Competition for new and existing licenses

Assignment Help Basic Computer Science

Reference no: EM131820154

Many cities regulate the number of taxi licenses, and there is a great deal of competition for both new and existing licenses. Suppose that a city has decided to sell 10 new licenses for $25,000 each. A lottery will be held to determine who gets the licenses, and no one may request more than three licenses. Twenty individuals and taxi companies have entered the lottery. Six of the 20 entries are requests for 3 licenses, 9 are requests for 2 licenses, and the rest are requests for a single license. The city will select requests at random, filling as many of the requests as possible. For example, the city might fill requests for 2, 3, 1, and 3 licenses and then select a request for 3. Because there is only one license left, the last request selected would receive a license, but only one.

a. An individual has put in a request for a single license. Use simulation to approximate the probability that the request will be granted. Perform at least 20 simulated lotteries (more is better!).

b. Do you think that this is a fair way of distributing licenses? Can you propose an alternative procedure for distribution?

Reference no: EM131820154

Questions Cloud

How would you execute the arbitrage : You are looking for an arbitrage opportunity. Is there any mispricing here and if so how would you execute the arbitrage?

Construct a table of the estimated probabilities : a. Construct a table of the estimated probabilities for each GPA-probation combination.

How much cash did company receive upon issuance of bonds : Determining the present value of bonds payable and journalizing using the effective-interest amortization method Serenity, Inc. is authorized to issue 5%.

What is the annual operating cash flow : Assume the firm uses straight line depreciation. The firm's marginal tax rate is 30%. What is the annual operating cash flow

Competition for new and existing licenses : Many cities regulate the number of taxi licenses, and there is a great deal of competition for both new and existing licenses. Suppose that a city has decided

How much will net income change : If Coleman buys the component from the outside supplier instead of making it, how much will net income change?

What is the maturity value of the bonds : Analyzing, journalizing, and reporting bond transactions Billy's Hamburgers issued 4%, 10-year bonds payable at 75 on December 31, 2016.

What would be the balances in the center : What would be the balances, at the end of 2014, 2015, and 2016, in the center's (1) permanently restricted endowment fund

Responsibility for a particular part of the project : Four students must work together on a group project. They decide that each will take responsibility for a particular part of the project, as follows:

User Account

All Pages