What is the cost of acquiring the land for an area

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Reference no: EM13226514

Your task as an engineer working for this real estate company is to first select a site for the housing venture. You are given that this area in Queens is prone to earthquakes due to seismic faults. The mean detection rate for tremors is 2 per sq.km, and XR represents the random variable of the number of tremors in a circular area with a radius R. If the unit cost of land here is $50 per sq. feet, what is the cost of acquiring the land for an area that has least risk of earthquakes? Risk is defined here as P(XR < 1) = 0.99.

Reference no: EM13226514

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