Question

Questions 6-14 are related to the following: In the table below x denotes the X-Tract Company’s projected annual profit (in $1,000). The table also shows the probability of earning that profit. The negative value indicates a loss. x f(x) -200 0.01 -100 0.04 0 0.10 250 0.25 350 0.50 400 0.08 500 0.02 6 The probability that X-Tract will break even is, f(x = 0) = ________. a 0.10 b 0.12 c 0.14 d 0.16 7 What is the probability that X-Trac will be profitable? That is, f(x > 0) = _________. a 0.95 b 0.85 c 0.70 d 0.65 8 What is the expected value of profit? a $235.0 thousand b $246.5 thousand c $258.0 thousand d $273.5 thousand 9 What is the variance of profit? a 20056.70 b 20259.30 c 20672.75 d 21086.205 10 On average, profit (loss) amounts deviate from the expected profit by ______ thousand. a $143.78 thousand b $147.37 thousand c $151.06 thousand d $154.84 thousand 11 If we add $125 to the profit/loss column above, the new expected value of profit will be, a 382.0 b 387.5 c 393.0 d 398.5 12 If we add $125 to the profit/loss column above, the new variance of profit will be, a 36297.75 b 36172.75 c 20797.75 d 20672.75 13 If we quadruple the profit column above, the new expected value of profit will be. a 1090 b 1094 c 4360 d 4376 14 If we quadruple the profit column above, the new variance of profit will be. a 82691 b 165382 c 248073 d 330764

Answer 1

answered by: anonymous