Please look at problem 10-17, table of data is next photo at the top. Please answer a) and b) with steps
first cost P Net Revenue P First Cost probability $300,000 400.000 600.000 0.2 0.5 0.3 $ 70.000 90.000 100,000 0.3 0.5 0.2 and profits are uncertain. The has predicted that sales might y value is 6000 units annually. is estimated to be 3500 units sability of 25%. Manufactur Ecther have estimated the most be $33. The pessimistic value lity of 0.25. and the optimistic (a) What is the joint probability distribution for first robability of 0.3. Construct the (b) Define optimistic, most likely, and pessimistic scenarios by using both optimistic, both most banks and Nome, Alaska, will likely, and both pessimistic estimates. What is construction cost of $7 million his cost is considered to have a and cutting it by 25% is consid. 10-16 A robot has just been installed at a cost of $81,000. It will have no salvage value at the end of its useful bility of 10%. The state's interest road should last 25 years before uts per year with a Ons for sales and unit profits, m. What is the probability distri alent annual construction cost per Expected Value 10-18 For the dau expected as 10-19 For the dar value for 10-20 A man w a friend thinks b believes the end cost and net revenue? the present worth for each scenario? S2 life Useful bability Life years) Probability 0.2 0.7 0.1 12 5 4 1/6 2/3 1/6 SI w th 10-21 F m examination in physics and of 78. The mean was 65 and the was 18. Bill received a score of where the exam mean was 14 and tion was 12. Which student ranked 10-22 (a) 1 S so ? Explain. an auto accident that was your we another accident or receive a solation within the next 3 years, you of the assigned risk" pool, and you $1250 per year for insurance, sity of an accident or moving vio- per year, what is the probability of your "extra" insurance payments 4 years? Assume that insurance is mually and that violations register the year -just in time to affect next ance premium joint probability distribution for car and useful life? istic, most likely, and pessimistic using both optimistic, both most th pessimistic estimates. What is th Teturn for each scenario? 10-17 Modifying an assembly line has a first cost of $165,000, and its salvage value is $0. The firm's interest rate is 10%. The savings shown in the table depend on whether the assembly line runs one, two, or three shifts and on whether the product is made for 4 or 6 years. Problems 377 Useful Life years) Probability Shifts/ Savings day year Probability 0.65 0.35 6 1 2 3 $25,000 30,000 35.000 0.25 0.40 0.35 (a) Give the joint probability distribution for savings per year and the useful life. (b) Define optimistic, most likely, and pessimistic scenarios by using both optimistic, both most likely, and both pessimistic estimates. Use a life of 4 years as the most likely value. What is the present worth for each scenario? Expected Value 10-18 For the data in Problem 10-8, compute the project med completion time. first cost P Net Revenue P First Cost probability $300,000 400.000 600.000 0.2 0.5 0.3 $ 70.000 90.000 100,000 0.3 0.5 0.2 and profits are uncertain. The has predicted that sales might y value is 6000 units annually. is estimated to be 3500 units sability of 25%. Manufactur Ecther have estimated the most be $33. The pessimistic value lity of 0.25. and the optimistic (a) What is the joint probability distribution for first robability of 0.3. Construct the (b) Define optimistic, most likely, and pessimistic scenarios by using both optimistic, both most banks and Nome, Alaska, will likely, and both pessimistic estimates. What is construction cost of $7 million his cost is considered to have a and cutting it by 25% is consid. 10-16 A robot has just been installed at a cost of $81,000. It will have no salvage value at the end of its useful bility of 10%. The state's interest road should last 25 years before uts per year with a Ons for sales and unit profits, m. What is the probability distri alent annual construction cost per Expected Value 10-18 For the dau expected as 10-19 For the dar value for 10-20 A man w a friend thinks b believes the end cost and net revenue? the present worth for each scenario? S2 life Useful bability Life years) Probability 0.2 0.7 0.1 12 5 4 1/6 2/3 1/6 SI w th 10-21 F m examination in physics and of 78. The mean was 65 and the was 18. Bill received a score of where the exam mean was 14 and tion was 12. Which student ranked 10-22 (a) 1 S so ? Explain. an auto accident that was your we another accident or receive a solation within the next 3 years, you of the assigned risk" pool, and you $1250 per year for insurance, sity of an accident or moving vio- per year, what is the probability of your "extra" insurance payments 4 years? Assume that insurance is mually and that violations register the year -just in time to affect next ance premium joint probability distribution for car and useful life? istic, most likely, and pessimistic using both optimistic, both most th pessimistic estimates. What is th Teturn for each scenario? 10-17 Modifying an assembly line has a first cost of $165,000, and its salvage value is $0. The firm's interest rate is 10%. The savings shown in the table depend on whether the assembly line runs one, two, or three shifts and on whether the product is made for 4 or 6 years. Problems 377 Useful Life years) Probability Shifts/ Savings day year Probability 0.65 0.35 6 1 2 3 $25,000 30,000 35.000 0.25 0.40 0.35 (a) Give the joint probability distribution for savings per year and the useful life. (b) Define optimistic, most likely, and pessimistic scenarios by using both optimistic, both most likely, and both pessimistic estimates. Use a life of 4 years as the most likely value. What is the present worth for each scenario? Expected Value 10-18 For the data in Problem 10-8, compute the project med completion time
