Equivalent annual construction cost per mile

Assignment Help Business Economics

Reference no: EM131809575

A road between Fairbanks and Nome, Alaska, will have a most likely construction cost of $4 million per mile. Doubling this cost is considered to have a probability of 30%, and cutting it by 25% is considered to have a probability of 10%. The state's interest rate is 8%, and the road should last 40 years. What is the probability distribution of the equivalent annual construction cost per mile?

Reference no: EM131809575

Questions Cloud

Find the project probability distribution : Historical data suggest that the probability of cool, damp weather is 30% and that of dry, hot weather is 20%. Find the project's probability distribution.

Why the coin does not land heads both times : Let O = { 0, 1, 2} be the outcome space in a model for tossing a coin twice and observing the total number of heads.

Prepare journal entries for the following given transactions : Prepare journal entries for the following transactions - Purchased $50,000 of direct materials on account. Direct Materials costing $45,000 were used for jobs

Responsibility to improve the execution focus : You have been entrusted with a responsibility to improve the execution focus of PMS in your organization.

Equivalent annual construction cost per mile : The state's interest rate is 8%, and the road should last 40 years. What is the probability distribution of the equivalent annual construction cost per mile?

Describe the landscape in which the problem exists : Describe the landscape in which the problem exists, including the key stakeholders in the issue and the political climate.

Define the verbal descriptions for the events : Think of the set O = { HHH, HHT, HTH, HTT, THH, THT, TTH, TTT} outcome space for three tosses of a coin. For example, the subset {HHH, TTT}.

Probabilities of the various outcomes : He will do so if he thinks he can get his money back in one year. He believes the probabilities of the various outcomes at the end of one year are as follows

Commonly encountered and is consequence : A contract WBS is. Detail complexity, in particular, is commonly encountered and is a consequence of:

User Account

All Pages