STATISTICAL TECH IN BUSN CONNECT <LCPO>
18th Edition
ISBN: 9781266505942
Author: Lind
Publisher: MCG
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Chapter 20, Problem 4SR
a.
To determine
Prove that the expected payoff for Texas Electronics for the brother’s set of probabilities is $1,450.
b.
To determine
Prove that the expected payoff for Kayser Chemicals for the cousin’s set of probabilities is $1,700.
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Students have asked these similar questions
A investor estimates that, in a year’s time, a certain stock has a 30% chance to be worth $125 per share, a 45% chance to be worth $90 per share, and a 25% chance to be worth$60 per share. Determine the expectation of the price per share of the stock in a year’s time.
An individual who owns the ice cream concession at a sporting event can expect to net $600 on the sale of ice cream if the day is sunny, but only $300 if it is cloudy, and $100 if it rains. The respective probabilities for those events are 0.6, 0.3, and 0.1. What is his expected profit?
Illustration 32.
The publishing company's estimate of profits and losses and their
respective probabilities on the publication of this book during the first yer
are as follows :
Profit/Loss
Probability
Condition
500000
.20
If successful
If moderate
200000
.30
If unsuccessful
-100000
.50
Find the expected value of the profit of the company for this book during the
first year.
Chapter 20 Solutions
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