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Rudik [331]
3 years ago
13

Refer to the following formula for expected payoff:

Mathematics
1 answer:
emmasim [6.3K]3 years ago
4 0

Answer:

Step-by-step explanation:

From the given information:

The price reduction = 98% = 0.98

Then \  the \  expected  \ payoff  \ =  \[(probability \  of \ matching \ price \  reduction  \ *  \ size \ of \  loss  \ from \  price \  cuts \ ) \  +  \ ( \ probability \  o f \  rivals\  not \  matching  \ * \  gain \ from \  price \  cuts  )]

where;

P(rival not matching ) = (100 - 98)% = 2%

P(rival not matching ) = 0.02

The expected payoff = [(0.98 * -800) + (0.02*50000)]

The expected payoff = [( -784+ 1000)]

The expected payoff = 216

(b) Probability of rivals reducing price = 5%

= 5/100

= 0.05

∴

Probability of rivals reducing price = 1 - 0.05 = 0.95

The expected payoff = (0.05 * -6000) + (0.95 *0)

The expected payoff = -300 + 0

The expected payoff = -300

(c) Yes.

Based on answers (a) and (b), the firm should cut the price.

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The chamber of commerce of a Florida Gulf Coast community advertises that area residential property is available at a mean cost
Alja [10]

Answer:

a) In the step-by-step explanation.

b)  The null and alternative hypothesis are:

H_0: \mu=125000\\\\H_a:\mu> 125000

c) P-value = 0.015

d) The conclusion, at a level of significance of 0.05, is that there is enough evidence to support the claim that that area residential property is available at a mean cost significantly higher than $125,000 per lot.

e) The claim of the chamber of commerce is false. We have statistical evidence against that claim and we can conclude that the mean prices are significantly higher than $125,000.

Step-by-step explanation:

This is a hypothesis test for the population mean.

The claim, expressed in the alternative hypothesis, is that area residential property is available at a mean cost significantly higher than $125,000 per lot.

Then, the null and alternative hypothesis are:

H_0: \mu=125000\\\\H_a:\mu> 125000

The significance level is 0.05.

The sample has a size n=32.

The sample mean is M=130000.

As the standard deviation of the population is not known, we estimate it with the sample standard deviation, that has a value of s=12500.

The estimated standard error of the mean is computed using the formula:

s_M=\dfrac{s}{\sqrt{n}}=\dfrac{12500}{\sqrt{32}}=2209.71

Then, we can calculate the t-statistic as:

t=\dfrac{M-\mu}{s/\sqrt{n}}=\dfrac{130000-125000}{2209.71}=\dfrac{5000}{2209.71}=2.26

The degrees of freedom for this sample size are:

df=n-1=32-1=31

This test is a right-tailed test, with 31 degrees of freedom and t=2.26, so the P-value for this test is calculated as (using a t-table):

\text{P-value}=P(t>2.26)=0.015

As the P-value (0.015) is smaller than the significance level (0.05), the effect is  significant.

The null hypothesis is rejected.

There is enough evidence to support the claim that that area residential property is available at a mean cost significantly higher than $125,000 per lot.

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Is there an answer to this equation such as 2x-3+8=4?
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Zepler [3.9K]

Answer:

C. 0

Step-by-step explanation:

–4j^2 + 3j – 28 = 0

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                                                   =0  we have 1 real solutions

                                                   <0 we have 2 imaginary solutions

a = -4, b =3  c = -28

b^2 -4ac

(3)^2 - 4(-4)*(-28)

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3 years ago
Help find the slope of each line
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Answer:

1. The slope of the graph is 3/1 or 3

2. The slope of the graph is 3/4

3. The slope of the points is 2

4. The slope of the points is Undefined

5. The slope of the graph is 1

6. The slope of the points is -1/4

Step-by-step explanation:

To find the slope of the graph you use rise over run

To find the slope of the points you use y2-y1 over x2-x1

Hope this is very helpful!!

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