***Please provide a brief explanation for problem 10-27***

***Please provide a brief explanation, particular part b of 10-27***

ANSWER for 10-2 and 10-3 is $6,653.95 (most likely); $7,764.74 (optimistic); $5,543.16 (pessimistic)

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? 10-2 The purchase of a used pickup for $22,000 is being A considered. Records for other vehicles show that costs for oil, tires, and repairs about equal the cost for fuel. Fuel costs are $1950 per year if the truck is driven 12,500 miles. The salvage value after 6 years of use drops about 15 per mile. Find the equivalent uniform annual cost if the interest rate is 5%. How much does this change if the annual mileage is 15,000? 10,000? 10-3 For the data in Problem 10-2 assume that the 10,000, 12,500, and 15,000 mileage values are, respectively, pessimistic, most likely, and optimistic estimates, Use a weighted estimate to calculate the equivalent annual cost. 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? 10-2 The purchase of a used pickup for $22,000 is being A considered. Records for other vehicles show that costs for oil, tires, and repairs about equal the cost for fuel. Fuel costs are $1950 per year if the truck is driven 12,500 miles. The salvage value after 6 years of use drops about 15 per mile. Find the equivalent uniform annual cost if the interest rate is 5%. How much does this change if the annual mileage is 15,000? 10,000? 10-3 For the data in Problem 10-2 assume that the 10,000, 12,500, and 15,000 mileage values are, respectively, pessimistic, most likely, and optimistic estimates, Use a weighted estimate to calculate the equivalent annual cost