PROJECT 22 - (Biotex Inc.) Through genetic engineering, Biotex Inc. has developed a new variety of orange tree whose oranges are seedless and sweeter than the ordinary oranges. However, there is some concern that, in the early few weeks of transplantation, the plant is overly prone to die in the normal weather extremes. In order to investigate this possible anomoly, Biotex would like to perform a field experiment. Mr. Charles (Chuck) Skerl (S), the field manager for the experiment and his assistant, Gary Hubler, invited their old friend, William (Bill) Barten (B), who operates a large orchard and is a frequent customer of Biotex Inc., to try the plants in his orchard. As Mr. Barten arrived, Mr. Skerl explained the purpose of the visit as follows. S:- Bill, we have an offer that you will find hard to refuse. B:- Chuck, you know I like all such offers. Lay it on me. S:- Well, we have developed a really sweet variety of oranges , we believe, someday it will take over the orange market. And we would like you to be the first one to grow and market it. We have been working with a decade now and I cannot think of any better customer for this occasion. B:- Thanks for the warm words, I also carry similar feelings for Biotex. But tell me more about the plant. Is the plant ready to hit the open field? S:- Yes, we have all the state and the federal approvals to test the plant in the open field. We have 225 plants, about 4 feet high, ready to be transplanted. These plants should start bearing fruit within three years. Even though the usual cost is $60 per plant, we would like to offer these at $50 per plant. You are getting the discount for a simple reason. As you already know, we back all our plants with the firm guarantee that should any plant die within two months of transplantation, we will replace it free of charge. In this case, however, these are experimental plants and we do not have any backups. Just as in most cases, we suspect that about 15%) of the plants may die due to transplantation and change of environment. The reduction in price pretty much offsets this possible loss. We also understand that this is a new plant and there is some risk involved. So, to balance this risk, after the usual 15% plant loss, should any plant die we will buy back the dead plant at the rate of $60 per plant. So, you see this is a win win situation for you. I can see your oranges taking the market like a storm. You probably will have to find a catchy name like Sweetkist or something. for over you B:- I am not sure Chuck. If this is such a good offer, why Biotex is not taking the full share? S:- Well, you know we are not in the business of growing fruits. For one thing, we are a genetic engineering company and do not have the land and the expertise to actually grow fruit trees on a commercial basis. We have seen our res ults in our green house and, believe me, we are amazed at the results. Let me be honest with you. By sharing the trees with you we also get something in return. We have to show the State of California how the trees survived in the open field. We will be paying visits to your orchard and provide you our full support. B:- As usual you have presented the case very well. I tell you it is an interesting proposition. But, like I said, I have some concerns. I am worried that should the plants die by the bunches I will be left with for at least a season. I have to meet my tax and mortgage obligations for the land. The cost of labor and other expenses when added up can take me down. Well, my feeling is that if you pay me $100 per lost plant that occurs beyond the normal 15% then I would be less apprehensive about the whole experiment. an open field S:- I understand your concerns Bill. I would also be a little worried about a catastrophy. However, I am not sure my boss will agree to go as high as $100 per lost plant. I tell you what I can do. I will see how high my boss will be willing to go. I have a feeling that we will be able to come to a mutually agreeable buy back price. Bill aggreed to have further negotiations. After he left, Chuck asked Gary to perform some calculations. S:- Gary I want you to do the following calculations. . (i) As you know we have invested about $40 per plant to develop these prototype plants. I will be willing to offer as high a buy-back price which makes us break even. If the plant loss is going to be the usual 15%, find out how many plants do we expect to lose and what is the variability (standard deviation) going to be. (ii) Again assuming 15% plant loss, what is the chance that over 90% of the plants will survive? And what is the chance that less than 85% of the plants will survive? (iii) Find out the (expected) net profit we will make if the plant death rate is 15% and we buy back dead plants at the price of $60 per dead plant. For instance, our profits for different number of dead plants are as follows:

Question

please solve the bullet points question.

please show me details for the answers and what are the formulas used

for question 2 please once done solving draw the bell shaped graph with labels such as ( 90%) or (80%).

