Question

I offer you a game where I give you $30.00 if you roll a "1" or a "2" on a standard fair dice. otherwise, if you roll anything else, you pay $12.
a. is this fair game?
b. what is the expected value?
c> hojw much would you expect to make or lose in 100 rolls?

Expert Solution
Check Mark
Blurred answer
Students who’ve seen this question also like:
Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
Not helpful? See similar books
Practical Management Science
Practical Management Science
Simulation Models. 33P
marketing sidebar icon
Your question is solved by a Subject Matter Expert
marketing sidebar icon
Want to see this answer and more?
Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*
*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Get 24/7 homework help!
8+ million solutions
Get access to millions of step-by-step textbook and homework solutions
Support from experts
Send experts your homework questions or start a chat with a tutor
Essay support
Check for plagiarism and create citations in seconds
Solve math equations
Get instant explanations to difficult math equations
Students love us.
Students love us.

Related Operations Management Q&A

Find answers to questions asked by students like you.

Q: A power plant is planning to acquire a new Diesel generating set to replace its resent unit which…

A: This question is related to the topic -Make or buy analysis (Decision Making) and this topic falls…

Q: What is the net present value of an investment thatcosts $75,000 and has a salvage value of $45,000?…

A: Formula:

Q: Offwego Airlines has a daily flight from Chicago to Las Vegas. On average, 18 ticket holderscancel…

A: Click to see the answer

Q: 4. Astore is currently offering a 60% discount on all items purchased. Your cashier is trying to…

A: Given that - Discount offered by the store = 60% Additional discount offered by the store = 20%

Q: A firm requires 96 units of good Q. The firm can only hire one worker to produce these 96 units.…

A: Solution is as follows

Q: 6- A manufacturing company expects to purchase a new production-line equipment after 3 years. If the…

A: Amount to be set aside each year  = 500000 × (AF,4%,3)= 500000 × 0.290731  = 145365.50

Q: 1. Suppose we are considering the question of how much capacity to build in the face of uncertain…

A: Find the Given details below: Given details: Demand X Units Probability of X 0 0.05 1 0.1…

Q: 5% each month (Jan -April); -2% each month (May - Dec.) The annualized risk/return ratio…

A: Annualized risk is basically annualized standard deviation and we can use the excel formula…

Q: A 5-year annuity of ten $5,300 semiannual payments will begin 9 years from now, with the first…

A: The timeline is: The cash flows in this problem are semiannual, so we need the effective semiannual…

Q: A power plant is planning to acquire a new Diesel generating set to replace its resent unit which…

A: This question is related to the topic -decision making and this question fall under the operations…

Q: A retailer is deciding how many units of a certain product to stock. The historical probability…

A: The smallest conditional value (profit) in the entire payoff table for this scenario is as given…

Q: what will be its projected new ROE

A: From the given question following points can be ascertained: Old ROE = NI / Equity…

Q: Burgers and hot dogs cost a whole number of pence, and a burger costs at least ten pence more than a…

A: Below is the solution:-

Q: Considering a used car market seller 10,000 2000 buyer 12,000 1000 A Good Car A lemon 1. Under…

A: The above question gives an explanation idea about the expectations of the prices between buyers and…

Q: The Math Club is selling pies on March 14th as a fundraiser. Let Q be the number of pies they make…

A: We have to find the fixed cost of making pies = ?  The total cost consists of two different parts :…

Q: f the fixed costs of manufacturing a new cell phone are $40,000, the sales price is $200, and…

A: The point at production cost and revenue comes at the same point or amount. This situation is the…

Q: It costs $40 to buy a telephone from a department store.The estimated maintenance cost for each year…

A: Click to see the answer

Q: As part of their application for a loan to buy Lakeside Farm, a property they hope to develop as a…

A: Breakeven is that point where revenue is equal to cost

Q: An electronics firm is currently manufacturing anitem that has a variable cost of $.50 per unit and…

A: Click to see the answer

Q: Suppose my utility function for asset position x is givenby u(x) ln x.a Am I risk-averse,…

A: a. Utility function u(x) = ln(x) Now, we will find the value of u''(x). u'(x) = 1/x u''(x) = -1/x^2…

Q: A machine can be purchased at t = 0 for $20,000. The estimated life is 5 years, with an estimated…

A: Revenue = -Purchase cost - Maintenance cost (P|A, MARR, Life span) + Salvage value (P|F, MARR, Life…

Q: Player A and B play a game in which each has three coins, a 5p, 10p and a 20p. Each selects a coin…

A: Let's get a matrix with different situations

Q: A stock had annual returns of 3.6 percent, -8.7 percent, 5.6 percent and 12.5 percent over the past…

A: Given that: Year Expected return 1 3.60% 2 -8.70% 3 5.60% 4 12.50%

Q: A Wind power plant costs R14.50 billion to build and has an expected life of 25 years. The variable…

A: Click to see the answer

Q: A bridge that was constructed at a cost of P75,000,000 is expected to last 30 years, at the end of…

A: Please find the attached calculation below-

Q: Condo Construction Company is going to First NationalBank for a loan. At the present time, the bank…

A: Cost of overstock:Co=0.10 Cost of under-stock: Cu=0.25-0.10=0.15

Q: Emma can either buy a used car or buy a new car. The used car costs $12,800 with a 40% chance she…

A: Number of alternatives: 2 Alternative 1: Buy a used car Alternative 2: Buy a new car

Q: You have been the finance director of a clothing company. You have recently been advised by the…

A: An expert judgment isn't to be influenced by anybody or it should not be made in the kindness of…

Q: You deposit $4000 each year into an account earning 5% interest compounded annually. How much will…

A: Given values P= $4000 R= 5% T= 25 years.

Q: The sale price is currently:

A: Initial selling price = $ 991st markdown = 8%2nd markdown = 25%3rd markdown = 10%

Q: Ir an employee only receives a percentage of the sales made with no additional compensation given…

A: Introduction: The term Business refers to an exchange of goods and services between the buyer and…

Q: Scott Power produces batteries. The company has determined its contribution margin to be $8…

A: Contribution margin = $8 per battery Contribution margin ratio = 0.4 (it provides a direct measure…

Q: Michelle owns a house in which she keeps valuables worth 100,000 which can get stolen with…

A: Given information,  Michelle worth = 10, 000  Probability = 1%  Puchasing Coverage = C ( 0; 100,000)…

Q: This game has two players: the employee (Homer) and the employer (Mr. Burns).  Homer has to decide…

A: A payoff matrix is described as a visible symbol of all the desirable consequences that can happen…

Q: A piece of industrial machinery costs $48,000 to replace and has essentially no salvagevalue. Over…

A: Hence, the cost per year is $640.

Q: Consider the multiround dictator game we looked at last class (see below), played 5 times in a row.…

A: As per Bartleby guidelines, we can only solve one question at a time...Kindly upload the other…

Q: A NEW GENERATOR HAS JUST BEEN INSTALLED. IT IS EXPECTED THAT THERE WILL BE NO MAINTENANCE CHARGES…

A: No maintenance charge untill= 5 years Years of service= 14 years Cash flow from 5 to 14 years = for…

Q: * 00 Miles is considering buying a new pickup truck for his lawn service firm. The economy in town…

A: Decision theory helps the managers to analyse the available alternatives and understand the logic…

Q: A certain medical device will result in an estimated $15,000 reduction in hospital labor expenses…

A: Click to see the answer

Q: the probability distribution for their product

A: calculating the expected value of demand is following the sum values of probability multiplied by…

Q: 2. A payment of £10 will be made in 10 years. The annual effective interest rate is 1 % p.a. Compute…

A: given, interest rate =1% p.a a payment = 10

Q: An expensive piece of equipment is used in the masking operation for semiconductor manufacture.A…

A: given,

Q: Phillip Witt, president of Witt Input Devices, wishesto create a portfolio of local suppliers for…

A: Given information - Cost of shutdown = $400,000 Super event risk = 3% Unique event risk = 5% Cost of…

Q: 46. You are making several runs of a simulation model,each with a different value of some decision…

A: The decision problem might have more than one dependent variable. On the basis of profit, the…

Q: 3-26 Megley Cheese Company is a small manufacturer of several different cheese products. One of the…

A: Given data is

Q: How many units must be sold to make a profit of $500.00?

A: Given details : Fixed cost = $900 Variable cost = $ 4.50 Selling price = $ 5.50 profit to make = $…

