Question

Two hairdressers work in Robert's salon. Robert and Billy Each customer has a 60% chance go...

Two hairdressers work in Robert's salon. Robert and Billy Each customer has a 60% chance go being served by Robert, and a 40% chance each of being served by Billy. Customers receive a utility of 10 from being served by Robert, and of 5 of being served by Billy.
What is the expected utility for a customer at Robert's salon?

Math   Statistics-And-Probability   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Expected Utility for a customer at Robert's salon is calculated as weighted average of the utilities of each of it's possible outcomes.

Outcome A: Customer being served by Robert : Probability of this outcome, P(A) = 60%

Outcome B: Customer being served by Billy: Probability of this outcome, P(B) = 40%

Number (Utility) Weighting Factor (w) Number*Weighting Factor
Robert 10 0.6 6
Billy 5 0.4 2
Weighted Average 8

Expected Utility E(U) = [10*0.6 + 5*0.4] = 6+2 = 8

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
You estimate that AE Corp has a 20% chance of generating 30% returns, a 20% chance...
You estimate that AE Corp has a 20% chance of generating 30% returns, a 20% chance of generating -40% returns, and a 60% chance of generating 10% returns. What are the expected returns and standard deviation of AE Corp? Acme Inc. plans to pay a $1/share dividend on a quarterly basis. What is the price of their shares given a 12% annually compounded cost of capital? What if the firm plans to increase its dividend by 5% every yea
The amount of time a bank teller spends with each customer has a population mean μ=...
The amount of time a bank teller spends with each customer has a population mean μ= 3.10 and a standard deviation σ =0.40 minute. If you select a random sample of 20 customers REQUIRED What is the probability that the mean time spent per customer is at least 5 minutes? There is an 85% chance that the sample mean is below how many minutes? What assumption must you make in order to solve (a) and (b)? If you select a...
A mall has six different bakeries, namely Bakery A,B,C,D,E,F . Assume each customer that visits the...
A mall has six different bakeries, namely Bakery A,B,C,D,E,F . Assume each customer that visits the mall is equally likely to choose any of the six different bakeries, independent of the choices of the previous customers. The number of customers going to the mall during the first 10 minutes of business at the start of the day is a Poisson random variable with mean 8. Compute the expected value of the number of bakeries that will serve customers during the...
Suppose each time a potential customer visits your website on a weekday there is a 25%...
Suppose each time a potential customer visits your website on a weekday there is a 25% chance they purchase something. Every hour you get exactly 20 potential customers visiting your website. Suppose that all website visits are independent. What is the probability that you make 5 or less sales in an hour? What is the expected number of sales from your website in a 10 hour time period? Suppose on weekends the probability a visitor makes a purchase is 0.63...
PA 4-4 (Algo) Mr. K's is a very popular hair salon. It... Mr. K’s is a...
PA 4-4 (Algo) Mr. K's is a very popular hair salon. It... Mr. K’s is a very popular hair salon. It offers high-quality hairstyling and physical relaxation services at a reasonable price, so it always has unlimited demand. The service process includes five activities that are conducted in the sequence described next (the time required for each activity is shown in parentheses): Activity 1: Welcome a guest and offer homemade herb tea (9 minutes). Activity 2: Wash and condition hair...
What is the standard deviation of a stock that has a 10 percent chance of earning...
What is the standard deviation of a stock that has a 10 percent chance of earning 18%, a 10 percent chance of making 11%, a 40 percent chance of making 5%, and a 40 percent chance of making 22%? A. 7.95% B. 13.70% C. 7.78% D. 13.05% You have $250,000 to invest in two stocks. Stock A has an expected return of 15% and stock B has an expected return of 8%. How much must you invest in each stock...
A grocery store’s analysis of a recent customer survey finds an increasing number of customers interested...
A grocery store’s analysis of a recent customer survey finds an increasing number of customers interested in being able to custom-order meals to go. Maria sees this as an opportunity to enter a niche market for busy families or individuals who want home-cooked meals with a variety of options and combinations, but who have little time. Maria already has an expansive deli, bakery, and prepared foods section in the store and sees this opportunity as a viable option to increase...
The time between customer arrivals at a furniture store has an approximate exponential distribution with mean...
The time between customer arrivals at a furniture store has an approximate exponential distribution with mean θ = 9.9 minutes. [Round to 4 decimal places where necessary.] If a customer just arrived, find the probability that the next customer will arrive in the next 9.4 minutes. Tries 0/5 If a customer just arrived, find the probability that the next customer will arrive within next 13 to 17 minutes? Tries 0/5 If after the previous customer, no customer arrived in next...
Lisa spends all her income on pizzas and soda. The table below shows Lisa’s marginal utility...
Lisa spends all her income on pizzas and soda. The table below shows Lisa’s marginal utility for pizza and marginal utility for soda. If the price of pizza is $10, the price of soda is $5, and Lisa has $40 to spend on the two goods: State the equation of Lisa’s equilibrium. Construct a table based on the equation from the table below. How much is the marginal utility per dollar at equilibrium? What combination of the two goods will...
1) Consider two local banks. Bank A has 90 loans? outstanding, each for? $1.0 million, that...
1) Consider two local banks. Bank A has 90 loans? outstanding, each for? $1.0 million, that it expects will be repaid today. Each loan has a 7% probability of? default, in which case the bank is not repaid anything. The chance of default is independent across all the loans. Bank B has only one loan of $90 million? outstanding, which it also expects will be repaid today. It also has a 7% probability of not being repaid. Calculate the?following: a....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT