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A company is considering expansion of its current facility to meet increasing demand. If demand is high in the future, the major expansion would result in an additional profit of $800,000, but if demand is low then there would be a loss of $500,000. If demand is high, the minor expansion will result in profits of $200,000, but if demand is low then there is a loss of $100,000. The company has an option of not expanding. a. How would you advise the company? (Give a number of possible solutions under various assumptions.) b. If you found out that the probability of a high demand is .75, what would your advice be then? What is the maximum you would be willing to pay for perfect information?
Believe the consumer advocate's claim? Explain
For the daily lottery game in Illinois, participants select three numbers between 0 and 9. A number cannot be selected more than once, so a winning ticket could be, say, 307 but not 337. Purchasing one ticket allows you to select one set of num..
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Psychomotor retardation scores for a large group of manic-depressive patients were approximately normal, with a mean of 930 and a standard deviation of 130. What fraction of the patients scored: a) between 800 and 1,100? b) less than 800? ..
1.The following random sample was selected from a normal distribution: 4, 6, 3, 5, 9, 3.It would be useful to draw the normal curve to illustrate the confidence intervala.Construct a 90% confidence interval for the population mean.b.Construct a..
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When Susan and Jessica play a card game, susan wins 60% of the time. if they play 9 games, what is the probability that jessica will have won more games than susan?
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