Analyse resources and accountability, Basic Statistics

Assignment Help:

The unfortunately-named (and fictitious) town of Avalanche, Utah maintains a vibrant and growing ski industry.  As Director of Avalanche's search-and-rescue operations, you are always interested in the latest technologies that can help you find skiers and others who find misfortune.  Most recently, you have been exploring the use of a Snow Sonogram Machine (SSM), which allows you to scan very deep sections of snow for evidence of buried bodies.

The SSM is a good, but not perfect, machine.  If someone is buried in a pile of snow, the SSM will correctly identify the presence of person in that pile 90% of the time.  If someone is buried, the SSM will say that the buried person is not actually there 10% of the time.  If someone is not buried, the SSM will correctly say that there is no one buried 70% of the time, but incorrectly say that there is someone buried 30% of the time.

Sure enough, after a recent small avalanche, a girl has gone missing, and you suspect she might be buried in a small section of one nearby mountain.  Specifically, there is a 90% chance she is buried and 10% chance she is not.

Assume that if she is buried, the only way you can find her is to dig, and assume that you will definitely find her if you dig.  If she is not buried and you dig, you have no chance of finding her.  If she is not buried and you choose not to dig (that is, you put your resources towards other search processes), you have a 10% chance of finding her.

For simplicity's sake, assume that - if you find her - you find her alive.    

Now, estimating costs and benefits can be a tricky and emotional business when talking about human lives, but you do live in the real world of limited resources and accountability.  As such, you rely on the significant body of literature on the value of human lives, which estimates the value of finding the girl at $10 million.  If you do not find her, the benefit is $0. 

The other relevant costs and benefits are as follows:

  • If you choose to use the SSM on the relevant section of mountain, you can rent it for $100,000
  • Digging in the section of mountain (regardless of whether the SSM is used) costs $150,000
  • Not digging (again, regardless of whether the SSM is used) costs $50,000, since you will engage in other, but less costly, search processes


Related Discussions:- Analyse resources and accountability

Financial accounting about Collison (1998:7), if "profit" maximisation is b...

if "profit" maximisation is biased towards maximising the interest of only one stakeholder group, would you expect that over time there will be less emphasis on profit and more emp

Sequence networks , A group of identical synchronous motors is connected th...

A group of identical synchronous motors is connected through a transformer to a 4.16-kV bus at a remote location from the generating plants of a power system. The motors are rated

Study guide, Answers & examples of accounting for the follow on the file be...

Answers & examples of accounting for the follow on the file being sent to you.

one-way anova and hypothesis , Suppose we wanted to compare the somatic co...

Suppose we wanted to compare the somatic complaints (as measured on a scale known as the Physical Symptom Survey or PSS) of three groups of people; nonsmokers, smokers, and people

Ogive, When we use upper or lower class boundaries during calculation of og...

When we use upper or lower class boundaries during calculation of ogive graph?

depreciation during the financial year, Depreciation during the financial ...

Depreciation during the financial year  The Resources which are bought during the economical season and its determined that the Depreciation will be incurred on them @ 10% PA it

When are expenses credited, When are expenses credited? While common jo...

When are expenses credited? While common journal cost records are typically debited and have debit account balances, there are times when the cost records are acknowledged.

Penny''s game, (Penney’s game) Independent flips of a biased coin that land...

(Penney’s game) Independent flips of a biased coin that lands on heads with probability 0.7 are made. Each of two players, A and B, had chosen one out of the eight triplet: {HHH, H

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd