Finite Mathematics (11th Edition)
11th Edition
ISBN: 9780321979438
Author: Margaret L. Lial, Raymond N. Greenwell, Nathan P. Ritchey
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 11, Problem 4EA
Suppose Linda knows that Mel is going to stick to his strategy (Chinese with probability 0.1 and French with probability 0.9). What strategy maximizes her enjoyment? What is her expected payoff? If she plays this way, what might Mel do?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Avicenna, an insurance company, offers five-year commercial property insurance policies to small businesses. If the holder of one of these policies experiences
property damage in the next five years, the company must pay out $23,600 to the policy holder. Executives at Avicenna are considering offering these policies
for $791 each. Suppose that for each holder of a policy there is a 3% chance they will experience property damage in the next five years and a 97% chance
they will not.
(If necessary, consult a list of formulas.)
If the executives at Avicenna know that they will sell many of these policies, should they expect
to make or lose money from offering them? How much?
To answer, take into account the price of the policy and the expected value of the amount paid
out to the holder.
O Avicenna can expect to make money from offering these policies.
In the long run, they should expect to make
dollars on each policy sold.
O Avicenna can expect to lose money from offering these policies.…
A food manufacturer has to decide how many batches of a product to produce next week. If one batch is produced, the profit will be $15,000. If two batches are produced, but the demand is only sufficient for one batch, then a loss of $5,000 will occur. If two batches are produced and the demand is equal to two batches, then a profit of $20,000 will occur. The food manufacturer estimates the probabilities of these two outcomes as being 0.4 and 0.6 respectively. A separate forecasting tool, estimates demand will equal two batches. In the past, this tool has correctly predicted demand in 60% of weeks, irrespective of what the level of demand turned out to be. To maximise his expected profit, the manufacturer should:
Select one:
a. produce 1 batch
b. produce 2 batches
c. be indifferent between producing 1 or 2 batches
d. seek more information, as it is not possible to compute the expected profits from this information
Avicenna, an insurance company, offers five-year commercial property insurance policies to small businesses. If the holder of one of these policies experiences property damage in the next five years, the company must pay out
$26,500
to the policy holder. Executives at Avicenna are considering offering these policies for
$497
each. Suppose that for each holder of a policy there is a
2%
chance they will experience property damage in the next five years and a
98%
chance they will not.(If necessary, consult a list of formulas.)
If the executives at Avicenna know that they will sell many of these policies, should they expect to make or lose money from offering them? How much?
To answer, take into account the price of the policy and the expected value of the amount paid out to the holder.
Avicenna can expect to make money from offering these policies.
In the long run, they should expect to makedollars on each policy sold.
Avicenna can…
Chapter 11 Solutions
Finite Mathematics (11th Edition)
Ch. 11.1 - In the following game, decide on the payoff when...Ch. 11.1 - Prob. 2ECh. 11.1 - Prob. 3ECh. 11.1 - In the following game, decide on the payoff when...Ch. 11.1 - Prob. 5ECh. 11.1 - Prob. 6ECh. 11.1 - Prob. 7ECh. 11.1 - Does it have a saddle point?Ch. 11.1 - Prob. 9ECh. 11.1 - Prob. 10E
