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10-27 For the data in Problems 10-2 and 10-3, assume that the optimistic probability is 20%, the most likely is 50%, and the pessimistic is
10-27 For the data in Problems 10-2 and 10-3, assume that the optimistic probability is 20%, the most likely is 50%, and the pessimistic is 30%. (a) What is the expected value of the equivalent uniform annual cost? (b) Compute the expected value for the number of miles, and the corresponding equivalent uniform annual cost. (c) Do the answers to (a) and (b) match? Why or why not? 10-27 For the data in Problems 10-2 and 10-3, assume that the optimistic probability is 20%, the most likely is 50%, and the pessimistic is 30%. (a) What is the expected value of the equivalent uniform annual cost? (b) Compute the expected value for the number of miles, and the corresponding equivalent uniform annual cost. (c) Do the answers to (a) and (b) match? Why or why not
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