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Unformatted text preview: 2 0.2 0.1 0.3 3. Probability (1 sale on Day 1 or 2 sales on Day2) 4. Given that there is 1 sale on Day 1, what is the probability that there will be at least 1 sale on Day 2? Prob Answers Answers (Calculations) 1. P(x=0 and Y=0) 0.1 2. P( X>= 1) 0.8 (.5+.3) 3. P( X=1 or Y=2) 0.6 (.5 +.3  .2) 4. P(Y>=1  X = 1) 0.8 (.2+.2)/.5 Additional Answers Solution Day1 Profit = Revenue  Costs = 35X  (20X + 3) = 15X 3 and Day 2 Profit = Revenue  Costs = 35Y  (20Y + 3) = 15Y 3 Total Profit Day 1 & 2 = 15X 3 + 15Y 3 = 15X + 15Y  6 Want E(Profit Day 1& 2) = E(15X + 15Y  6 ) = E(15X) + E(15Y)  6 = 15E((X) + 15E(Y)  6 = 15(1.1) +15(1.1)  6 = 27 So, expected profit from day 1 and 2 sales is $27,000 Additional Question: (v) Suppose that each tractor sold has a selling price of $35,000 and a cost of $20,000. Also assume that daily overhead costs are $3,000 per day. Determine the average profit over the two day period....
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 Winter '09
 Brian
 Standard Deviation, Variance, Probability theory, daily overhead costs

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