Ch. 11.1 - Prob. 11ECh. 11.1 - Prob. 12ECh. 11.1 - Prob. 13ECh. 11.1 - Prob. 14ECh. 11.1 - Prob. 15ECh. 11.1 - Prob. 16ECh. 11.1 - Prob. 17ECh. 11.1 - Prob. 18ECh. 11.1 - Prob. 19ECh. 11.1 - Prob. 20ECh. 11.1 - Prob. 21ECh. 11.1 - Prob. 22ECh. 11.1 - Prob. 23ECh. 11.1 - Prob. 24ECh. 11.1 - Prob. 25ECh. 11.1 - Prob. 26ECh. 11.1 - Prob. 27ECh. 11.1 - Prob. 28ECh. 11.1 - Prob. 29ECh. 11.1 - Prob. 30ECh. 11.1 - Prob. 31ECh. 11.1 - Prob. 32ECh. 11.1 - Prob. 33ECh. 11.1 - Prob. 34ECh. 11.1 - Prob. 35ECh. 11.1 - Prob. 36ECh. 11.1 - Prob. 37ECh. 11.1 - APPLY IT Football When a football team has the...Ch. 11.1 - Prob. 39ECh. 11.1 - Prob. 40ECh. 11.1 - Children's Game In the children's game rock,...Ch. 11.2 - Suppose a game has payoff matrix [ 3452 ]. Suppose...Ch. 11.2 - Suppose a game has payoff matrix [ 041324110 ]....Ch. 11.2 - Find the optimum strategies for player A and...Ch. 11.2 - Find the optimum strategies for player A and...Ch. 11.2 - Prob. 5ECh. 11.2 - Prob. 6ECh. 11.2 - Prob. 7ECh. 11.2 - Prob. 8ECh. 11.2 - Prob. 9ECh. 11.2 - Prob. 10ECh. 11.2 - Prob. 11ECh. 11.2 - Prob. 12ECh. 11.2 - Prob. 13ECh. 11.2 - Prob. 14ECh. 11.2 - Prob. 15ECh. 11.2 - Prob. 16ECh. 11.2 - Prob. 17ECh. 11.2 - Prob. 18ECh. 11.2 - Prob. 19ECh. 11.2 - Prob. 20ECh. 11.2 - Prob. 21ECh. 11.2 - Prob. 22ECh. 11.2 - Prob. 23ECh. 11.2 - Prob. 24ECh. 11.2 - Prob. 25ECh. 11.2 - Prob. 26ECh. 11.2 - Prob. 27ECh. 11.2 - Prob. 28ECh. 11.2 - A reader wrote to the "Ask Marilyn" column in...Ch. 11.2 - Prob. 30ECh. 11.2 - Prob. 31ECh. 11.2 - Prob. 32ECh. 11.2 - Prob. 33ECh. 11.2 - Choosing Medication The number of cases of African...Ch. 11.2 - Prob. 35ECh. 11.2 - Prob. 36ECh. 11.2 - 37. Golf In a simplified variation of the Ryder...Ch. 11.2 - Prob. 38ECh. 11.2 - Prob. 39ECh. 11.2 - Prob. 40ECh. 11.2 - Finger Game Repeal Exercise 40 if each player may...Ch. 11.3 - Use the graphical method to find the optimum...Ch. 11.3 - Prob. 2ECh. 11.3 - Use the graphical method to find the optimum...Ch. 11.3 - Prob. 4ECh. 11.3 - Prob. 5ECh. 11.3 - Prob. 6ECh. 11.3 - Prob. 7ECh. 11.3 - Prob. 8ECh. 11.3 - Prob. 9ECh. 11.3 - Use the simplex method to find the optimum...Ch. 11.3 - Prob. 11ECh. 11.3 - Prob. 12ECh. 11.3 - Prob. 13ECh. 11.3 - Prob. 14ECh. 11.3 - Prob. 15ECh. 11.3 - In Exercises 1327, use the graphical method when...Ch. 11.3 - Prob. 17ECh. 11.3 - Prob. 18ECh. 11.3 - Prob. 19ECh. 11.3 - Prob. 20ECh. 11.3 - Prob. 21ECh. 11.3 - Prob. 22ECh. 11.3 - Prob. 23ECh. 11.3 - In Exercises 1327, use the graphical method when...Ch. 11.3 - In Exercises 13–27, use the graphical method when...Ch. 11.3 - Prob. 26ECh. 11.3 - Prob. 27ECh. 11 - 1. Since they like to eat out, each prefers a...Ch. 11 - If Linda likes French food more than Mel likes...Ch. 11 - Prob. 3EACh. 11 - 4. Suppose Linda knows that Mel is going to stick...Ch. 11 - Prob. 5EACh. 11 - Prob. 6EACh. 11 - Prob. 1RECh. 11 - Prob. 2RECh. 11 - Prob. 3RECh. 11 - Prob. 4RECh. 11 - Prob. 5RECh. 11 - Prob. 6RECh. 11 - Prob. 7RECh. 11 - Prob. 8RECh. 11 - Prob. 9RECh. 11 - Prob. 10RECh. 11 - 11. How can you determine from the payoff matrix...Ch. 11 - Prob. 12RECh. 11 - Prob. 13RECh. 11 - Prob. 14RECh. 11 - Prob. 15RECh. 11 - Prob. 16RECh. 11 - Prob. 17RECh. 11 - Prob. 18RECh. 11 - Prob. 19RECh. 11 - Prob. 20RECh. 11 - Prob. 21RECh. 11 - Prob. 22RECh. 11 - Prob. 23RECh. 11 - Prob. 24RECh. 11 - Prob. 25RECh. 11 - For the following games, find the strategies...Ch. 11 - Prob. 27RECh. 11 - For the following games, find the strategies...Ch. 11 - Prob. 29RECh. 11 - Prob. 30RECh. 11 - Prob. 31RECh. 11 - Prob. 32RECh. 11 - Prob. 33RECh. 11 - Prob. 34RECh. 11 - Prob. 35RECh. 11 - For each game, remove any dominated strategies,...Ch. 11 - Prob. 37RECh. 11 - Prob. 38RECh. 11 - Prob. 39RECh. 11 - Prob. 40RECh. 11 - Prob. 41RECh. 11 - Prob. 42RECh. 11 - Prob. 43RECh. 11 - Prob. 44RECh. 11 - Prob. 45RECh. 11 - Prob. 46RECh. 11 - Labor Relations In labor-management relations,...Ch. 11 - Prob. 48RECh. 11 - Prob. 49RECh. 11 - Prob. 50RECh. 11 - Prob. 51RECh. 11 - Prob. 52RECh. 11 - Prob. 53RECh. 11 - Prob. 54RECh. 11 - Politics Mary Wilkinson, a candidate for city...Ch. 11 - Prob. 56RECh. 11 - Prob. 57RECh. 11 - Prob. 58RECh. 11 - Prob. 59RECh. 11 - Prob. 60RECh. 11 - Prob. 61RECh. 11 - Prob. 62RECh. 11 - Prob. 63RECh. 11 - Newcomb's Paradox Suppose there are two boxes, A...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, subject and related others by exploring similar questions and additional content below.Similar questions
