proportion of vehicles which drive above the speed limit on a freeway is 85%. Suppose 100 vehicles are randomly clocked. 20 If each speeding vehicle is issued a $185 speeding ticket, the expected value of the ticket amount is $________. a $15,725 b $14,560 c $13,480

proportion of vehicles which drive above the speed limit on a freeway is 85%. Suppose 100 vehicles are randomly clocked. 20 If each speeding vehicle is issued a $185 speeding ticket, the expected value of the ticket amount is $________. a $15,725 b $14,560 c $13,480

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter17: Making Decisions With Uncertainty

Section: Chapter Questions

Problem 4MC

See similar textbooks

Related questions

Q: A company invests on selling computer units worth Php 32,000.00. The probability of maintaining this…

A: A company invests in selling computers unit worth Php 32000 The probability of maintaining this…

Q: An item is produced in large numbers. The machine is known to produce 5% defectives. A quality…

Q: For a group of 300 cars the numbers, classified by colour and country of manufacture, are shown in…

A: Probability is defined as the likelihood of the occurrence of an event.

Q: The time taken to complete a bicycle race is normally distributed, with an average time (μ) of 2.25…

A: The standard normal distribution is a normal distribution with a mean of zero and standard deviation…

Q: using 'standard Normal Table ' , calculate the following probabilities. 1. Pr(z 2.32) 3.pr(1.22…

A: The standard normal distribution (z distribution) is a normal distribution with a mean of 0 and a…

Q: A deck of 52 playing cards consists of 4 suites: clubs, spades, hearts, and diamonds. Each suite…

A: Given that the total number of cards are 52. There are 4 suits. Each suit had 13 cards.

Q: You are currently a worker earning $60,000 per year but are considering becoming an entrepreneur.…

A: Accounting profit is the entire earnings of a corporation calculated using widely accepted…

Q: You are currently a worker earning $60,000 per year but are considering becoming an entrepreneur.…

A: Given; Worker's earning per year= $60,000 Annual cost of labor= $150,000 Annual cost for rent=…

Q: Half of a set of the parts are manufactured by machine A and half by machine B. Five percent of all…

A: Solution - Given - Half set of parts manufactured by machine A and half by machine B. Percentage of…

Q: The probability of an 60 year-old male living to 70 years old is equal to in 2019. (Art_13_07_B)…

A: Answer; Option (b)85.30% is Correct

Q: The probability that a management trainee will remain with a company is 0-60. The probability that…

Q: Suppose that there are two types of entrepreneur: skilled and unskilled. Skilled entrepreneurs have…

Q: College allow the 8th level students two exams (attempts) for the exit exam and consider the best…

A: Let denote an event of failing at First test while denote an event of failing at Second test. We…

Q: 18. Arrows An Olympic archer is able to hit the bull's-eye 80% of the time. Assume each shot is…

A: The term “probability” is defined as the measure of the likelihood that a state of nature will…

Q: The number of auto parts that a company produces follows a normal distribution. The company has two…

A: The normal distribution, also known as the Gaussian distribution, is a symmetrical probability…

Q: 3. A salesman who frequently drives from Muscat to Sohar finds that his driving time is a random…

A: Given: Mean = 4.3 Standard deviation = 0.2

Q: 10. Calculate a joint probability given data: -Sample of 9000 firms. 6000 have CEO with Bachelor's…

A: Answer x=CEO has a Bachelor's Degree or a Ph. D related event =CEO with Bachelor's degree+CEO with…

Q: ‘Lottery A’ refers to a lottery ticket that pays $2,000 with a probability of 0.3, $8,000 with a…

A: Expected gains = ∑ (probability * gains)‘Lottery A’ refers to a lottery ticket that pays $2,000 with…

Q: QUESTION 3 I A would be investor with K100 000 000 is considering investing either in the share…

A: Expected Return In Uncertainty = ∑Payoff * Probability Now , Stock Market Probability of Good…

Q: Consider a lottery with three possible outcomes: $135 with probability 0.2, $100 with probability…

A: Expected Value is the mean of Probability Distribution. Expected value = ∑xx.p(x)Variance=…

Q: You work at a mechanic shop. 40% of cars that come in have a flat tire. If there are 5 cars in the…

A: Two events in the sample space would result in the binomial distribution. The two events would…

Q: 5-16. A consumer electronics store stocks four alarm clock radios. If it has fewer than four clock…

A: * SOLUTION :- * 2)

Q: Anticipated consumer demand in a restaurant for free-range steaks next month can be modeled by a…

A: Let X=demand X~N(μ,σ2)Given μ=1200 poundsσ=100 pounds

Q: In homes without working fire alarms, the chance of dying in a non-confined home fire is .0164 if…

A: Solution:-∗Economics is the study of human behaviour since it uses scientific methods it is…

Q: The accompanying table gives the outcomes and probability distribution of the number of times a…

A: The expected value tells us about the anticipated value of an event and it is computed by…

Q: A psychologist determined that the number of sessions required to obtain the trust of a new patient…

A: The concepts used to solve this problem are the probability distribution function and…

Q: The following table provides a probability distribution for the random variable r. Excel File:…

A: Hey champ, Welcome to this platform. Here you will get the answer with better quality in minimum…

Q: Student body elections are coming up and there are a lot of options. There are 3 candidates for…

A: In our daily life, we may come across the situation of guessing some vents or outcomes. For example,…

Q: 6. Two copies of a contract were mailed to Los Angeles. One was sent Air Mail; the other First…

A: Given information:Probability of air mail letter arriving in 2 days is P (A) = 0.65 Probability…

Q: 1 Los Angeles averages 266.5 sunny days per year. What is probability that Boston has at least…

A: * SOLUTION :- (21) Based on the given information the calculation as follows.

Q: 1) company. If the company does well, the investor will make a 200% profit in her investment, but if…

A: Profitability: Profitability is the basic objective of all commercial endeavors. The firm will not…

Q: The owner of a ski resort is considering installing a new ski lift that will cost $900,000. Expenses…

A: Expected Return = Sum ( Pi * Ri ) from i =1 to 3, Here, P = Probability, and R = Return.Expected…

Q: Q3/ The probability that a consumer will rate a new antipollution device for cars What are the…

A: In a Random Experiment, probability is the measure of the possibility that an event will occur.

Q: UST ANSWER SUBPART 1 There are two individuals, Individual A and Individual B. Individual A has an…

A: In Finance, Insurance is defined as the protection from financial loss. Insurance is a form of risk…

Q: The probability distribution for the number of automobiles sold during a day (x) at Bob Iron Motors…

A: x f(x) 0 0.001 1 0.007 2 0.034 3 0.099 4 0.188 5 6 0.22 7 0.136 8 0.055 9…

Q: At races, your horse, White Rum, has a probability of 1/20 of coming 1st, 1/10 of coming 2nd and a…

A: The probability of coming 1st = 1/20 , The probability of coming 2nd = 1/10 The probability of…

Q: For what range of probability that demand will be high, will she decide to lease the medium…

A: Given that, Size of Outlet Demand Low High Small $1,000 $1,000 Medium $500 $2,500 Large…

Q: A deck of 52 playing cards consists of 4 suites: clubs, spades, hearts, and diamonds. Each suite…

A: Given: A = a card "2" is drawn Total number of 2=4 Total 4 suites are there in 52 card decks. To…

Q: An investor is to purchase one of three types of real estate, as illustrated in Figure below. The…

A: Since you have posted a question with multiple parts, we will answer the first two parts for you. If…

Q: A mutual fund company has 6 funds that invest in the U.S. market and 4 that invest in international…

A: It is given that : Company has 6 funds to be invested in US. Company has 4 funds to be invested in…

Q: A proprietor of a food-stall has invented a new item of food delicacy which he calls WHIM. He has…

Q: An investment of $10,000 generates a return of $4,000 in a bull market or a return of -$1,500 in a…

A: We have given that Return probability 4000 0.4 -1500 0.6

Q: Given the following data with 25 % probability Bidder 1 bids 100 and Bidder 2 bids 80. What is the…

A: Answer - Need to find- The winning Bid Given in the question- Given the following data with 25 %…

Q: The odds against Manager X settling the wage dispute with the workers are 8:6 and odds in favour of…

Q: A committee of 4 persons is to be appointed from 3 officers of the production department, 4 officers…

Q: For a group of 300 cars the numbers, classified by color and country of manufacture, are shown in…

A: Probability: It deals with the chance of an event occurring.

Q: JUST ANSWER SUBPART 2 There are two individuals, Individual A and Individual B. Individual A has an…

A: In Finance, Insurance is defined as the protection from financial loss. Insurance is a form of risk…

Q: A car dealer has established that 40% of his potential customers prefer single cab cars while 60%…

Q: Only question #1. Little stuck.

