Loose Leaf for Statistical Techniques in Business and Economics
Loose Leaf for Statistical Techniques in Business and Economics
17th Edition
ISBN: 9781260152647
Author: Douglas A. Lind
Publisher: McGraw-Hill Education
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Chapter 20, Problem 10E
To determine

Find the expected profit for both bottling decisions.

Give the recommended decision.

Check whether the decision alters or not when compared to the exercise 2.

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A rock concert producer has scheduled an outdoor concert. The producer estimates the attendance will depend on the weather according to the attatched image. What is the expected attendance? If tickets cost $ 30 each, the band will cost $ 150000, plus $ 55000 for administration. What is the expected profit?
K Don is considering bringing a lawsuit against the Dummote Company. His lawyer estimates that there is a 60% chance Don will make $70,000, a 30% chance Don will break even, and a 10% chance they will lose the case and Don will need to pay $40,000 in legal fees. Estimate Don's expected gain or loss if he proceeds with the lawsuit (D) Select the correct choice below and, if necessary, fill in the answer box within your choice. OA. Don has an expected gain of S OB. Don has an expected loss of S OC. Don has neither an expected gain nor expected loss.
Gabrielle has purchased the 2-year extended warranty from a retailer to cover the value of hers new cellphone in case if it gets damaged or becomes inoperable for the price of $25. Gabrielle's cellphone is worth $1400 and the probability that it gets damaged or becomes inoperable during the length of the extended warranty is estimated to be 4%. Let XX  be the retailer's profit from selling the extended warranty. Answer the following questions: 1. Create the probability distribution table for XX :  XX  outcome profit xx ,$  P(X=x)P(X=x)    the cellphone gets damaged or becomes inoperable       no claim filed     2. Use the probability distribution table to find the following:  E[X]=μX=E[X]=μX= dollars. (Round the answer to 1 decimal place.)  SD[X]=σX=SD[X]=σX= dollars. (Round the answer to 1 decimal place.)
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