The Saunders Agency is planning to create ads for the whole season of a new reality show. They sell these ads to their customers throughout the season, as and when a customer requests for them subject to availability. Depending on off-screen scandals of the stars involved in the show, Saunders believes there are three possible scenarios. Scenario 1: A show star gets married to a rock star, another gets arrested for public indecency and two other stars have affairs. With this scenario the average demand for ads will be 40. Scenario 2: One of the three above mentioned incidents happen; the demand will be an average of 30. Scenario 3: None of the three situations mentioned in Scenario 1 happens, then the demand will be on average 20.
The
Trending nowThis is a popular solution!
Step by stepSolved in 3 steps
- A venture capitalist, willing to invest $1,000,000$1,000,000, has three investments to choose from. The first investment, a software company, has a 15%15% chance of returning $5,000,000$5,000,000 profit, a 25%25% chance of returning $1,000,000$1,000,000 profit, and a 60%60% chance of losing the million dollars. The second company, a hardware company, has a 10%10% chance of returning $3,000,000$3,000,000 profit, a 40%40% chance of returning $1,000,000$1,000,000 profit, and a 50%50% chance of losing the million dollars. The third company, a biotech firm, has a 15%15% chance of returning $6,000,000$6,000,000 profit, a 65%65% of no profit or loss, and a 20%20% chance of losing the million dollars. (a) Construct a PDF for each investment.Enter the exact answers as fractions or decimals.arrow_forwardIt has been observed that some persons who suffer renal failure, again suffer renal failure within one year of the first episode. This is due, in part, to damage from the first episode. The performance of a new drug designed to prevent a second episode is to be tested for its effectiveness in preventing a second episode. In order to do this two groups of people suffering a first episode are selected. There are 55 people in the first group and this group will be administered the new drug. There are 75 people in the second group and this group will be administered a placebo. After one year, 10% of the first group has a second episode and 9% of the second group has a second episode. Conduct a hypothesis test to determine, at the significance level 0.01, whether there is reason to believe that the true percentage of those in the first group who suffer a second episode is different from the true percentage of those in the second group who suffer a second episode? Select the [Alternative…arrow_forwardScenario 3. A researcher creates a new program for college students to reduce feelings of loneliness and enhance students' engagement on campus. This new program helps students to find student groups and clubs that fit their interests. She randomly assigns students to either enroll in this new program (the experimental group) or to not enroll in the program (the control group). She compares students' feelings of engagement between the two groups, and expects that engagement will be higher among the students that are in the program. What is the most appropriate test statistic to use to test the hypothesis in scenario 3? A) z-test B) z-score C) Independent samples t-Test D) Correlation Coefficient E) One-way ANOVA F) Dependent samples t-Test G) Factor Analysis H) Structural Equation Model What is the null hypothesis for scenario 3? A) H0: engagement in the experimental group ≤ engagement in the control group B) H0 : engagement in the experimental group = engagement in the control…arrow_forward
- Many states mandate tests that have to be passed in order for the students to graduate with a high school diploma. A local school superintendent believes that after-school tutoring will improve the scores of students in his district on the state's graduation test. As a trial run, a tutor agrees to work with 15 students for a month. The superintendent ask the school board to implement this after-school tutoring program if there is evidence that student scores would increase by an average of more than 20 points. Create a 95% confident level to estimate the true score increase. 25.4 23.3 17.8 21.3 14.8 28.8 22.5 23.6 32.3 15.4 23.4 27.5 18.8 19.1 20.4 a. Confidence Interval b. Conclusionarrow_forwardA basketball coach is interested in determining if shooting free throws underhand is better than shooting them using the overhead method. He has four high school teams (two boys' teams and two girls' teams, with 13 players on each team) available to take part in an experiment. He believes that the difference in shooting percentages will vary more for boys than for girls. He randomly chooses and instructs half of the boys to continue shooting free throws overhead and the rest of the boys to shoot underhand. He does the same for the girls. At the end of a six-game summer league, he compares the shooting percentages for the overhead shooting boys to the underhand shooting boys and the overhead shooting girls to the underhand shooting girls. (a) What is the advantage of using a block design for this study? O Blocking by gender will reduce the variation in the response variable by creating homogeneous groups and determining the effect of the new shooting style on the response (percentage of…arrow_forwardRazor LLC has a data warehouse that is used by several analytics groups. The data warehouse consists of a number of distinct components, including a cloud server (99.999% availability), a database management system server (99.4%), an analytics logic server (94.7%), and, of course, the network infrastructure to the cloud server, which has an availability of 99.9%. What is the overall availability of the system, expressed as a percentage with three digits of precision? For example, enter 91.223, but do not enter a percent symbol, i.e., do not enter 91.223%arrow_forward
