hw4 - Business Mathematics I Homework 3 Prepared for Math...

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Business Mathematics I Homework 3 Prepared for Math 173 Pima Community College By Jamal Nadeem Submitted on 7-23-04 Instructions: Type out a brief yet clear derivation of all answers. All mathematical objects must be typeset appropriately.
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1. ( Exercise 1 of Expected Value ) Let X be the sum of the faces obtained by rolling a fair die twice. Use the sample space, S , to compute ) 7 4 ( X P . Solution. 2 1 36 18 ) 1 , 6 ( ); 2 , 5 ( ); 1 , 5 ( ); 3 , 4 ( ); 2 , 4 ( ); 1 , 4 ( ); 4 , 3 ( ); 3 , 3 ( ); 2 , 3 ( ); 1 , 3 ( ); 5 , 2 ( ); 4 , 2 ( ); 3 , 2 ( ); 2 , 2 ( ); 6 , 1 ( ); 5 , 1 ( ); 4 , 1 ( ); 3 , 1 ( = = 2. Let V be the product of the faces obtained by rolling a fair die twice. Use the sample space, S , to compute ) 20 6 ( < V P . Solution. 36 19 ) 3 , 6 ( ); 2 , 6 ( ); 4 , 5 ( ); 3 , 5 ( ); 2 , 5 ( ); 5 , 4 ( ); 4 , 4 ( ); 3 , 4 ( ); 2 , 4 ( ); 6 , 3 ( ); 5 , 3 ( ); 4 , 3 ( ); 3 , 3 ( ); 2 , 3 ( ); 6 , 2 ( ); 5 , 2 ( ); 4 , 2 ( ); 3 , 2 ( ); 6 , 1 ( = 3. ( Exercise 13 of Expected Value ) You can invest in either Project A or Project B. If you invest in Project A, there is a 30% chance that you lose $26,000, a 50% chance that you break even, and a 20% chance that you make $68,000. If you invest in Project B, there is a 20% chance that you lose $71,000, a 65% chance that you break even, and a 15% chance that you make $143,000. Based on the expected value of each, which investment should you make?
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This note was uploaded on 04/02/2008 for the course MATH 173 taught by Professor Smith during the Fall '07 term at University of Arizona- Tucson.

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hw4 - Business Mathematics I Homework 3 Prepared for Math...

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