 

PROJECT 22 - (Biotex Inc.) Through genetic engineering, Biotex Inc.
has developed a new variety of orange tree whose oranges are seedless and
sweeter than the ordinary oranges. However, there is some concern that, in
the early few weeks of transplantation, the plant is overly prone to die in
the normal weather extremes. In order to investigate this possible anomoly,
Biotex would like to perform a field experiment.
Mr. Charles (Chuck) Skerl (S), the field manager for the experiment and
his assistant, Gary Hubler, invited their old friend, William (Bill) Barten
(B), who operates a large orchard and is a frequent customer of Biotex Inc.,
to try the plants in his orchard. As Mr. Barten arrived, Mr. Skerl explained
the purpose of the visit as follows.
S:- Bill, we have an offer that you will find hard to refuse.
B:- Chuck, you know I like all such offers. Lay it on me.
S:- Well, we have developed a really sweet variety of oranges , we believe,
someday it will take over the orange market. And we would like you to be
the first one to grow and market it. We have been working with
a decade now and I cannot think of any better customer for this occasion.
B:- Thanks for the warm words, I also carry similar feelings for Biotex. But
tell me more about the plant. Is the plant ready to hit the open field?
S:- Yes, we have all the state and the federal approvals to test the plant in the
open field. We have 225 plants, about 4 feet high, ready to be transplanted.
These plants should start bearing fruit within three years. Even though the
usual cost is $60 per plant, we would like to offer these at $50 per plant.
You are getting the discount for a simple reason. As you already know, we
back all our plants with the firm guarantee that should any plant die within
two months of transplantation, we will replace it free of charge. In this case,
however, these are experimental plants and we do not have any backups.
Just as in most cases, we suspect that about 15%) of the plants may die due
to transplantation and change of environment. The reduction in price pretty
much offsets this possible loss. We also understand that this is a new plant
and there is some risk involved. So, to balance this risk, after the usual 15%
plant loss, should any plant die we will buy back the dead plant at the rate
of $60 per plant. So, you see this is a win win situation for you. I can see
your oranges taking the market like a storm. You probably will have to find
a catchy name like Sweetkist or something.
for over
you
Expand
Transcribed Image Text

PROJECT 22 - (Biotex Inc.) Through genetic engineering, Biotex Inc. has developed a new variety of orange tree whose oranges are seedless and sweeter than the ordinary oranges. However, there is some concern that, in the early few weeks of transplantation, the plant is overly prone to die in the normal weather extremes. In order to investigate this possible anomoly, Biotex would like to perform a field experiment. Mr. Charles (Chuck) Skerl (S), the field manager for the experiment and his assistant, Gary Hubler, invited their old friend, William (Bill) Barten (B), who operates a large orchard and is a frequent customer of Biotex Inc., to try the plants in his orchard. As Mr. Barten arrived, Mr. Skerl explained the purpose of the visit as follows. S:- Bill, we have an offer that you will find hard to refuse. B:- Chuck, you know I like all such offers. Lay it on me. S:- Well, we have developed a really sweet variety of oranges , we believe, someday it will take over the orange market. And we would like you to be the first one to grow and market it. We have been working with a decade now and I cannot think of any better customer for this occasion. B:- Thanks for the warm words, I also carry similar feelings for Biotex. But tell me more about the plant. Is the plant ready to hit the open field? S:- Yes, we have all the state and the federal approvals to test the plant in the open field. We have 225 plants, about 4 feet high, ready to be transplanted. These plants should start bearing fruit within three years. Even though the usual cost is $60 per plant, we would like to offer these at $50 per plant. You are getting the discount for a simple reason. As you already know, we back all our plants with the firm guarantee that should any plant die within two months of transplantation, we will replace it free of charge. In this case, however, these are experimental plants and we do not have any backups. Just as in most cases, we suspect that about 15%) of the plants may die due to transplantation and change of environment. The reduction in price pretty much offsets this possible loss. We also understand that this is a new plant and there is some risk involved. So, to balance this risk, after the usual 15% plant loss, should any plant die we will buy back the dead plant at the rate of $60 per plant. So, you see this is a win win situation for you. I can see your oranges taking the market like a storm. You probably will have to find a catchy name like Sweetkist or something. for over you

