A concessions manager at the Tech versus A&M football game must decide whether to have thevendors sell sun visors or umbrellas. There is a 30% chance of rain, a 15% chance of overcastskies, and a 55% chance of sunshine, according to the weather forecast in College Junction, wherethe game is to be held. The manager estimates that the following profits will result from eachdecision, given each set of weather conditions:Weather ConditionsRainSunshineOvercast.15Decision.03.55Sun visors$-500$-200$1,500Umbrellas2,000-900a. Compute the expected value for each decision, and select the best one.b. Develop the opportunity loss table, and compute the expected opportunity loss for eachdecision.

Answered: Image /qna-images/answer/306a0f67-43b9-4397-84a4-736cd68a79d6.jpg

Answered: A concessions manager at the Tech…

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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A friend who lives in Los Angeles makes frequent consultingtrips to Washington, D.C.; 50% of the time shetravels on airline #1, 30% of the time on airline #2, and the remaining 20% of the time on airline #3. For airline#1, flights are late into D.C. 30% of the time and late intoL.A. 10% of the time. For airline #2, these percentagesare 25% and 20%, whereas for airline #3 the percentagesare 40% and 25%. If we learn that on a particular trip shearrived late at exactly one of the two destinations, whatare the posterior probabilities of having flown on airlines#1, #2, and #3? Assume that the chance of a late arrival inL.A. is unaffected by what happens on the flight to D.C.[Hint: From the tip of each first-generation branch on atree diagram, draw three second-generation brancheslabeled, respectively, 0 late, 1 late, and 2 late.]
The weather report says that there is a 30% chance it will rain this morning. If you take your umbrella, which cost $25,and it does not rain, there is a 20% chance that you will lose it somewhere. If you do not take your umbrella, and it does rain, you will arrive at class damp and smelly, which you would pay $10 to avoid. Should you take your umbrella?
Joseph Bryan owns his own snow-cone business and lives 30 miles from a California beach resort. The sale of snow-cones is highly dependent on his location and on the weather. At the resort, his profit will be $120 per day in fair weather, $10 per day in bad weather. At home, his profit will be $70 in fair weather and $55 in bad weather. Assume that on any particular day, the weather service suggests a 40% chance of foul weather. Construct Joseph’s decision tree.
John Clinton owns his own Gno-Cone business and lives 30 miles from a beach resort. The sale of Gno-Cones is highly dependent upon his location and upon the weather. At the resort, he will profit $120 per day in fair weather, $10 per day in bad weather. At home, he will profit $70 in fair weather, $55 in bad weather. Assume that on any particular day, the weather service suggests a 40% chance of foul weather. What decision is recommended by the expected monetary value criterion? [Hint: Use decision tree approach]
In a statistics activity, students are asked to spin a penny and a dime and determine the proportion of times that each lands with tails up. The students believe that since a dime is lighter, it will have a lower proportion of times landing tails up compared to the penny. The students are instructed to spin the penny and the dime 30 times and record the number of times each lands tails up. For one student, the penny lands tails side up 18 times, and the dime lands tails side up 20 times. Let PD = the true proportion of times a dime will land tails up and pp = the true proportion of times a penny will land tails up. Which of the following is the correct standardized test statistic and P-value for the hypotheses, Ho: Po-Pp= 0 and H₂: Po-Pp<0?
In a statistics activity, students are asked to spin a penny and a dime and determine the proportion of times that each lands with tails up. The students believe that since a dime is lighter, it will have a lower proportion of times landing tails up compared with the penny. The students are instructed to spin the penny and the dime 30 times and record the number of times each lands tails up. For one student, the penny lands tails side up 18 times, and the dime lands tails side up 20 times. Let pp = the true proportion of times a dime will land tails up and pp = the true proportion of times a penny will land tails up. The P-value for this significance test is 0.296. Which of the following is the correct conclusion for this test of the hypotheses H Pp-Pp=0 and H, Po-Pp 0.05. There is sufficient evidence that the true proportion of times a dime will land tails up is significantly less than the penny. O The student should reject the null hypothesis since 0.296 > 0.05. There is insufficient…
