I got part of this wrong can you help me? A rock concert promoter has scheduled an outdoor concert on July 4th. If it do
Posted: Wed Jul 06, 2022 12:20 pm
I got part of this wrong can you help me?
A rock concert promoter has scheduled an outdoor concert on July 4th. If it does not rain, the promoter will make $25,131. If it does rain, the promoter will lose $17,436 in guarantees made to the band and other expenses. The probability of rain on the 4th is .5. (a) What is the promoter's expected profit? Is the expected profit a reasonable decision criterion? (Round your answers to 1 decimal place.) (b) How much should an insurance company charge to insure the promoter's full losses? (Round final answer to the nearest dollar amount.)
p(x) 0.5 and 0.5
a. u(x) 17,592
b. atleast 8,718
A rock concert promoter has scheduled an outdoor concert on July 4th. If it does not rain, the promoter will make $25,131. If it does rain, the promoter will lose $17,436 in guarantees made to the band and other expenses. The probability of rain on the 4th is .5. (a) What is the promoter's expected profit? Is the expected profit a reasonable decision criterion? (Round your answers to 1 decimal place.) (b) How much should an insurance company charge to insure the promoter's full losses? (Round final answer to the nearest dollar amount.)
p(x) 0.5 and 0.5
a. u(x) 17,592
b. atleast 8,718