B:- I am not sure Chuck. If this is such a good offer, why Biotex is not
taking the full share?
S:- Well, you know we are not in the business of growing fruits. For one
thing, we are a genetic engineering company and do not have the land and
the expertise to actually grow fruit trees on a commercial basis. We have
seen our res ults in our green house and, believe me, we are amazed at the
results. Let me be honest with you. By sharing the trees with you we also
get something in return. We have to show the State of California how the
trees survived in the open field. We will be paying visits to your orchard
and provide you our full support.
B:- As usual you have presented the case very well. I tell you it is an
interesting proposition. But, like I said, I have some concerns. I am worried
that should the plants die by the bunches I will be left with
for at least a season. I have to meet my tax and mortgage obligations for
the land. The cost of labor and other expenses when added up can take me
down. Well, my feeling is that if you pay me $100 per lost plant that occurs
beyond the normal 15% then I would be less apprehensive about the whole
experiment.
an open field
S:- I understand your concerns Bill. I would also be a little worried about
a catastrophy. However, I am not sure my boss will agree to go as high as
$100 per lost plant. I tell you what I can do. I will see how high my boss will
be willing to go. I have a feeling that we will be able to come to a mutually
agreeable buy back price.
Bill aggreed to have further negotiations. After he left, Chuck asked
Gary to perform some calculations.
S:- Gary I want you to do the following calculations.
. (i) As you know we have invested about $40 per plant to develop these
prototype plants. I will be willing to offer as high a buy-back price
which makes us break even. If the plant loss is going to be the usual
15%, find out how many plants do we expect to lose and what is the
variability (standard deviation) going to be.
(ii) Again assuming 15% plant loss, what is the chance that over 90%
of the plants will survive? And what is the chance that less than 85%
of the plants will survive?
(iii) Find out the (expected) net profit we will make if the plant death
rate is 15% and we buy back dead plants at the price of $60 per dead
plant. For instance, our profits for different number of dead plants are
as follows:
Expand
Transcribed Image Text

B:- I am not sure Chuck. If this is such a good offer, why Biotex is not taking the full share? S:- Well, you know we are not in the business of growing fruits. For one thing, we are a genetic engineering company and do not have the land and the expertise to actually grow fruit trees on a commercial basis. We have seen our res ults in our green house and, believe me, we are amazed at the results. Let me be honest with you. By sharing the trees with you we also get something in return. We have to show the State of California how the trees survived in the open field. We will be paying visits to your orchard and provide you our full support. B:- As usual you have presented the case very well. I tell you it is an interesting proposition. But, like I said, I have some concerns. I am worried that should the plants die by the bunches I will be left with for at least a season. I have to meet my tax and mortgage obligations for the land. The cost of labor and other expenses when added up can take me down. Well, my feeling is that if you pay me $100 per lost plant that occurs beyond the normal 15% then I would be less apprehensive about the whole experiment. an open field S:- I understand your concerns Bill. I would also be a little worried about a catastrophy. However, I am not sure my boss will agree to go as high as $100 per lost plant. I tell you what I can do. I will see how high my boss will be willing to go. I have a feeling that we will be able to come to a mutually agreeable buy back price. Bill aggreed to have further negotiations. After he left, Chuck asked Gary to perform some calculations. S:- Gary I want you to do the following calculations. . (i) As you know we have invested about $40 per plant to develop these prototype plants. I will be willing to offer as high a buy-back price which makes us break even. If the plant loss is going to be the usual 15%, find out how many plants do we expect to lose and what is the variability (standard deviation) going to be. (ii) Again assuming 15% plant loss, what is the chance that over 90% of the plants will survive? And what is the chance that less than 85% of the plants will survive? (iii) Find out the (expected) net profit we will make if the plant death rate is 15% and we buy back dead plants at the price of $60 per dead plant. For instance, our profits for different number of dead plants are as follows:

Expert Answer

1 Rating

Want to see the step-by-step answer?

Check out a sample Q&A here.

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.
Tagged in
Math
Statistics

Related Statistics Q&A

Find answers to questions asked by students like you.

