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erastovalidia [21]
3 years ago
12

A rock concert promoter has scheduled an outdoor concert on July 4th. If it does not rain, the promoter will make $30,000. If it

does rain, the promoter will lose $15,000 in guarantees made to the band and other expenses. The probability of rain on the 4th is 0.4.
(a) What is the promoter's expected profit? Is the expected profit a reasonable decision criterion? (Round your answers to 1 decimal place.)
(b) How much should an insurance company charge to insure the promoter's full losses?
Mathematics
1 answer:
Nastasia [14]3 years ago
8 0

Answer:

(a) $12,000. It is reasonable since profit is positive

(b) $6,000

Step-by-step explanation:

(a) The promoter's expected profit is given by the product of his potential earnings by the probability that it does not rain, minus the product of his potential losses by the probability of rain:

E(X) = \$30,000*(1-0.4)-\$15,000 *0.4\\E(X) = \$12,000

The promoter's expected profit is $12,000, it is a reasonable criterion since profit is positive.

(b) An insurance company should charge the product of the full potential losses by the probability of rain:

I = \$15,000*0.4\\I=\$6,000

An insurance company should charge $6,000.

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Is f(-x) = -f(x)?
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3 years ago
Steve and Michele and celebrating their 30th anniversary by having a reception at the local reception hall. they have a budget o
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$3,500 budget minus $50 clean up fee equals $3,450.
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3 years ago
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Use the Third Angles Theorem for  two figures are congruent.

When two of a triangle's angles match up with two of another triangle's angles, the third angle must likewise match up.

If at least two sides and one angle of two triangles are similar, then the triangles are congruent.

Learn more about congruent

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4 0
11 months ago
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Answer:

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Step-by-step explanation:

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Let number of 14 Oz cup be y

Let number of 20 Oz cube be z

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z=6

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