What is probability distribution of equivalent construction

Reference no: EM13218640

a road between fairbanks and Nome, alaska, will have a most likely construction 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 states interst rate is 8% and the road should last 40 years. what is the probability distribution of the equivalent annual construction cost per mile? calculate the expected value of the equivalent annyual construction cost per mile

Reference no: EM13218640

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