eachof these scenarios, indicate whether you wouldbase your decision on EMV or on expected utilityIt's not -10 or 10
- 6.33 Statistics released by the National HighwayTraffic Safety Administration and the National SafetyCouncil show that on an average weekend night, 1 outof every 10 drivers on the road is drunk. If 400 driversare randomly checked next Saturday night, what is theprobability that the number of drunk drivers will be(a) less than 32?(b) more than 49?(c) at least 35 but less than 47?a) There are several environmental factors that can impact a government’s financial condition. Some factors are more difficult to measure or assign probabilities to. Which of the following environmental factors is the most difficult to measure or assign a probability to? Group of answer choices 1: Business activity. 2: Rate of inflation. 3: Revenue restrictions. 4: Political culture and climate.The project manager of Good Public Relations gatheredthe data shown in Table 7.15 for a new advertisingcampaign.a. How long is the project likely to take? b. What is the probability that the project will take more than38 weeks?c. Consider the path A–E–G–H–J. What is the probability thatthis path will exceed 38 weeks?
- The frequency of breakdown of a machine per month is shown in the table. The cost ofa breakdown is $1,000 and the cost of preventive maintenance is $1,250 per month. Ifpreventive maintenance is performed, the probability of a machine breakdown is negligible. Should the manager use preventive maintenance, or would it be cheaper to repair themachine when it breaks down?Number of breakdowns 0 1 2 3Frequency of occurrence .20 .30 .40 .10Application of new better technology shiftssupply leftwards.Select one:0a. TrueO b. FalseA plaintiff believes that there is a 30% chance that he will winIf he wins, he will gain $50,000. It costs him $5000 in non‐recoverable litigation costs to take the case to court. If the plaintiff is risk‐neutral, which of the following is true? A) The plaintiff will take the case to court with an expected net‐gain of $10,000 B) The plaintiff will take the case to court with an expected net‐gain of $15,000 C) The plaintiff will not take the case to court because he is afraid of losing. D) None of the above