Q: An automobile manufacturer finds that 1 in every 2000 automobiles produced has a particular manufact...

A: From the given information,An automobile manufacturer finds that 1 in every 2000 automobiles produce...

Q: In a survey of 909 U.S.adults with children conducted by the financial Industry Regulatory Authority...

A: The hypotheses for the test is given below.Null hypothesis:H0: p = 0.30Alternative hypothesis:H1: p ...

Q: a previous analysis of paper boxes showed that the standard deviation of their lengths is 13 millime...

A: It is given that confidence level is 0.95, standard deviation is 13 and margin of error E is 4.Here,

Q: Please see picture

A: It is provided that X defined as random variable, follow the distribution of Benford’s Law.a)To show...

Q: Which of the following is an example of a nominal scale? Weight Order of finish in the National Fo...

A: Nominal scales:Nominal scales are used in the identification, naming, classification, or categorizat...

Q: What type of variable ( nominal or ordinal) is ideology?

A: We are required to find the level of measurement ( or variable type) for variable Ideology.

Q: what are the appropriate numbers of participants needed for each of the folowing planned studies to ...

A: (a)The conditions for the effect size for the t test means are:If d ≤ 0.2, then the effect size is s...

Q: How so I solve x+19=0.                                                         3

A: Hello there! You have posted the algebra question under statistics. Please make sure to post the que...

Q: A study group takes a practice statistics exam. They find that the group has a mean score of 80 with...

A: Standard normal distribution:The standard normal distribution is a special case of normal distributi...

Q: An automobile manufacturer finds that 1 in every 2500 automobiles produced has a particular manufact...

A: It is given that 1 in every 2,500 automobiles has a defect. Therefore, probability of getting a defe...

Q: A researcher wants to investigate the relationship between number of hours spent outdoors and the he...

A: Solution:Step 1:After copying the given data in to EXCEL software,Go to Data > Data analysis >...

Q: Assume that a procedure yields a binomial distribution with a trial repeated n=5n=5 times. Use some ...

A: From the given information, the binomial experiment with 5 trails and p=0.676. The probability mass ...

Q: Sixty-eight percent of adults would still consider a car brand despite product/safety recalls. You r...

A: Given datap = 0.68n = 20The given distribution is Binomial distribution, because there are two outco...

Q: Find the mean of the data summarized in the given frequency distribution. 12) The highway speeds of ...

A: Mean for grouped data:The formula to find mean for grouped data is as follows:

Q: Question Help An investment counselor calls with a hot stock tip. He believes that if the economy re...

A: Expected value:The expected value of a random variable is the sum of the possible values that the ra...

Q: Please show TI 84 steps

A: Computation of mean and standard deviation:Here, n=600; p̂=0.46; q̂=0.54 (=1−0.46).The mean and stan...

Q: An automobile manufacturer finds that 1 in every 2000 automobiles produced has a particular manufact...

A: From the given information,An automobile manufacturer finds that 1 in every 2000 automobiles produce...

Q: Little Ruby's Halloween candy bag contains 20 bars of chocolate and 30 boxes of Nerds. What is the p...

A: Computing the probability that Ruby selects a chocolate bar:

Q: Please see picture

A: Click to see the answer

Q: A study was conducted on students from a particular high school over the last 8 years. The following...

A: The mean and standard deviations of SAT score are 1086 and 202.The value of the 20th percentile for ...

Q: A poll asked the question, "What do you think is the most important problem facing this country toda...

A: Solution:The confidence interval formula for proportion formula is,

Q: Whooping cough (pertussis) is a highly contagious bacterial infection that was a major cause of chil...

A: Solution: We are given that 80% of unvaccinated children who are exposed to whooping cough will deve...

Q: Assume that a procedure yields a binomial distribution with a trial repeated n=13n=13 times. Use eit...

A: Giventotal number of trails = n = 13probability of success = p = 0.46To find the probability of 1 su...

Q: Construct a​ 95% confidence interval for the population mean muμ. Assume the population has a Normal...

A: The margin of error is obtained below:The level of significance=1-0.95=0.05.The degrees of freedom= ...