- Suppose an oil company is thinking of buying some land for $11,000,000. There is a 60% chance of economic growth and a 40% chance of recession. The probability of discovering oil is 46% when there is economic growth and 34% when there is a recession. If there is economic growth and the oil company discovers oil, the value of the land will triple. If they do not discover oil, the value of the land will decrease by 11%. If there is a recession and the company discovers oil, the value of the land will increase by 50%. If they do not discover oil, the land will decrease in value by 80%. What is the expected value of the investment? Give your answer to the nearest dollar. Avoid rounding within calculations. Select the correct interpretation of the expected value. O The expected value represents the mean investment value for a $11,000,000 land purchase. The oil company should invest in the land because, on average, the investment is profitable. O The expected value provides the total cost of…arrow_forwardMike, a lumber wholesaler, is considering the purchase of a (railroad) car- load of varied dimensional lumber. He calculates that the probabilities of reselling the load for $10,000, $9000, and for $8000 are 0.22, 0.33, and 0.45 respectively. In order to ensure an expected profit of $3000, how much can Mike pay for the loadarrow_forwardSuppose an oil company is thinking of buying some land for $10,000,000. There is a 60%60% chance of economic growth and a 40%40% chance of recession. The probability of discovering oil is 44%44% when there is economic growth and 32%32% when there is a recession. If there is economic growth and the oil company discovers oil, the value of the land will triple. If they do not discover oil, the value of the land will decrease by 10%.10%. If there is a recession and the company discovers oil, the value of the land will increase by 50%.50%. If they do not discover oil, the land will decrease in value by 75%.75%. What is the expected value of the investment? Give your answer to the nearest dollar. Avoid rounding within calculations. $$ Select the correct interpretation of the expected value. The expected value represents what the actual investment value will be for this land purchase of $10,000,000. The company should make the investment because the expected value…arrow_forward
- Christaker is considering transitioning to a new job next year. He will either keep his current job which pays a net income of $77,000 or switch to a new job. If he changes jobs, his net income will vary depending on the state of the economy. He estimates that the economy will be Strong with 20% chance ($87,000 net income), Average with 40% chance ($75,000 net income), or Weak with 40% chance ($61,000 net income). Part A 1. What is the best expected value for Christaker and the corresponding decision using the Expected Monetary Value approach? $ Select an answer 2. What is the expected value of perfect information (EVPI)?arrow_forwardYour probability professor has a tabby cat who sleeps 34% of the time and seems to respond to stimuli more or less randomly. If a human pets her when she’s awake, she will request more petting 8% of the time, food 38% of the time, and a game of fetch the rest of the time. If a human pets her when she’s asleep, she will request more petting 33% of the time, food 41% of the time, and a game of fetch the rest of the time. (You can assume that the humans don’t pet her disproportionally often when she’s awake.) • If the cat requests food when petted, what is the probability that she was asleep? • If the cat requests a game of fetch when petted, what is the probability that she was not asleep?arrow_forwardSuppose you are deciding whether or not to bring an umbrella to school and the weather can be either sunny or rainy. Initially, you think the probability that it will be sunny is P(S)=0.6, and the probability that it will be rainy is P(R)=0.4. If you bring an umbrella and it rains, your payoff is 6. If you bring an umbrella and it is sunny, your payoff is 9. If you don’t bring an umbrella and it rains, your payoff is 0. If you don’t bring an umbrella and it is sunny, your payoff is 10. Suppose that you check two websites and see that both say it will be sunny. You know that the two forecasts are independent of each other, and each forecast is correct 70% of the time. That is, the probability that the website says it will be sunny given that it actually will be sunny is 0.7, and the probability that the website says it will rain given that it actually will rain is 0.7. If you are a Bayesian updater, what is your updated belief about the probability that it will be sunny? Do you bring…arrow_forward
