The probability that demand is greater than 1800 gallons over a 2 hour period is : 0.5
<u>Given data :</u>
Mean value of gasoline per hour = 875 gallons
Standard deviation = 55 gallons
<h3>Determine the probability of demand being greater than 1800 gallons over 2 hours </h3>
Demand for gas in 1 hour = X₁
Demand for gas in 2 hours = X₁ + X₂
Therefore ; ( X₁ + X₂) ~ N ( u₁+u₂, sd₁² + sd₂² )
In order to calculate probabilities for normals apply the equation below
Z = ( X- u ) / sd
where : u = 1800, sd = √ ( 55² + 55² ) = 77.78
using the z-table
P( Y > 1800) = P( Z > ( 1800 - 1800 ) / 77.78)
= P( Z>0 ) = 0.5
Hence we can conclude that The probability that demand is greater than 1800 gallons over a 2 hour period is : 0.5.
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Answer:
Stewart will probably have to accept a higher level of risk
.
Explanation:
Hence, a large-risk investment is one in which the risks of failure, or of losing some or all of the asset, are greater than the average.
- These opportunities often offer investors the ability for greater returns in exchange for embracing the degree of risk associated with that.
- In saving account he gets 3% rate of return but also gets a lower rate of risk and does not earn much.
If he invests his money in higher-risk fields like shares, he may get a higher profit.
Answer:
c. The contribution margin per gallon of throughput for each product
Explanation:
contribution margin per gallon = Revenue per gallon - variable cost per gallon.
Contribution margin would enable the company to know the amount each product earns in excess after variable cost has been subtracted from revenue.
the product with the highest contribution margin should be considered.
The correct option is C
<u>Explanation:</u>
The annual profit increase = $400,000
<u>The following formula is to be used in order to calculate the total profit enhancement in five years
</u>
The total profit increase in 5 years = 400000 multiply with 5 = $2,000,000 = $2 million
, As compared to cost of $1 million.
Thus, The correct option is answer (C) To take on the new salon because the expected marginal benefit ($2 million over 5-years) is greater than the estimated marginal cost ($1 million).
Answer:
2) assumption not made
Explanation:
The original statement does not include any assumption about what the companies are doing about this issue, it just proposes an idea of fair compensation.
maybe whoever wrote this statement believes that very few companies or none at all actually compensate homeowners for a reduction in the market value of their properties, but it doesn't state it. It is also possible that the statement assumes that companies are paying some compensations or were paying some compensations but are not willing to continue to do it since no legislation forces them to do so. The author's position is vague and not clear with respect to what the companies are currently doing.