- It has been observed that some persons who suffer colitis, again suffer colitis within one year of the first episode. This is due, in part, to damage from the first episode. The performance of a new drug designed to prevent a second episode is to be tested for its effectiveness in preventing a second episode. In order to do this two groups of people suffering a first episode are selected. There are 170 people in the first group and this group will be administered the new drug. There are 132 people in the second group and this group wil be administered a placebo. After one year, 14% of the first group has a second episode and 18% of the second group has a second episode. What is a 90% confidence interval for the difference in true proportion of the two groups/arrow_forwardYou are considering purchasing stand-alone shares in two companies: Company A and Company B. While both companies expect a rate of return of 15% under normal market conditions, the possible returns under strong and weak economies differ. There is a 30% chance of a weak economy outcome, a 30% chance of a strong economy outcome, and a 40% chance of a normal outcome. For Company A, under a strong economy, they expect a return of 75%. Under a weak economy, they expect a return of -45%. For Company B, under a strong economy, they expect a return of 23%. Under a weak economy, they expect a return of 7.5%. 1. Create a probability distribution table for both companies. 2. Calculate the standard deviation for both companies. 3. With the distribution, create either a bar graph or a bell curve to graph the two companies. 4. From your calculations, describe which company you would consider investing in, if you were risk averse.arrow_forwardAn ad agency is developing a campaign to promote a business opening in new mall development. To develop an appropriate mailing list, they decide to purchase lists of credit card holders from MasterCard and American Express. Combining the lists, they find the following: 40 percent of the people on the list have only a MasterCard and 10 percent have only an American Express card. Another 20 percent hold both MasterCard and American Express. Finally, 30 percent of those on the list have neither card. The contingency table is as the following: MasterCard No MasterCard .10 American Express 20 No American Express.40 What is the probability that a person on the list does not have a Mastercard? Select one: O a. .90 O b. 40 O C. .18 d. .33 e. .70arrow_forward
- 2.arrow_forwardThree businesswomen are trying to convene in Cincinnati for a business meeting. The first women (Woman 1) is arriving on a flight from Atlanta, the second (Woman 2) is arriving on a flight from Dallas, and the third (Woman 3) is arriving on a flight from Chicago. Historical data suggests that the Atlanta flight is “on time” 90% of the time, the Dallas flight is “on time” 95% of the time, and the Chicago flight is “on time” 80% of the time. Furthermore, historical data suggests that the three flights are independent with respect to on time behavior. Define the sample space for this random experiment. Compute the probability for each of the outcomes in the sample space. Let W denote the number of business women that arrive on time. Construct the probability mass function of W Construct the cumulative distribution function of W Find the expected value of W Compute the standard deviation of Warrow_forwardAs you read about each study, (a) classify the type of research that it reflects, and (b) identify the kinds of conclusions that might reasonably be drawn from the results. An educational psychologist videotapes 20 high school history teachers in action for a period of 4 weeks. He then codes every teacher statement as belonging to one of three categories: whether it (a) presents new information, (b) asks a question, or (c) gives instructions. He summarizes this information and compares the amount of teacher questioning to the students' scores on a district-wide history achievement test given later in the year. The researcher finds that when teachers ask a lot of questions in class, students are more likely to score at high levels on the achievement test. (a) Classify the research as one of the following: Quantitative/descriptive Quantitative/correlational Quantitative/experimental Quantitative/quasi-experimental Qualitative Mixed methods, and…arrow_forward
- MATLAB: An Introduction with ApplicationsStatisticsISBN:9781119256830Author:Amos GilatPublisher:John Wiley & Sons IncProbability and Statistics for Engineering and th...StatisticsISBN:9781305251809Author:Jay L. DevorePublisher:Cengage LearningStatistics for The Behavioral Sciences (MindTap C...StatisticsISBN:9781305504912Author:Frederick J Gravetter, Larry B. WallnauPublisher:Cengage Learning
- Elementary Statistics: Picturing the World (7th E...StatisticsISBN:9780134683416Author:Ron Larson, Betsy FarberPublisher:PEARSONThe Basic Practice of StatisticsStatisticsISBN:9781319042578Author:David S. Moore, William I. Notz, Michael A. FlignerPublisher:W. H. FreemanIntroduction to the Practice of StatisticsStatisticsISBN:9781319013387Author:David S. Moore, George P. McCabe, Bruce A. CraigPublisher:W. H. Freeman