# 42Math - 89 The payoff table for three possible courses of...

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Chapter 5 / Exercise 31
Mathematical Applications for the Management, Life, and Social Sciences
Harshbarger
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89)The payoff table for three possible courses of action A1, A2, and A3is given below.piA1xiA2xiA3xi.3\$70\$40\$50.2\$100\$120\$110.1\$160\$140\$90.4\$80\$140\$160Which course of action will produce the largest expected value? What is it?89)
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.Find the expected value.90)Mr. Cameron is sponsoring an summer concert. He estimates that he will make \$300,000 if itdoes not rain and make \$60,000 if it does rain. The weather bureau predicts the chance of rainis 0.34 for the day of the concert. What are Mr. Cameron's expected concert earning?90)
91)Mr. Cameron is sponsoring an summer concert. He estimates that he will make \$300,000 if itdoes not rain and make \$60,000 if it does rain. The weather bureau predicts the chance of rainis 0.34 for the day of the concert. An insurance company is willing to insure the concert for\$150,000 against rain for a premium of \$30,000. If he buys this policy, what are his expectedearnings from the concert?91)
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Chapter 5 / Exercise 31
Mathematical Applications for the Management, Life, and Social Sciences
Harshbarger
Expert Verified
ExamName___________________________________MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.Provide an appropriate response.