(Answered) Question james is trying to decide which of two sales

Statistics

Question: James is trying to decide which of two sales opportunities to take.

- In the first, he makes three independent calls. Payoffs are $310, $380, and $350, with respective probabilities of 0.35, 0.41, and 0.57.

- In the second, he makes eight independent calls, with probability of success on each call p = 0:57. He realizes $100 profit on each successful sale.

- Let X be the net profit on the first alternative and Y be the net gain on the second. Assume the pair {X; Y} is independent.

- Which alternative offers the maximum possible gain?

- What is the probability the second exceeds the first_ i.e., what is P (Y > X)?

- Compare probabilities in the two schemes that total sales are at least $600, $700, $750.

View complete question

Statistics and Probability, Statistics

Category:- Statistics and Probability
Reference No.:- M92482828
Price:- $15

Verified Expert

Priced at $30 Now at $15, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Statistics and Probability

An oil company determines it costs 25000 to sink a test

An oil company determines it costs $25,000 to sink a test well, an oil hit yields a net revenue of $475,000($500,000 gross-$25,000costs), and a natural gas hit yields $125,000 net revenue ($150,000 gross-$25,000 costs). ...

1 according to the latest poll 750 adult respondents

1. According to the latest poll, 750 adult respondents believe in global warming. Construct a 95% confidence interval estimate of the proportion of adults who believe in global warming. Round your lower bound and upper b ...

Calculate cash inflow or outflow from operating activities

Calculate cash inflow or outflow from operating activities given the following information: Net loss - $12,000; depreciation expense $3,000; increase in AR $1,250; decrease in inventory $900; increase in AP $760.

A financial planning licensee striving for excellence in

"A Financial Planning Licensee striving for excellence in their fiduciary duty has decided to set a maximum limit of gearing for all client financial plans they construct." Comment on the merit of taking such an approach ...

Help me study by answering this question a stock is just

Help me study by answering this question. A stock is just paid a dividend of $0.91 and is growing at a constant rate of 10 percent per year. If the required rate of return is 15 percent, what is the stock's expected pric ...

A foreign trader at the banks tx desk calls to inform you

A Foreign trader at the bank's TX desk calls to inform you that the company TD Bank is quoting $1.20/€1, and Bank of America is offering $1.40/£1. The trader also noticed thatCredit Z is also making the market in pound ...

Question 1 the us census bureau needs to estimate the

Question 1. The U.S. Census Bureau needs to estimate the median income of females in the U.S. They collect incomes from 3500 females. Choose the best answer. Justify for full credit. (a) Which of the followings is the va ...

Explain the similarities and differences between bagging

Explain the similarities and differences between "bagging" and "boosting" in predictive analytics.

1 if there are 150 values in a data set how many classes

1) If there are 150 values in a data set, how many classes should be created for a frequency histogram? A. 5 B. 6 C. 7 D. 8 E. 9 2) . If x is a binomial random variable where n = 100 and p = 0.2, find the probability th ...

According to a january 2013 survey by the pew research

According to a January 2013 survey by the Pew Research Center, the percentage of Americans who trust the government in Washington has decreased steadily since Bill Clinton left office.6 Today, approximately 30% of Americ ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Statistics and Probability Expert