Find the expected value of the bonus

Reference no: EM131001310

1. A manager of a certain office is offered a bonus each month if the total expenses are under 1000. The bonus is half the difference between 1000 and the expenses. So, for example, if expenses were 800, the bonus would be 100. Find the expected value of the bonus in each of the following cases.

(a) Expenses are exponentially distributed with a mean of 2000.

(b) Expenses are uniformly distributed on the interval [0, 4000].

Reference no: EM131001310

Questions Cloud

Prepare journal entries for samson wholesale beverage : Prepare journal entries for Samson Wholesale Beverage for the transfer of accounts receivable on April 30 assuming the sale criteria are met.

Diameter measurements with an average : A manufacturer of "low precision" 10 mm diameter ball bearings periodically takes samples and measures them to con?rm that the manu- facturing process is still on target. A random sample of 20 ball bearings resulted in diameter measurements with a..

Describe the methods used to collect the data : Describe the methods used to collect the data and perform the study (using terminology appropriate for describing experimental research methods

Appropriate statistical description of data sets : From an appropriate statistical description of these data sets, comment on the indicated changes in the population in the two decades between 1960 and 1980.

Find the expected value of the bonus : The bonus is half the difference between 1000 and the expenses. So, for example, if expenses were 800, the bonus would be 100. Find the expected value of the bonus in each of the given cases.

Describe the forms of business organizations : Include a cover page containing the title of the assignment, the student's name, the professor's name, the course title, and the date. The cover page is not included in the required page length.

Prepare the cash and accounts receivable lines : At December 31, 2011, Walken had a balance of €40,000 of cash at M&V Bank and an overdraft of (€5000) at First National Bank. (That cash balance includes any effects on cash of the other transactions described in this problem.)

Distinctive characteristics and postulate potential : Provide an appropriate statistical description and summary of this data set; comment on any distinctive characteristics and postulate potential explanations for your observation.

What is the maximum voltage across the circuit : For a particular RLC series circuit, the capacitive reactance is 3.35Ω, the inductive reactance is 48.1 Ω, and the maximum voltage across the 76.3Ω resistor is 22.7 V. What is the maximum voltage across the circuit?

User Account

All Pages