Avicenna, an insurance company, offers five-year commercial property insurance policies to small businesses. If the holder of one of these policies experiences property damage in the next five years, the company must pay out $23,600 to the policy holder. Executives at Avicenna are considering offering these policies for $791 each. Suppose that for each holder of a policy there is a 3% chance they will experience property damage in the next five years and a 97% chance they will not. (If necessary, consult a list of formulas.) If the executives at Avicenna know that they will sell many of these policies, should they expect to make or lose money from offering them? How much? To answer, take into account the price of the policy and the expected value of the amount paid out to the holder. O Avicenna can expect to make money from offering these policies. In the long run, they should expect to make dollars on each policy sold. O Avicenna can expect to lose money from offering these policies.…
Avicenna, an insurance company, offers five-year commercial property insurance policies to small businesses. If the holder of one of these policies experiences property damage in the next five years, the company must pay out $26,500 to the policy holder. Executives at Avicenna are considering offering these policies for $497 each. Suppose that for each holder of a policy there is a 2% chance they will experience property damage in the next five years and a 98% chance they will not.(If necessary, consult a list of formulas.) If the executives at Avicenna know that they will sell many of these policies, should they expect to make or lose money from offering them? How much? To answer, take into account the price of the policy and the expected value of the amount paid out to the holder. Avicenna can expect to make money from offering these policies. In the long run, they should expect to makedollars on each policy sold. Avicenna can…
Alice has accumulated $⁢260,557 in savings and wishes to invest this money sensibly. The types of investments and their corresponding percentages, recommended by a financial advisor, are shown in the following circle graph. Recommended Categories of Investment: stocks 13.73% mutual funds 51% real estate 10% annuities10% bonds 15.27% Find the amount of money that Alice should invest in stocks, mutual funds, real estate, annuities, and bonds. Round your answer to the nearest hundredth, if necessary.
With the rise of online shopping and the incoming 11.11 sale of Lazada and Shopee, you also set up a promotion in your online store as follows. With any purchase worth of Php1000 or more, the customer gets the chance to play once the spin-the-wheel as shown below. If a number 1 comes up, the customer wins Php500. If the number 2 comes up, the customer wins Php250; and if the number 3 or 4 comes up, the customer wins a discount coupon. Find the following probabilities.a. The customer wins Php500b. The customer gets a discount couponc. The customer wins money
A driver’s age has something to do with his or her chance of getting into a fatal car crash. The bar graph shows the number of fatal vehicle crashes per 100 million miles driven for drivers of various age groups. For example, 25-year-old drivers are involved in 4.1 fatal crashes per 100 million miles driven. Thus, when a group of 25-year-old Americans have driven a total of 100 million miles, approximately 4 have been in accidents in which someone died. The number of fatal vehicle crashes per 100 million miles, y, for drivers of age x can be modeled by the formula : y = 0.013x2 - 1.19x + 28.24. Use the formula above and the bar graph at the bottom of the previous page to solve, What age groups are expected to be involved in 10 fatal crashes per 100 million miles driven? How well does the formula model the trend in the actual data shown by the bar graph?
The National Highway Association is studying the relationship between the number of bidders on a highway project and the winning (lowest) bid for the project. Of particular interest is whether the number of bidders increases or decreases the amount of the winning bid. Bidders Price 9.0 5.1 9.0 8.0 3.0 9.7 10.0 7.8 5.0 7.7 10.0 5.5 7.0 8.3 11.0 5.5 6.0 10.3 6.0 8.0 4.0 8.8 7.0 9.4 7.0 8.6 7.0 8.1 6.0 7.8 GIVEN: correlation coefficient: - 0.7064 Slope: -0.4667 Coefficient of determination: 49.90% regression equation: ŷ= 11.2360 + (-4467)x FIND: Estimate the winning bid if there were seven bidders. Winning bid cost _________ millions. Explain. Compute the 95% prediction interval for a winning bid if there are seven bidders. [ _______________ , _______________ ] (Explain).

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