a) A dealer decides to sell an antique automobile by means of an English auction with a reservation price of £900. There are two bidders. The dealer believes that there are only three possible values, £7,200, £3,600, and £900, that each bidder's willingness to pay might take. Each bidder has a probability of 1/3 of having each of these willingnesses to pay, and the probabilities for each of the two bidders are independent of the other's valuation. Assuming that the two bidders bid rationally and do not collude, the dealer's expected revenue from selling the car is at least

Christine Wong has asked Dave and Mike to help her move into a new apartment on Sunday morning. She has asked them both, in case one of them does not show up. From past experience, Christine knows that there is a 36% chance that Dave will not show up and a 26% chance that Mike will not show up. Dave and Mike do not know each other and their decisions can be assumed to be independent. a. What is the probability that both Dave and Mike will show up? (Round your answer to 2 decimal places.) Probability b. What is the probability that at least one of them will show up? (Round your answer to 2 decimal places.) Probability c. What is the probability that neither Dave nor Mike will show up? (Round your answer to 2 decimal places.) Probability

Suppose that Trendy Inc. products a style of a seasonal business suit, Sit-T-Slicker, which has a cost of $500 per unit. The demand during the season for Sit-T-Slicker is generally unknown and could be either: 200, 500, 800, 1100, and 1500 units with equal probabilities. Trendy sells the Sit-T-Slicker suit for $900 per unit during its three-month season, and for $300 per unit when sold after that time. Given the above data, what is the optimal order quantity for the Sit-T-Slicker?  What is expected profit? Suppose the probabilities in part a change to 0.05, 0.25, 0.40, 0.25, 0.05 for demand levels 200, 500, 800, 1100, 1500, respectively.  What is the optimal order quantity and expected profit in this case? How would better information regarding the demand for the Sit-T-Slicker suit change the data provided in this problem?  How would this information affect the answers to part a?  Explain.

The proprietor of Midland Construction Company has to decide between two projects. He estimates that the first project will yield a profit of $160,000 with a probability of 0.7 or a profit of $120,000 with a probability of 0.3; the second project will yield a profit of $220,000 with a probability of 0.6 or a profit of $70,000 with a probability of 0.4.Find the expected profit for each project. first project $ second project      $ Which project should the proprietor choose if he wants to maximize his expected profit? first project second project

Brian, a landscape architect, submitted a bid on each of three home landscaping projects. He estimates that the probabilities of winning the bid on Project A, Project B, and Project C are 0.7, 0.5, and 0.2, respectively. Assume that the probability of winning a bid on one of the three projects is independent of winning or losing the bids on the other two projects. Find the probability that Brian will experience the following. (a) Win all three of the bids (b) Win exactly two of the bids (c) Win exactly one bid

In a certain community, eight percent of all adults over age 50 have diabetes. If a health service in this community correctly diagnosis 95% of all persons with diabetes as having the disease and incorrectly diagnoses ten percent of all persons without diabetes as having the disease, find the probabilities that: The health service will diagnose an adult over age 50 as having diabetes. A person over 50 diagnosed by the health service as having diabetes actually has the disease.

A student takes a multiple-choice quiz with 5 questions, each with four possible answers and only oneof them is correct. A passing grade is 60% or better (i.e., answering at least 3 of 5 questions correctly).Suppose that the student was unable to find time to study for the exam and just guesses at eachquestion.  Find the probabilities for the two events below.i. the student gets exactly 3 questions correct.ii. the student passes the exam

1. The picture's river has floodgates at points A, B, C and D. The probabilities of each of the floodgates being open (a requirement for water to pass through) are the following: A: 94%, B : 96%, C: 91%, D: 97% The probabilities of the floodgates being open are independent. What is the probability that the water from the leftmost point in the picture will reach the sea on the right? C D B THE SEAL