Hint(s) Check My Work The J.R. Ryland Computer Company is considering a plant expansion to enable the company to begin production of a new computer product. The company's president must determine whether to make the expansion a medium- or large-scale project. Demand for the new product is uncertain, which for planning purposes may be low demand, medium demand, or high demand. The probability estimates for demand are 0.20, 0.40, and 0.40, respectively. Lettin x and y indicate the annual profit in thousands of dollars, the firm's planners developed the following profit forecasts for the medium- and large-scale expansion projects. Medium-Scale Large-Scale Expansion Profit Expansion Profit f(x) y f(y) Low 50 0.20 0 0.20 Demand Medium 150 0.40 100 0.40 High 200 0.40 300 0.40 (a) Compute the expected value for the profit associated with the two expansion alternatives. Round your answers to whole numbers, if needed. Medium-Scale Large-Scale Expected Value 135 120 Which decision is preferred for the objective of maximizing the expected profit? Large-Scale (b) Compute the variance for the profit associated with the two expansion alternatives. Round your answers to whole numbers, if needed. Variance Medium-Scale Large-Scale Which decision is preferred for the objective of minimizing the risk or uncertainty? Medium-Scale Hide Feedback Partially Correct Hint(s) Check My Work Suppose that for a recent admissions class, an Ivy League college received 2,923 applications for early admission. Of this group, it admitted 1,105 students early, rejected 854 outright, and deferred 964 to the regular admission pool for further consideration. In the past, this school has admitted 18% of the deferred early admission applicants during the regular admission process. Counting the students admitted early and the students admitted during the regular admission process, the total class size was 2,375. Let E, R, and D represent the events that a student who applies for early admission is admitted early, rejected outright, or deferred to the regular admissions pool. (a) Use the data to estimate P(E), P(R), and P(D). If required, round your answers to four decimal places. P(E) = 0.3780 P(R) = 0.3006 P(D) = (b) Are events E and D mutually exclusive? Yes Find P(END). If your answer is zero, enter "0". 0 (c) For the 2,375 students who were admitted, what is the probability that a randomly selected student was accepted during early admission? If required, round your answer to four decimal places. 0.3785 (d) Suppose a student applies for early admission. What is the probability that the student will be admitted for early admission or be deferred and later admitted during the regular admission process? If required, round your answer to four decimal places. 0.7079 Hide Feedback Partially Correct