A: We have been given the variable - number of people living in a household (X) - and the corresponding…

Question

The proportion of vehicles which drive above the speed limit on a freeway is 85%. Suppose 100 vehicles are randomly clocked.

20	If each speeding vehicle is issued a $185 speeding ticket, the expected value of the ticket amount is $________.

a	$15,725
b	$14,560
c	$13,480
d	$12,485

Expert Solution

Step 1

A probability distribution portrays the normal results of potential qualities for a given information producing process.

Probability distribution come in many shapes with various qualities, as characterized by the mean, standard deviation, skewness, and kurtosis.

Financial backers use likelihood conveyances to expect returns on resources like stocks over the long haul and to support their danger.

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Suppose that there are two types of workers: high and low. Employers cannot distinguish between different types during an interview. Employers value high type at $200,000 and low type at $100,000. Employers are in a competitive market (i.e. zero profit applies). High type workers have a reservation wage of 140,000 and low type workers have a reservation wage of 80,000. Suppose that 50% of all workers are high type. The productivities, reservation wages, and the probabilities are common knowledge). What wage would the employers offer? Please explain the solution!
Question 2An investor is to purchase one of three types of real estate, as illustrated inFigure below. The investor must decide among an apartment building, anoffice building, and a warehouse. The future states of nature that willdetermine how much profit the investor will make are good economicconditions and poor economic conditions. The profits that will result fromeach decision in the event of each state of nature are shown in Table below: Assume that it is now possible to estimate a probability of 0.60 that goodeconomic conditions will exist and a probability of .40 that poor economicconditions will exist. a) Determine the best decision by using expected opportunity loss. b) Develop a decision tree, with expected values at the probability nodes. c) Compute the expected value of perfect information.
21 Los Angeles averages 266.5 sunny days per year. What is probability that Boston has at least as many sunny days as Los Angeles? a 0.0020 b 0.0031 c 0.0047 d 0.0073
Time remaining: 01 :51 :45 Economics A dealer decides to sell an antique automobile by means of an English auction with a reservation price of $900. There are two bidders. The dealer believes that there are only three possible values, $7,200, $3,600, and $900, that each bidder’s willingness to pay might take. Each bidder has a probability of 1/3 of having each of these willingnesses to pay, and the probabilities for each of the two bidders are independent of the other’s valuation. Assuming that the two bidders bid rationally and do not collude, the dealer’s expected revenue from selling the car is approximately Group of answer choices $3,600. $2,500. $3,900. $5,400. $7,200.
using 'standard Normal Table ' , calculate the following probabilities. 1. Pr(z < -1.12) 2. Pr(z >2.32) 3.pr(1.22 < z >2.53) 4.pr(-3.22 < z < 0.22) 5.pr(-2.36 < z < -0.50)
The investor is considering how to optimally invest 1000 euros in stocks and bonds. Let's assume that the optimal decision is made based on expected utility. Suppose the investor has a utility function u(x)=ln(1+x), where x is their wealth. Let y be the proportion invested in stocks and 1−y be the proportion invested in bonds. By investing in stocks, the investor earns 1% with a probability of 39.5% and 4% with a probability of 60.5%. By investing in bonds, the investor earns a certain 2.8%. What proportion of the investment will the investor allocate to stocks and what proportion to bonds?
(Ch 7) Suppose a standard normal random variable has an 80 percent chance falling in an interval (–z, z). The value of z is approximately ____ (use Appendix C-1). a. 1.45 b. 1.35 c. 1.96 d. 1.28
If patient insurance inquiries arrive at Blue Choice insurance with a mean rate of 3.6 calls per minute, the exponential probability of waiting more than 0.5 minutes to get the next inquiry call is _____. Question 6Select one: a. 0.2407 b. 0.1222 c. 0.5000 d. 0.1653
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.
Suppose that an individual is just willing to accept a gamble to win or lose $1000 if the probability ofwinning is 0.6. Suppose that the utility gained if the individual wins is 100 utils. What is expected gains/loss.
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 probability that a visitor to an animal shelter will adopt a dog is 0.10. Out of 9 visits, what is the probability that at least (equal to or more than) 1 dog will be adopted? a. 0.3874 b. 0.6126 c. 0.5639 d. 0.1342