What assumption must you make to find the variance

Assignment Help Microeconomics
Reference no: EM131523957

Question: A company owns two different computers, which are in separate buildings and operated entirely separately. Based on past history, Computer 1 is expected to break down 5.0 times a year, with a variance of 6, and costing $200 per breakdown. Computer 2 is expected to break down 3.6 times per year, with a variance of 7, and costing $165 per breakdown. What is the company's expected cost for computer breakdowns and the variance of the breakdown cost? What assumption must you make to find the variance? Is this a reasonable assumption?

Reference no: EM131523957

Questions Cloud

Consider a group of open economies : 1. Consider a group of open economies; assume perfect capital mobility.
The position of ethics in a world of progressive technology : Bioethics is the the study of the position of ethics in a world of progressive technology and medicine.
Total-revenue-total-cost approach : Explain how purely competitive firms can use the total-revenue-total-cost approach to maximize profits or minimize losses in the short run.
Compute the expected annual rate of return for the strategy : Your strategy is to sell the stock at that time. Compute the expected annual rate of return for the strategy.
What assumption must you make to find the variance : A company owns two different computers, which are in separate buildings and operated entirely separately. Based on past history, Computer 1 is expected.
The framework for analyzing the moral foundations : Principalism is the framework for analyzing and comparing the moral foundations of the ethical statements of these health-related professional associations.
Employees is a key employee : Which of the following employees is a key employee for 2016?
Regulation of business relationships : Why is the issue of insolvency an important factor in the regulation of business relationships?
Budget without hurting performance : How the organization Cut Its Budget Without Hurting Performance?

Reviews

Write a Review

Microeconomics Questions & Answers

  Producer would increase the quantity supplied

Provide an example of an economic good whose producer would increase the quantity supplied if the price were to go up. Summarize why the quantity would increase in your response.

  Find the p-value associated with the test

Assuming that the requirements for a one-way layout are met, analyze the data. State whether there is statistical support at the α = .05 level of significance for the conclusion that at least one of the concretes differs in average strength from t..

  Summarize and analyze an example from the news

Often the public role is a part-time one, and engineers who accept such assignments will also have full-time jobs as employees or owners of engineering ?rms. What are some of the ethical issues that can arise from con?icts between the public- and p..

  Construct a table showing the marginal revenue product

Construct a table showing the (net) marginal revenue product derived from assembly worker employment and how many assemblers would Just Bikes employ at a daily wage rate of $100? Explain your answer and show all calculations.

  Show the calculations that lead to the conclusions

If the firm has $20,000 on hand, with only these two project to choose from, will they invest in A, B, neither or both? Show the calculations that lead to your conclusions. Explain whether you answers would be different for either project if the f..

  Explain the consumer debt and home equity debt

The Tax Reform Act of 1986 eliminated the deductibility of interest payments on consumer debt mostly credit cards and auto loans but maintained the deductibility of interest payments on mortgages and home equity loans.

  Decide the demand function and inverse demand function

Decide the demand function and inverse demand function for good X. Indicate whether goods Y and Z are substitutes or complements for good X? Is X an inferior or a normal good? How many units of good X will be purchased when Px=4900?

  What are challenges of facilitating legal border crossings

Explain "open markets and closed borders" as it pertains to smuggling, free trade, and border enforcement and what are the challenges of facilitating legal border crossings while maintaining secure borders?

  Does pnc have a dominant strategy

Does PNC have a dominant strategy? What is it? Does Citizens have a dominant strategy and Does the result of your answer change if the game is played an infinite number of times?

  Impact the money supply

Explain how the following would impact the money supply: a. People decide to hold more cash b. Banks hold more excess reserves c. The Fed decreases the required reserve rate d. The Fed increases the discount rate

  How gross domestic product affected recession

Briefly Explain how the Gross Domestic Product (GDP) affected the recession in the United States throughout the late President Bush and early President Obama years.

  What should happen with per unit average variable cost

If you assume the Law of Diminishing Marginal Returns is true, what should happen with per unit average variable cost as output increases?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd