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The management of a bank in the Caribbean was concerned about the potential loss that might occur in the event of a hurricane. The bank estimated that the loss from one of these storms could be as much as $100 million including losses due to interrupted service and customer relations.
One project the bank is considering is the installation of an emergency power generator at its operations headquarters. The cost of the emergency generator is $800,000, and if it is installed no losses from this type of storm will be incurred.
However, if the generator is not installed, there is a 10% chance that a power outage will occur during the next year. If there is an outage there is a 5% probability that the resulting losses will be very large or approximately $80 million in lost earnings. Alternatively, it is estimated that there is a 95% probability of only slight losses of around $1 million. Using decision tree analysis, determined whether the bank should install the new power generator.
The statewide incidence of gonorrhea is 50 per 100,000 over a 3 month period. Is the number of gonorrhea cases in this county unusual for this time period?
Based on your answers to a through d, decide whether or not to reject the null hypothesis at the given significance level. Explain your conclusion in the context of the problem.
To find out whether two categorical variables are independent, one should use the.
A business has 5 telephone lines. The first rings every minute on the average, the second every ½ minute, the third every 2 minutes, the fourth every 5 minutes,
Imagine you are the CEO of a local bank whose credit card holders engage in 1 billion credit card transactions per year; that the likelihood of a fraudulent transaction is 2%
Is there any statistically significant difference in how the drugs perform? If so, explain the effect. Use the post hoc tests as needed.
The population standard deviation is σ2 = 7. Test that the population means differ using a 1% significance level.
Construct a 95% confidence interval estimate for the population proportion of adults who report that e-mails are easy to misinterpret.
Describe the mean difference that is the main effect for the treatment. Describe the mean difference that is the main effect for gender. Is there an interaction between gender and treatment? Explain the answer
We are interested in determining whether or not the opinions of the individuals (as to Yes, No, and No Opinion) are uniformly distributed.
What is the approximate estimated bootstrap standard error of the median, What is the approximate bias of the median estimated from bootstrapping - What is the bootstrap t confidence interval for the median
With a major expansion planned, Judy projects sales next year to increase to 1,200 radials. What will the demand be each season? Please show work (formulas).
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