Question

An investor is interested in purchasing an apartment building containing six apartments. The current owner provides the following probability distribution indicating the probability that the given number of apartments will be rented during a given month.

Number of Rented Apartments |
0 | 1 | 2 | 3 | 4 | 5 | 6 |

Probability |
^{7}⁄_{36} |
^{1}⁄_{18} |
^{1}⁄_{9} |
^{1}⁄_{4} |
^{1}⁄_{12} |
^{5}⁄_{18} |
^{1}⁄_{36} |

Find the number of apartments the investor could expect to be
rented during a given month. (Hint: Find the expected value.)

a) 2.9667

b) 2.9167

c) 2.9367

d) 2.9067

e) 2.8767

2. The odds that a child entering a convenience store with her parents will not get a package of cupcakes are 1 to 13. What is the probability she will get a package of cupcakes?

a) 0.0714

b) 0.1494

c) 0.0769

d) 0.0115

e) 0.9286

f) None of the above.

Answer #1

a)

The expected number of rented apartments =

= 0 * (7/36) + 1 * (1/18) + 2 * (1/9) + 3 * (1/4) + 4 * (1/12) + 5 * (5/18) + 6 * (1/36)

= 2.916667

So, b) 2.9167 is the correct answer.

2.

The odds that a child entering a convenience store with her parents will not get a package of cupcakes are 1 to 13.

So, the probability she will not get a package of cupcakes = 1 / (1 + 13) = 1/14

The probability she will get a package of cupcakes = 1 - (1/14) = 13/14 = 0.9285714

So, the correct answer is e) 0.9286

John is interested in purchasing a multi-office building
containing five offices. The current owner provides the following
probability distribution indicating the probability that the given
number of offices will be leased each year.
Number of Lease Offices
0
1
2
3
4
5
Probability
2/7
3/35
6/35
1/7
9/35
2/35
If each yearly lease is $12,000, how much could John expect to
collect in yearly leases for the whole building in a given year?(in
dollars)

Delta airlines case study
Global strategy. Describe the current global
strategy and provide evidence about how the firms resources
incompetencies support the given pressures regarding costs and
local responsiveness. Describe entry modes have they usually used,
and whether they are appropriate for the given strategy. Any key
issues in their global strategy?
casestudy:
Atlanta, June 17, 2014. Sea of Delta employees and their
families swarmed between food trucks, amusement park booths, and
entertainment venues that were scattered throughout what would...

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