Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Statistics and Probability Expert

Crain's Christmas Trees is trying to decide if they should plant a new variety of trees. The yield for the new tree is assumed to be uniformly distributed between 500 and 2000 per year by the time the tree reaches maturity. They will be able to sell everything that is produced. However, the revenue per mature tree is assumed to follow the discrete distribution in Figure 1 of the Formula Sheet. The fixed cost to grow the trees is $8,000. The variable cost per tree that reaches maturity and is sold is $35. The profit will be determined using the following equation where P = profit, Y = yield, VC = variable cost per mature tree, FC = fixed cost, and R = revenue per mature tree. P = [Y*(R-VC)]-FC

Using the random numbers 69, 32, 95, and 57 to determine four possible yields for the new tree and using the random numbers 36, 74, 88 and 16 to determine four possible revenues per mature tree for the new tree, simulate four profit scenarios for the new tree.

Based on this small sample, what is the average profit Crain's Christmas Trees will make on the new tree variety per year?

Based on this sample, what is the probability that their profit will be less than $40,000?

What is a state of nature?

Answer

A. Possible outcomes for a chance event that affects the payoff of the decision.
B. The difference between the payoff of the best decision given that you know which state of nature will occur and the payoff of the decision that was made.
C. It is never mutually exclusive or collectively exhaustive.
D. Possible decision options for the decision maker.

What is the maximax approach (also called the optimistic approach) to decision making?

Answer

A. It is find outd using the probabilities of each state of nature occurring.
B. It is the selection of the decision alternative with the largest of all the smallest possible payoff amounts.
C. It is the selection of the decision alternative with the largest of all the largest possible payoff amounts.
D. It is the selection of the decision alternative with the smallest of all the largest regrets.

When using the formula Sumproduct in Excel for values (1, 2, 3, 4) and (2, 2, 4, 4) the result would be...

Answer

A. 102
B. 24
C. 88
D. 34

Statistics and Probability, Statistics

  • Category:- Statistics and Probability
  • Reference No.:- M998672

Have any Question? 


Related Questions in Statistics and Probability

What are impacts that flexible work schedules can have on a

What are impacts that flexible work schedules can have on a employee's productivity?

Perform a conversion to compare costs between the two

Perform a conversion to compare costs between the two programs below, to find out which is the more expensive program. Program A: estimated cost in constant FY13 dollars: $16M Program B: estimated cost in constant FY19 d ...

A highway rest area contains a vending machine that

A highway rest area contains a vending machine that dispenses cups of coffee. The amount of coffee that the machine provides when a purchase is made approximately follows a uniform distribution between 200 and 250 ml. (a ...

Doctoral assistant ships of phd students 50 have paid

Doctoral assistant ships of Ph.D students 50% have paid assistant ships. a random sample of n=200 students is chosen.. based on this sample and using the properties of the binomial distribution, what is the approximate s ...

A population has a mean of 150 and a standard deviation of

"A population has a mean of 150 and a standard deviation of 21. If a random sample of 49 is taken, what is the probability that the sample mean is between 152.5 and 157.5 using z scores?"

It has been a bad day for the stock market and you have

It has been a bad day for the stock market and you have heard that only 30% of all stocks gained value. Suppose you have a portfolio of 10 securities and assume a binomial distribution for the number of your stocks that ...

A travel analyst claims that the mean room rates at a

A travel analyst claims that the mean room rates at a three-star hotel in Chicago is greater than $152. In a random sample of 36 three-star hotel rooms in Chicago, the mean room rate is $165 with a standard deviation of ...

Please let me know what are the steps involved in computing

Please let me know what are the steps involved in computing the future value when you have multiple cash flows.

Breeding records reveal that 1 out of every 8 puppies of a

Breeding records reveal that 1 out of every 8 puppies of a certain Welsh Corgi female are runts. Since these puppies can't be sold for full price, we wish to examine the frequency with which this condition is likely to o ...

Calculating project ocfsummer time inc is considering a new

Calculating Project OCF. Summer Time, Inc. is considering a new 3-year project that requires an initial fixed asset investment of 3.9 million. The fixed asset will be depreciated straight line to zero over its three-year ...

  • 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

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As