Mathematics, 10.03.2020 08:13 11AnimalLover11
A rock concert promoter has scheduled an outdoor concert on July 4th. If it does not rain, the promoter will make $30,000. If it does rain, the promoter will lose $15,000 in guarantees made to the band and other expenses. The probability of rain on the 4th is 0.4.
(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?
Answers: 2
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Answers: 2
A rock concert promoter has scheduled an outdoor concert on July 4th. If it does not rain, the promo...
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