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34kurt
3 years ago
7

If you draw a card with a value of three or less from a standard deck of cards, I will pay you $146. If not, you pay me $24. (Ac

es are considered the highest card in the deck.)Step 1 of 2 :Find the expected value of the proposition. Round your answer to two decimal places. Losses must be expressed as negative values.
Business
1 answer:
Rainbow [258]3 years ago
7 0

Answer: Expected value = $2.034

Explanation:

Total outcome = 52

Favorable Outcome = 8

Probability of drawing a card with a value of three or less = \frac{Favorable\ outcome}{Total\ outcome}

= \frac{8}{52}

=  \frac{2}{13}

Probability of drawing a card with a value of more than three = 1 -  \frac{2}{13}

=  \frac{11}{13}

Hence,

Expected value = 146 \times \frac{2}{13} + (-24) \times \frac{11}{13}

= 22.338 - 20.304

= $2.034

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In long-run equilibrium:
Sonja [21]

Answer:

I think the answer is C.

4 0
2 years ago
Fleet, Inc. manufactured 700 units of Product A, a new product, in 20Xl. Product Xs variable and fixed manufacturing costs per u
Ulleksa [173]

Answer:

The change in the dollar amount of inventory is $200 due to change in the inventory costing method.

Explanation:

The variable cost per unit is $6.00 while the fixed cost per unit is $2.00

Variable cost per unit = $6.00

Absorption cost pet units = $8.00

Total cost under absorption costing = Absorption cost per unit / number of units in ending inventory

Total absorption cost = $8.00 × 100 = $800

Total cost under variable cost = Variable cost per unit × number of units in ending inventory

Total variable cost = $6.00 × 100 = $600

Change in cost = Total absorption cost - Total variable cost

Change in cost = $800 - $600 = $200

3 0
2 years ago
John and Sally Claussen are considering the purchase of a hardware store from John Duggan. The Claussens anticipate that the sto
Marina CMI [18]

Answer:

Explanation:

Calculate maximum that should pay:

Compute present value of cash flows from the store, year 1 to 5 :

Annual cash flows are $70,000

Desired rate of return on investment for 1 to 5 years is 7%

Number of years is 5

Present value of cash flows generated during 1 to 5 years =

= $287,013.82

Compute present value of cash flows from the store for years 6 to 10

Annual cash flows are $70,000

Desired rate of return on investment for 6 to 10 years is 10%

Desired rate of return on investment for 1 to 5 years is 7%

Number of years is 5

Present value of cash flows generated during 6 to 10 years = annual cash flows x PVIFA (10%,5) x PVIF (7%,5)

= $70,000 x 3.79079 x 0.7130 = $189,198.33

Compute present value of cash flows from the store for years 11 o 20

Annual cash flows are $70,000

Desired rate of return on investment for 11 to 20 years is 12%

Desired rate of return on investment for 6 to 10 years is 10%

Desired rate of return on investment for 1 to 5 years is 7%

Number of years is 10

Present value of cash flows generated during 11 to 20 years = [annual cash flows x PVIFA (12%,10)] x PVIF (10%,5) x PVIF (7%,5)

= $70,000 x 5.65022 x 0.62092 x 0.7130  = $175,100.98

Calculate present value of estimated sale amount to be received for sale of store

Present value of estimted sale amount to be received = [Estimated sale amount x PVIF (12%,10)] x PVIF (10%,5) x PVIF (7%,5)

=$400,000 x 0.32197 x 0.62092 x 0.7130=

=$57,016.50

Calculate total maximum amount that should be paid

Particulars Amount ($)

Present value of cash flows during 1 to 5 years         $287,013.82

Present value of cash flows during 6 to 10 years $189,198.33

Present value of cash flows during 11 to 20 years $175,100.98

Present value of estimated sale value                  $57,016.50

Maximum amount that C should pay to JD for store $708,329.63

Therefore, Maximum amount that should be paid $708,329.63

4 0
3 years ago
What is the average life expectancy for a paraplegic?
Korolek [52]

Paraplegic is set to manifest in an individual if the person has paralysis on both of his or her lower limbs and the cause of this is likely because of an injury or spinal disease. The life expectancy of a person who has this illness is not definite because early than 18 months, there is already death within individuals who has this disease. But base on researches, its life expectancy is 18 months.

3 0
3 years ago
A construction company plans to build a certain number of apartment buildings and stores on a piece of land. This PPC shows the
Bond [772]

Answer 1) Option B) Shift to the right.

Explanation : If the amount of land available to the company increases, the PPC will shift to the right. As the graph indicates, the PPC will grow by shifting on right side as the company is acquiring more land for building purpose.

Answer 2) Option C) Remain Unchanged.

Explanation : The company realizes it cannot construct any buildings on a portion of the land because it is at risk of a cave-in.

In this case, the PPC will remain unchanged. When the company realizes that no construction can be done on the portion of land because of its hollowness the PPC will remain to be undisturbed.

5 0
3 years ago
Read 2 more answers
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