Q: The GPA's of all students enrolled at a large university have an appromimately normal distribution w...

A: It is given that the GPA of students enrolled at university is normally distributed with mean 3.02 a...

Q: #4: Suppose that X1,... , X7n is an i.i.d. random sample drawn from a U[a, 1] uniform distribution, ...

A: Click to see the answer

Q: Dr. Song calculates a correlation coefficient of -.14 between the number or pizzas eaten and scores ...

A: Correlation coefficient:It measures the relationship between two variables. The range of correlation...

Q: Possion Distribution  The number of calls received by an office on Monday morning between 8:...

A: Here the random variable X, Number of calls between 8.00AM and 9.00 AM follows Poisson distribution ...

Q: Assume that females have pulse rates that are normally distributed with a mean of 75.0 beats per min...

A: Central Limit Theorem for mean:If a random sample of size n is taken from any population having mean...

Q: The mean score on a driving exam for a group of​ driver's education students is 60 ​points, with a s...

A: Solution:From the given information, k value is 22, standard deviation of points is 4 and mean numbe...

Q: Statistics Question

A: Given:

Q: Problem 31

A: The null and alternative hypotheses are given below:

Q: For a variable x that is noramally distributed with a mean of μ = 50 and a standard deviation σ = 5,...

A: It is given that the mean and standard deviation are 50 and 5, respectively.

Q: A random sample of 25 observations yield a mean of 106 and a standard deviation of 12. What is the p...

A: It is given that mean and standard deviation are106 and 12, respectively.By using central limit theo...

Q: Which is better and corresponds to the higher relative position, a score of 92 on a test with a mean...

A: Solution:From the given information, score of 92 on a test with standard deviation of 15 and mean of...

Q: A research poll showed that 1282 out of 2040 randomly polled people in a country favor the death pen...

A: Confidence interval:A range of values such that the population parameter can expected to contain for...

Q: Find the minimum sample size n needed to estimate muμ for the given values of​ c, sigmaσ​, and E. ce...

A: It is given that confidence level is 0.90, standard deviation is 7.3 and margin of error E is 2.

Q: a manufacturer of bolts have a quality control policy that requires it to destroy any bolts that are...

A: It is given that the mean and standard deviation are 13 and 0.05, respectively.

Q: A __________________________ is used to assist in determining visually if two variables are associat...

A: It is given that the two variables are associated.

Q: A certain flight arrives on time 88 percent of the time. Suppose 121 flights are randomly selected. ...

A: Hey there! Thank you for posting the question. Since your question has more than 3 parts, we are sol...

Q: An effect size of .25 would be considered?

A: Solution:The conditions for the effect size are:If d <0.3, then the effect size is small.If 0.3&l...

Q: A researcher uses a repeated-measures design to compare individuals’ performance before treatment wi...

A: If all the participants show improved performance of 8 or 9 points after the treatments, the researc...

Q: Height and weight are two measurements used to track a child’s development. The World Health Organiz...

A: It is given that mean and standard deviation are 10.2 and 0.8, respectively.

Q: Problem 4: Let X1, X2,..., Xn be a random sample of size n from the uniform population given by 1 1 ...

A: Let X1, X2 ……….Xn be a random sample of size n from the uniform population.Probability density funct...

Q: The age of a first-grader on September 1 at Garden Elementary School has the following distribution:...

A: a)The probability that she is over 6.5 years old can be calculated:

Q: Number 6.

A: 6.a.The probability that the sample mean will be greater than 50 is obtained below:From the given in...

Q: Suppose x, the grade on a midterm exam, is normally distributed with mean 70 and standard deviation ...

A: It is given that the mean and standard deviation are 70 and 10, respectively.

Q: Please See picture

A: 4.22 a) The expected number of games that are played when i=2 is -2p2+2p+2. From the given informati...

Q: Determine whether to use a permutation or combination to answer each question, and then determine th...

A: Permutation rule:There are n different items and r number of selections and the selections are made ...

Q: E and F are mutually exclusive events. P(E) = 0.91; P(F) = 0.42. Find P(E | F)

A: Mutually Exclusive Events: The events E and F are mutually exclusive events. That is, P(E and F)=0.