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A light bulb manufacturer introduces a new product. The firm believes that there is a(n) 0.87 percent of the bulbs functioning as advertised. The firm's engineering department tests a random sample of bulbs. In the past, testing returned a positive result 0.89 percent of the time when bulbs actually functioned properly (as advertised). Further, if the bulbs failed to work as advertised, testing returned a negative result 0.94 percent of the time.
If the bulb works as advertised, the firm will earn $3.4 in profit. If the fail to work as advertised, the firm will lose $1. Calculate the expected value of the bulb given a positive test result. Round your answer to two decimal places.
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College sophomore Suzy Smart works part-time in the Handi Mart convenience store near campus. The manager at Handi Mart requires that each clerk arrive fifteen minutes prior to the start of the shift so that the clerk going off duty can review ..
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