Knowledge Booster
Operations Management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
  • An airline studied the data from their passenger records and noted that their customers turn up only about 95% of the time. A flight can accommodate 40 passengers and each seat costs 4,000 Php. Suppose each passenger books a ticket independently and the airline decides to sell 42 tickets for the flight. If more than 40 show up for the flight , then the extra passengers will be compensated PhP10,000 for rebooking and other expenses. 5. If Profit = Ticket sales-Compensation of Bumped passenger(s). What is the profit if 42 customers show up?
    Which of the following scenarios accurately reflects the meaning of the profit leverage effect? Group of answer choices With a 7.6% profit margin, decreasing your cost of goods sold (COGS) by $10,000 increases your pre-tax profits by $10,000, but increasing your sales by $10,000 only increases your pre-tax profits by $760. When operating with a 7.6% profit margin, your cost of goods sold will be $10,000 as long as your sales exceed $10,000. With a 7.6% profit margin, every additional $10,000 in sales increases your pre-tax profits by $10,000, while every $10,000 saved in purchasing increases your pre-tax profits by just $760. If your profit margin is 7.6%, every $10,000 saved in purchasing lowers your COGS sold by $760.
    An elevator company has redesigned their product to be 50% moreenergy efficient than hydraulic designs. Two designs are beingconsidered for implementation in a new building.(a) Given an interest rate of 20% which bid should be accepted?Alternatives A BInstalled cost $45,000 $54,000Annual cost 2700 2850Salvage value 3000 4500Life, in years 10 15
  • Pascal's current wealth is $140 and he has exponential utility with 0.002. He is considering the purchase of a lottery that mat costs SX There la a 40% chance that the ticket will have a St0 payoff, otherwise it will be worth $0. (a) What would Pancar's utility be if he did not purchase the ticket? thes (b) What woula Pascal's utility be it he purchased the ticket and won? utles to What would sa y be if he purchased the ticket and kost? What is me manum price that Pascal would be willing to pay for the lottery ticket? Piness round your aner to he neart cemt Maximum Price 1
    Emma can either buy a used car or buy a new car. The used car costs $12,800 with a 40% chance she will run into mechanical problems that will cost $3500 to repair. The new car costs $17,595. Also, there is an 8% chance she will get into an accident in the next 5 years, which will cost 20% of the value of her car. If the cost of the accident is greater than $5000 she would only pay a deductible of $3000. What is the expected value of buying a new car? What is the expected value of buying a used car? Draw a probability tree.
    Your manager is quite concerned about the recent deterioration of a section of the roof on a building that houses your firm's computer operations. According to your assistant there are three options which merit consideration: A, B, and C. Moreover, there are three possible future conditions that must be included in the analysis:   I, which has a probability of occurrence of .5; II, which has a probability of .3; and III, which has a probability of .2. If condition I materializes, A will cost $12,000, B will cost $20,000, and C will cost $16,000. If condition II materializes, the costs will be $15,000 for A, $18,000 for B, and $14,000 for C. If condition III materializes, the costs will be $10,000 for A, $15,000 for B, and $19,000 for C.   (A) Draw a decision tree for this problem  (B) Using expected monetary value, which alternative should be chosen? Explain your Answer.
  • A group is planning to back the production of a new musical atLusaka Playhouse. It would cost K100 000 to stage for the firstmonth. If well received by critics, it will be kept on for a further sixmonths earning a profit of K350 000. If critics dislike it, it will close atthe end of the first month. There is a 50: 50 chance of a favourablereview.Should the group invest in the musical?
    For the following payoff table, what alternative should be chosen if you are following a Maximin strategy?   alternative.              yes.         No small.                       10.        30 Medium                     20        40 medium Large          30       45 large                        40        35 extra large                60      20 prior probability         0.3   0.7   a.Medium Large b.Medium c.Small d.Extra Large e.Large
    1. If today stock is trading for $60 a share. You are confident that the stock price will experience a change in the value of over 30% relative to the current price in either upward or downward direction over the course of next year. Today you decide to transact in either one or two stocks maturing in one year. The strike price of both options is $60 a share. The call option premium is $6 and put option premium is $5. Given this information and your belief, you should _______. a. buy 2 calls b. buy 1 call and sell 1 put c. sell 1 call and 1 sell put d. buy 1 call and buy 1 put e. sell 2 puts Please explain
  • Assume a fixed cost of $900, a variable cost of $4.50, and a selling price of $5.50. How many units must be sold to make a profit of $500.00?
    You are the owner of four Taco Bell restaurant locations. You have a business loan with Citizens Bank taken out 60 days ago that is due in 90 days. The amount of the loan is $70,000, and the rate is 9.5% using ordinary interest. You currently have some excess cash: $25,000. Due to situations beyond your control, you, as the owner, must make an immediate business decision now to pursue only one of these two choices:1) sending all of the $25,000 to Citizens Bank as a partial payment on your loan, or2) using the $25,000 to purchase serving supplies such as food containers, cups, and plastic dinnerware for your inventory. This is the last day to take advantage of the opportunity to save some money due to a special discount price that is "10% off" the normal cost of $25,000 for these items. Consider these calculations: (a) How much interest (in $) will you save on this loan if you make the partial payment and don't purchase the additional serving supplies? (Round your answer to two…
    Beckham Broadcasting Company (BBC) has operating income (EBIT) of $2,500,000.The company’s depreciation expense is $500,000 and it has no amortization expense. The company is 100 percent equity financed (that is, its interest expense is zero). The company has a 40 percent tax rate, and its net investment in operating capital is $1,000,000.a. What is BBC’s net income?b. What is BBC’s net operating profit after taxes (NOPAT)?c. What is BBC’s free cash flow?
    • SEE MORE QUESTIONS
    Recommended textbooks for you
  • Practical Management Science
    Operations Management
    ISBN:9781337406659
    Author:WINSTON, Wayne L.
    Publisher:Cengage,
  • Practical Management Science
    Operations Management
    ISBN:9781337406659
    Author:WINSTON, Wayne L.
    Publisher:Cengage,