If the project is finished within 26 weeks of its start, the project manager will receive a bonus of $1,000; and if the project
is finished within 27 weeks of its start, the bonus will be $500. Find the probability of each bonus. (Round Mean, Standard Deviation, z-value to 2 decimal places and Probability to 4 decimal places.) Path Mean Std. Dev. a-d-e-h 24.33 1.35 a-f-g 15.50 1.26 b-i-j-k 14.83 1.02 c-m-n-o 26.17 1.66 Probability ($1,000) .4099 Probability ($500)
1 answer:
You might be interested in
Answer:
E = -2. The demand is going down by 2% per 1% increase in price at that price level.
The price that gives a maximum revenue is $22.5. The maximum revenue is $9112.5
Step-by-step explanation:
The overall demand formula: Q = aP + b
Q = 990 - 22P
<u>Demand elasticity:</u>
At P = $30, the Q = 990 - 22×30 = 330. a = = -22
The formula for demand elasticity: E = ×
Demand elasticity at $30: E = -22 × = -2
So, The demand will be going down by 2% if 1% increase in price.
<u>Revenue:</u>
R = P×Q = P×(990 - 22P) = -22P² - 990P
R' = -44P - 990. The revenue is maximum when R' = 0
⇔0 = -44P - 990 ⇔ P = $22.5
At the P = $22.5, the Q = 990 - 22×22.5 = 495.
The maximum revenue = $22.5×495 = $11,137.5
I am not sure is you are supposed to solve or rewrite but for solving its this picture, tell me if its rewriting the problem and ill give you that as well!
