Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Statistics and Probability Expert

John Carpenter is considering investing some money he won at a game show. The following payoff table gives the profits that would be realized during the next year for each of three investment alternatives John is considering:

State of Nature
Decision Alternative Good Economy Poor Economy
Stock market 80,000 -20,000
Bonds 30,000 20,000
CDs 23,000 23,000
Probability 0.5 0.5

a. What decision would maximize expected profits?

b. What is the maximum amount that should be paid for a perfect forecast of the economy?

Statistics and Probability, Statistics

  • Category:- Statistics and Probability
  • Reference No.:- M943697

Have any Question? 


Related Questions in Statistics and Probability

Satistics project come up with a survey pick a population

Statistics Project: Come up with a survey: Pick a population Come up with 4 variablesà 2 Quantitative & 2 Qualitative (make up numbers) Pick 50 data points for each variable, make a table on excel, use a scatter plot gra ...

1 what are some ways in which scientists get ideas for

1. What are some ways in which scientists get ideas for their research? 2. Why can theories not be proved or disproved by research? 3. Given that proof and disproof are impossible in science, how does scientific knowledg ...

How does the competitive success of ords kangaroo rat

How does the competitive success of Ord's kangaroo rat change in the absence of coyotes? Propose one possible cause for the decline in rodent diversity in the control areas after treatment begins. What is the impact of c ...

Data interpretationresearch reportyour taskwrite a report

Data Interpretation Research Report Your task: Write a report on the statistical relationship that you find between the stock price of the company that you have been assigned and the following three variables: the FTSE, ...

Roger reports i ascribe probability 03 to the philadelphia

Roger reports: I ascribe probability 0.3 to "the Philadelphia Phillies will win the World Series next year, Chris ascribes probability 0.4 to their winning the World Series and to me ascribing probability 0.4 that they w ...

Getting ready for a re-test for applied managerial

Getting ready for a re-test for Applied Managerial Statistics and will need some assistance. It is 24 questions and I have 3 hours once I access it. This should be an advanced question.

A company manufactuirng compter chip finds that 8 of all

A company manufactuirng compter chip finds that 8% of all chips manufactured are defective. Management is concerned that high employee turnover is partially responsible for the high defect rate. In an effort to decrease ...

A professor has learned that four students in her class of

A professor has learned that four students in her class of 18 will cheat on the exam. She decides to focus her attention on seven randomly chosen students during the exam. a. What is the probability that she finds at lea ...

Under what conditions is a grouped frequency distribution

Under what conditions is a grouped frequency distribution more useful as a means of describing a set of scores than a simple frequency distribution? Why do researchers often add relative frequencies to their tables?

Consider the approximately normal population of heights of

Consider the approximately normal population of heights of male college students with mean μ = 68 inches and standard deviation of σ = 4.6 inches. A random sample of 16 heights is obtained. (a) Describe the distribution ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro