Decision making and state of nature

Assignment Help Basic Statistics

Reference no: EM13101908

Allen Abbott has a wide-curving, uphill driveway leading to his garage. When ther is a heavy snow, Allen hires a local carpenter, who shovels snow on the side in teh winter, to shovel his driveway. The snow shoveler charges charges $30 to shovel the driveway. Following is a probability distribution of the number of heavy snows each winter

Heavy Snows Probability

1 .13

2 .18

3 .26

4 .23

5 .10

6 .07

7 .03

1.00

Allen is considering purchasing a new self-propelled snowblower for $625. that would allow him, his wife, or his children to clear the driveway after a snow. Discuss what you think allen's decision should be and why?

Reference no: EM13101908

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