Help needed, with organized explanation please! Previous Problem Problem L (1 po

Question

Help needed, with organized explanation please!

Previous Problem Problem L (1 point) The owner of a small firm has just purchased a personal computer, which she expects will serve her for the next two years. The owner she "must' buy a surge suppressor to provide protection for her new hardware against possible surges or the capacity to damage the computer. The amount of damage to the co 3% chance of incurring 450 dollar damage, 5% chance of incurring 250 dollar damage, the next two years. An inexpensive suppressor willing to pay if she makes decisions on the basis of expected value? has been told that variations in the electrical current, which have s on the strength of the surge. It has been estimated that there is a and 13% chance of incurring 100 dollar damage from a surge within which would provide protection for only one surge, can be purchased. How much should the owner be Expected value Preview My AnswersSubmit Answers You have attempted this problem 0 times You have 4 attempts remaining. Page generated at 10/20/2017 at 08 14pm MDT weBWorK© 1996-20171 theme miath41 ww.version webworK 2 131pa version PG 2 13 The wee worKPr ject

Explanation / Answer

Expected value=39

let x=damage and p(x)= probability of corresponding damage

expected damage=sum(x*p(x))=39

from the question it can be infred that ther is no damage of remaining type of x

i.e. there is 0 damage in 79% (100-3-5-13=79%) chance

x 450 250 100 0 sum p(x) 0.03 0.05 0.13 0.79 1 x*p(x) 13.5 12.5 13 0 39

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.