- You play the following game: You bet $1, a fair die is rolled and if it shows 6 you win $4, otherwise you lose your dollar. If you must choose the number of rounds in advance, how should you choose it to maximize your chance of being ahead (having won more than you have lost) when you quit, and what is the probability of this?arrow_forwardi need help with how to figure out this problem. i don't understand how to find the solution in a game you toss a fari coin, and a fair six sided die. if you toss a heads on the coin and roll either a 3 or a 6 on the die, you win $30. Otherwise, you lose $6. What is the expected profit of one round of this game?arrow_forwardA blackjack player at a Las Vegas casino learned that the house will provide a freeroom if play is for four hours at an average bet of $50. The player’s strategy provides aprobability of .49 of winning on any one hand, and the player knows that there are60 hands per hour. Suppose the player plays for four hours at a bet of $50 per hand.a. what is the player’s expected payoff?arrow_forward
- Suppose I flip a fair coin n = 20 times. A psychic tries to predict the outcome before each flip. Three researchers have different ideas about the psychic's ability. There is Sydney, the Skeptic (S), who thinks the psychic's success rate is between 49% and 51%. There is Morgan, the Mark, M, who thinks that the psychic's success rate is 80%. And there is Carter, the Cynic (C), who thinks the psychic's success rate is 10%. Specifically: S+ 0 ~ U(.49, .51) M + 0 = .80 C0 = .10 %3D In all cases, assume the number of successful predictions follows a binomial distribution with success rate 0. Usek for the number of successes and n for the number of trials. Given all that: Determine the formula for the Bayes factor (a.k.a., likelihood ratio) supporting Carter over Morgan. Call that Bayes factor Bc:M Determine the formula for the Bayes factor (a.k.a., likelihood ratio) supporting Morgan over Sydney. Call that Bayes factor BM:S Determine the formula for the Bayes factor (a.k.a., likelihood…arrow_forwardCharlie buys a one-year term home insurance policy for $p, that will pay $200,000 in the event of a major catastrophe and $35,000 in the event of a minor catastrophe. Charlie's home has a 0.2% chance of a major catastrophe and a 0.7% of a minor catastrophe during the one year term. What did the insurance company charge Charlie for this policy if the company expected to break even?arrow_forwardYou are playing a game of dice where it involves rolling three dice and betting on one of the six numbers that are on the dice. The game costs P80 to play. You win P160 if the number you bet appears on only one dice, P180 if on two dice and P320 if on all three. What is your expected profit from the game?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Discrete Mathematics and Its Applications ( 8th I...MathISBN:9781259676512Author:Kenneth H RosenPublisher:McGraw-Hill EducationMathematics for Elementary Teachers with Activiti...MathISBN:9780134392790Author:Beckmann, SybillaPublisher:PEARSON
- Thinking Mathematically (7th Edition)MathISBN:9780134683713Author:Robert F. BlitzerPublisher:PEARSONDiscrete Mathematics With ApplicationsMathISBN:9781337694193Author:EPP, Susanna S.Publisher:Cengage Learning,Pathways To Math Literacy (looseleaf)MathISBN:9781259985607Author:David Sobecki Professor, Brian A. MercerPublisher:McGraw-Hill Education
Discrete Mathematics and Its Applications ( 8th I...
Math
ISBN:9781259676512
Author:Kenneth H Rosen
Publisher:McGraw-Hill Education
Mathematics for Elementary Teachers with Activiti...
Math
ISBN:9780134392790
Author:Beckmann, Sybilla
Publisher:PEARSON
Thinking Mathematically (7th Edition)
Math
ISBN:9780134683713
Author:Robert F. Blitzer
Publisher:PEARSON
Discrete Mathematics With Applications
Math
ISBN:9781337694193
Author:EPP, Susanna S.
Publisher:Cengage Learning,
Pathways To Math Literacy (looseleaf)
Math
ISBN:9781259985607
Author:David Sobecki Professor, Brian A. Mercer
Publisher:McGraw-Hill Education
Continuous Probability Distributions - Basic Introduction; Author: The Organic Chemistry Tutor;https://www.youtube.com/watch?v=QxqxdQ_g2uw;License: Standard YouTube License, CC-BY
Probability Density Function (p.d.f.) Finding k (Part 1) | ExamSolutions; Author: ExamSolutions;https://www.youtube.com/watch?v=RsuS2ehsTDM;License: Standard YouTube License, CC-BY
Find the value of k so that the Function is a Probability Density Function; Author: The Math Sorcerer;https://www.youtube.com/watch?v=QqoCZWrVnbA;License: Standard Youtube License