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More Retail Discount Wars Your Abercrom B men’s fashion outlet has a 30% chance of launching an expensive new line of used auto-mechanic dungarees (complete with grease stains) and a 70% chance of staying instead with its traditional torn military-style dungarees. Your rival across from you in the mall, Abercrom A, appears to be deciding between a line of torn gym shirts and a more daring line of “empty shirts” (that is, empty shirt boxes). Your corporate spies reveal that there is a 20% chance that Abercrom A will opt for the empty shirt option. The following payoff matrix gives the number of customers your outlet can expect to gain from Abercrom A in each situation:
What is the expected resulting effect on your customer base?
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Finite Mathematics
- One of the issues that usually come up in the US presidential elections is how to deal with a sluggish economy. Specifically, should the government cut spending, raise taxes, inflate the economy by printing more money, or do none of the above and let the deficit rise? And as with most other issues, politicians need to know which parts of the electorate support these options. Suppose that a random sample of 1,000 people was asked which option they support and their political affiliations. The possible responses to the question about the preferred economic option were the four options mentioned above (i.e., Cut, Raise, Inflate, and Let), and to the question about political affiliation the respondents could answer Democrat, Republican, or Independent (which included a variety of political persuasions). The responses are summarised in the table below. Do these data allow us to conclude at the 1% significance level that political affiliation affects support for the economic options?…arrow_forwardA venture capitalist, willing to invest $1,000,000$1,000,000, has three investments to choose from. The first investment, a software company, has a 15%15% chance of returning $5,000,000$5,000,000 profit, a 25%25% chance of returning $1,000,000$1,000,000 profit, and a 60%60% chance of losing the million dollars. The second company, a hardware company, has a 10%10% chance of returning $3,000,000$3,000,000 profit, a 40%40% chance of returning $1,000,000$1,000,000 profit, and a 50%50% chance of losing the million dollars. The third company, a biotech firm, has a 15%15% chance of returning $6,000,000$6,000,000 profit, a 65%65% of no profit or loss, and a 20%20% chance of losing the million dollars. (a) Construct a PDF for each investment.Enter the exact answers as fractions or decimals.arrow_forwardResearchers Kaitlin Woolley and Ayelet Fishbach (2019) told participants that they were participating in a study on the effects of Hunger. Pairs of participants were told to eat a snack of salsa and chips with a stranger, after which they engaged in a negotiation task. After which, they engaged in a negotation task. Half of the participant-pairs were randomly assigned to share a plate of salsa and chips, and the other half of participant-pairs were randomly assigned to eat their own individual servings. More specifically, the researchers reported that "participants were run in pairs of strangers. We preregistered the study and collected data from 200 undergraduate and graduate students outside a campus cafe (107 female; M=23.57 years, SD=8.80)" What did the researchers mean when they said they "preregistered the study"? a. They registered the study on a website so that students could signup to participate b. They recorded their research design and analysis plan before conducting the…arrow_forward
- A venture capitalist, willing to invest $1,000,000, has three investments to choose from: The first investment, a software company, has a 10 percent chance of returning $5,000,000 profit, a 30 percent chance of returning $1,000,000 profit, and a 60 percent chance of losing the million dollars. The second company, a hardware company, has a 20 percent chance of returning $3,000,000 profit, a 40 percent chance of returning $1,000,000 profit, and a 40 percent chance of losing the million dollars. The third company, a biotech firm , has a 10 percent chance of returning $6,000,000 profit, a 70 percent of no profit or loss, and a 20 percent chance of losing the million dollars. Find the expected value for each investment. The software company's expected value is $__ The hardware company's expected value is $___ The biotech firm's expected value is $___ Which investment has the highest expected return, on average? (software, hardware or biotech)arrow_forwardA venture capitalist, willing to invest $1,000,000 has three investments to choose from. The first investment, a software company, has a 10% chance of returning $5,000,000profit, a 30% chance of returning $1,000,000 profit, and a 60% chance of losing the million dollars. The second company, a hardware company, has a 20%chance of returning $3,000,000 profit, a 40% chance of returning $1,000,000profit, and a 40%chance of losing the million dollars. The third company, a biotech firm, has a 10% chance of returning $6,000,000 profit, a 70%of no profit or loss, and a 20% chance of losing the million dollars. (a) Construct a PDF for each investment.Enter the exact answers as fractions or decimals. x P(x) −1,000,000 1,000,000 5,000,000 software company^ x P(x) −1,000,000 1,000,000 3,000,000 hardware company^ x P(x) −1,000,000 0 6,000,000 Biotech firm (b) Find the expected value for each investment. Software company: $Hardware…arrow_forwardn the book Business Research Methods (5th ed.), Donald R. Cooper and C. William Emory discuss a market researcher for an automaker who is studying consumer preferences for styling features of larger sedans. Buyers, who were classified as “first-time” buyers or “repeat” buyers, were asked to express their preference for one of two types of styling—European styling or Japanese styling. Of 40 first-time buyers, 11 preferred European styling and 29 preferred Japanese styling. Of 60 repeat buyers, 41 preferred European styling and 19 preferred Japanese styling. (a) Set up a contingency table for these data. (b) Test the hypothesis that buyer status (repeat versus first-time) and styling preference are independent at the .05 level of significance. What do you conclude? (Round your answer to 3 decimal places.)arrow_forward
- According to a Gallup poll in October 2015, having young children at home greatly influences whether women in the U.S. prefer to stay at home or work outside of it. More than half of women, 56%, who have a child younger than 18 would ideally like to stay home and care for their house and family, while 58% of those without young children would rather work outside the home. Having young children makes little difference in men's preferences, with close to three-quarters preferring to work regardless of their parenting status. Gallup states that their method has a margin of error of 0.031.(a) Give a point estimate for the proportion of all US women with a child under 18 that would like to stay at home.(b) Give an interval estimate for the proportion of all US women with a child under 18 that would like to stay at home. Use three decimal places in your answer.( , )(c) What is the difference between a point estimate and an interval estimate?arrow_forwardASAP!! A firm purchases a microchip used in the manufacturing of LED screens from four different suppliers. TechZone supplies 32 percent of the total microchips, Advance Electronics 20 percent, PSP importers 23 percent, and TechParts inc. 25 percent. TechZone tends to have the best quality, as only 1 percent of its microchips arrive defective. Advance Electronics chips are 3 percent defective, PSP importers chips are 6 percent defective, and Parts Inc. are 5.5 percent defective. If a random chip is selected, what is the probability that the chip is defective A defective chip was discovered in the latest shipment. What is the probability that it came from TechZone supplies? A defective chip was discovered in the latest shipment. What is the probability that it came from TechParts Inc.?arrow_forward
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