of his crop.probability is 0.70 of typical weather, 0.20 of unusuallydry weather, and 0.10 of a severe storm. Let X denote thefarmer's profit next year.a. Constructa table with the probability distributionof X.b. What is the probability that the profit is $50,000 orless?c. Find the mean of the probability distribution of X.Interpret.6.15d. Suppose the farmer buys insurance for $3000 thatpays him $20,000 in the event of a severe storm thatdestroys much of the crop and pays nothing other-wise. Find the probability distribution of his profit.Find the mean and summarize the effect of buyingthis insurance.TRY6.12 BuyingeBay You are watching two items posted foreBay and bid $30 for the first and $20 for the secondgoing to win the first bidwith probability 0.1 and the second bid with probability 0.2,independentevents. Let X denote the random variable denoting theonsale onitem. You estimate that you areand you assume that winning the two bids aretotal amount of money you will spendon the two items. a. List the sample space of all possible outcomes ofwinning or losing the two bids. (Drawb. Find the probability of each outcome in the samplespace. (Use the tree diagram.)c. Find the probability distribution of X.ofa tree diagram.)heob-f10d.Find the mean of X.

Question
Asked Oct 11, 2019
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The question is 6.12. A, B, C, and D go to 6.12 but just fall on a different page. Part D. also corresponds to 6.12. Need help on part A,B,C.

of his crop.
probability is 0.70 of typical weather, 0.20 of unusually
dry weather, and 0.10 of a severe storm. Let X denote the
farmer's profit next year.
a. Constructa table with the probability distribution
of X.
b. What is the probability that the profit is $50,000 or
less?
c. Find the mean of the probability distribution of X.
Interpret.
6.15
d. Suppose the farmer buys insurance for $3000 that
pays him $20,000 in the event of a severe storm that
destroys much of the crop and pays nothing other-
wise. Find the probability distribution of his profit.
Find the mean and summarize the effect of buying
this insurance.
TRY
6.12 Buying
eBay You are watching two items posted for
eBay and bid $30 for the first and $20 for the second
going to win the first bid
with probability 0.1 and the second bid with probability 0.2,
independent
events. Let X denote the random variable denoting the
on
sale on
item. You estimate that you are
and you assume that winning the two bids are
total amount of money you will spend
on the two items.
help_outline

Image Transcriptionclose

of his crop. probability is 0.70 of typical weather, 0.20 of unusually dry weather, and 0.10 of a severe storm. Let X denote the farmer's profit next year. a. Constructa table with the probability distribution of X. b. What is the probability that the profit is $50,000 or less? c. Find the mean of the probability distribution of X. Interpret. 6.15 d. Suppose the farmer buys insurance for $3000 that pays him $20,000 in the event of a severe storm that destroys much of the crop and pays nothing other- wise. Find the probability distribution of his profit. Find the mean and summarize the effect of buying this insurance. TRY 6.12 Buying eBay You are watching two items posted for eBay and bid $30 for the first and $20 for the second going to win the first bid with probability 0.1 and the second bid with probability 0.2, independent events. Let X denote the random variable denoting the on sale on item. You estimate that you are and you assume that winning the two bids are total amount of money you will spend on the two items.

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a. List the sample space of all possible outcomes of
winning or losing the two bids. (Draw
b. Find the probability of each outcome in the sample
space. (Use the tree diagram.)
c. Find the probability distribution of X.
of
a tree diagram.)
he
ob-
f
10
d.Find the mean of X.
help_outline

Image Transcriptionclose

a. List the sample space of all possible outcomes of winning or losing the two bids. (Draw b. Find the probability of each outcome in the sample space. (Use the tree diagram.) c. Find the probability distribution of X. of a tree diagram.) he ob- f 10 d.Find the mean of X.

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Expert Answer

Step 1

part(1)

 

The sample space of all possible outcomes of winning or losing two bids.

 

S = {WL, LW, LL,WW}

 

W: winning bid

L: losing bid

 

Step 2

Part (2):

 

Compute probability of each outcome in the sample space.

 

From the given information,

 

Probability of winning the first bid is 0.1

 

Probability of winning the second bid is 0.2

 

P(WL)= P (winning the first bid but losing the second bid)

= P (winning the first bid) * P (losing the second bid)

= P (winning the first bid) * [1 – P(winning the second bid)]

= 0.1 * [1 &n...

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WL LW ww Outcome LL Probability0.08 0.18 0.72 0.02

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