A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
10th Edition
ISBN: 9780134753119
Author: Sheldon Ross
Publisher: PEARSON
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business graduate wants to get a job in any one
of the top 10 accounting firms. Applying to
any of these companies requires a lot of effort
and paperwork and is therefore costly. She estimates
the cost of applying to each of the 10 companies and
the probability of getting a job offer there. These data
are tabulated below. The tabulation is in the decreas-
ing order of cost.
A
4. If she wants to be at least 75% confident of
getting at least one offer, to which companies
should she apply to minimize the total cost?
(This is a trial-and-error problem.)
5. If she is willing to spend $1,500, to which
companies should she apply to maximize her
chances of getting at least one job? (This is a
trial-and-error problem.)
Company
2
5
7
8
10
Cost
$870
$600
$540
$500
$400
$320
$300
$230
$200
$170
Probability
0.38
0.35
0.28
0.20
0.18
0.18
0.17
0.14
0.14
0.08
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Transcribed Image Text:business graduate wants to get a job in any one of the top 10 accounting firms. Applying to any of these companies requires a lot of effort and paperwork and is therefore costly. She estimates the cost of applying to each of the 10 companies and the probability of getting a job offer there. These data are tabulated below. The tabulation is in the decreas- ing order of cost. A 4. If she wants to be at least 75% confident of getting at least one offer, to which companies should she apply to minimize the total cost? (This is a trial-and-error problem.) 5. If she is willing to spend $1,500, to which companies should she apply to maximize her chances of getting at least one job? (This is a trial-and-error problem.) Company 2 5 7 8 10 Cost $870 $600 $540 $500 $400 $320 $300 $230 $200 $170 Probability 0.38 0.35 0.28 0.20 0.18 0.18 0.17 0.14 0.14 0.08
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