A bag is exactly 3 3/4 pounds, it can be estimated at 4 pounds.
If Elisa, Luis, and Dwayne purchased 5 bags together, they will have an estimate of 20 pounds of bird seeds.
5 bags * 4 pounds/bag = 20 pounds
When the exercise asks to describe the likelihood of the event using the probabilities means that taking into account that the probabilities are numbers between 0 and 1, see if the events are likely or not to happen.
For a soft drink, which has a 0.80 probability is a likely event that could happen because it is greater to the middle (0.5) but is not so close to 1.
For a daily special, which has a 0.25 probability is more and unlikely event that could still happen but its not so common to.
For dessert, which has a probability of 0.5 probability is neither a likely nor unlike event because the probability is really close to the middle.
For appetizer, which has a probability of 0.06 probability is more an unlikely/impossible event because the probability is so small and close to 0 that it is not common to happen at all.
Evaluate the following function f(-2).f(x)=3x12
Answer: f(x) = 36
(a) Net present value of machine
Pm=-C+V/(1+i)^n=37000-1000/1.08^4
=-36264.97
=-36265 (rounded to nearest dollar)
Cost of machine amortized over 4 years (annualized cost)
Ac=Pm(A/P,i,n)=-36264.97(A/P,0.08,4)=-36264.97(.08*(1.08^4)/(1.08^4-1)
=-10949.15
Expected year-end cash flow = annualized return - annualized cost =>
12000=return - 10949.15
(b) Internal rate of return of machine
=return/cost - 1
=(12000-(-10949.15)/10949.15-1
=2.096-1
=1.096
=109.6%
