A process on a machine has a standard deviation of 0.04 inches. If a product with specifications of +/- 0.07 inches has to be processed on that machine, is the machine capable of performing that job? Group of answer choices

Answers

Answer 1

Answer:

c.) No, because Cp < 1

Step-by-step explanation:

Let us assume that there is centered in the process

and, the width is 2 times the specification

So, the width is

[tex]= 2 \times 0.07[/tex]

= 0.14

Now capability index = Cp is

[tex]= \frac{specification\ width}{6 \times standard\ deviation}\\\\= \frac{0.14}{6\times 0.04}[/tex]

= 0.58333

And the capability index should be minimum 1 for the process

And as we can see that Cp is 0.58333 which is less than 1 so the machine is not able to perform the job

Hene, the correct option is c.


Related Questions

Given the sample mean = 23.375, sample standard deviation = 5.29, and N = 40 for the low income group, Test the claim that the mean nickel diameter drawn by children in the low income group is greater than 21.21 mm. Test at the 0.01 significance level.
a) Identify the correct alternative hypothesis:
A. p > 21.21
B. p < 21.21
C. p = 21.21
D. μ < 21.21
E. μ > 21.21
F. μ = 21.21
Give all answers correct to 3 decimal places
b) The test statistic value is:_______
c) Using the Traditional method, the critical value is:_______

Answers

Answer:

Step-by-step explanation:

a. To identify the alternative hypothesis, we have to examine the claim

The claim is that the mean nickel diameter drawn by children in the low income group is greater than 21.21 mm

Thus, alternative hypothesis is μ > 21.21

b. The test statistics is

z score = x - u /(sd/√n)

Where x (sample mean) is 23.375, u is pop. mean is 21.21, sd is 5.29 and n (sample size) is 40

z = 23.375 - 21.21 /(5.29/√40)

z = 2.165 / (5.29/6.3246)

z = 2.165/0.8364

z = 2.588

c. The critical value is

Alpha for this case study is 0.01. Then the critical probability is 1 - (alpha/2) =

1 - (0.01/2) = 1 - 0.005 = 0.995

To express the critical value as a z score, find the z score corresponding to the critical probability using the z table. Which is 0.8389.

Use the given conditions to write an equation for the line in point-slope form
Passing through (7,3) and (4,4)
OA
1
1.
y-3 = - =(x-
5(x-4) or y-4 = - 3(x - 7)
B.
1
1
y-3= - 3(x-7) or y- 4= - 3(x - 4)
O C. y - 3 = 7(x + 7) or y-4= 4(x-3).
OD
1
1
y + 3 = - 3(x+7) or y+4= - 3(x+4)​

Answers

Answer:

(Y-3)= -1/3(x-7)

Or

(Y-4)= -1/3(x-4)

Steb by step explanation:

The condition for the line is (7,3) and (4,4).

Point slope form of equation is in this format below.

(Y-y1)= m(x-x1)

We have the given parameters in the above format except the m

M = gradient

Gradient= (y2-y1)/(x2-x1)

Gradient=(4-3)/(4-7)

Gradient= 1/-3

Gradient= -1/3

So

(Y-y1)= m(x-x1)

(Y-3)= -1/3(x-7)

Or

(Y-4)= -1/3(x-4)

may someone assist me ?

Answers

Answer:

x = 6

Step-by-step explanation:

I will use some symbols, please refer to the image I attach to understand my answer.

Since BC = 2 using Thales theorem we get that

3/x = 2/4      then 3/x = 1/2    and 6 = x

Solve the equation and give the solution 6x – 3y = 3 –2x + 6y = 14

Answers

Answer:

x=3.9 or 39/10 and   y=3.13333 or 47/15

Step-by-step explanation:

Since both expressions (6x-3y) and (3-2x+6y) are equal to 14, separate the equations:

       6x-3y=14 and 3-2x+6y=14

Simplify the equations

       6x-3y=14 and -2x+6y=11

Now, line the equations up and pick a variable (either x or y) to eliminate

        6x-3y=14

        -2x+6y=11

In this case, let's eliminate y first. To do so make the y values in both equations the same but with opposite signs. Make both be 6y but one is +6y and the other -6y

Multiply (6x-3y=14) by 2 to get:

      12x-6y=28

Line the equations up and add or subtract the terms accordingly

      12x-6y=28

      -2x+6y=11

This becomes:

     10x+0y=39

Isolate for x

   x= 39/10 or x= 3.9

Now substitute the x value into either of the original equations

    6x-3y=14

    6(3.9)- 3y=14

Isolate for y

   23.4-14=3y

   3y= 9.4

  y= 3.1333 (repeating)  or y= 47/15

       

Answer: x = 39/10, y = 94/30

Step-by-step explanation:

6x - 3y = 3 - 2x + 6y,

Now solving this becomes

6x + 2x -3y - 6y = 3

8x - 9y = 3 ------------------- 1

3 - 2x + 6y. = 14

-2x + 6y = 14 - 3

-2x. + 6y = 11

Now multiply both side by -1

2x. - 6y = -11 ----------------- 2

Solve equations 1 & 2 together

8x - 9y. = 3

2x - 6y = -11

Using elimination method

Multiply equation 1 through by 2 ,and equation 2 be multiplied by 8

16x - 18y = 6

-16x - 48y = -88 ------------------------- n, now subtract

30y = 94

Therefore. y = 94/30.

Now substitute for y in equation 2

2x - 6y = -11

2x - 6(94/30) = -11

2x - 94/5 = -11

Now multiply through by 5

10x - 94 = -55

10x = -55 + 94

10x = 39

x = 39/10

Solve the equation 1/3 (x + 1) +2x =2

Answers

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            Hi my lil bunny!

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Let's solve your equation step-by-step.

[tex]\frac{1}{3} (x+1)+2x=2[/tex]

Step 1: Simplify both sides of the equation.

[tex]\frac{1}{3} (x+1)+2x=2[/tex]

[tex](\frac{1}{3}) (x) + (\frac{1}{3} ) (1) + 2x = 2[/tex] (Distribute)

[tex]\frac{1}{3} x + \frac{1}{3} + 2x = 2[/tex]

[tex]( \frac{1}{3} x + 2x ) + (\frac{1}{3}) = 2[/tex] (Combine Like Terms)

[tex]\frac {7}{3} x + \frac{1}{3} = 2\\\frac{7}{3} x + \frac{1}{3} = 2[/tex]

Step 2: Subtract 1/3 from both sides.

[tex]\frac{7}{3} x + \frac{1}{3} - \frac{1}{3} = 2 - \frac{1}{3} \\\\\frac{7}{3} x = \frac{5}{3}[/tex]

Step 3: Multiply both sides by 3/7.

[tex]( \frac{3}{7} ) * (\frac{7}{3}x) = ( \frac{3}{7}) * \frac{5}{3} \\\\x = \frac{5}{7}[/tex]

So the answer is : [tex]x = \frac{5}{7}[/tex]

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Hope this helped you.

Could you maybe give brainliest..?

❀*May*❀

3 = 1/2x + 1/2x + 1/2x.

Answers

Answer:

x =2

Step-by-step explanation:

3 = 1/2x + 1/2x + 1/2x

Combine like terms

3 = 3/2 x

Multiply each side by 2/3 to isolate x

3 * 2/3 = 2/3 * 3/2 x

2 =x

Which Graph represents the solution to the compound inequality 4x +8< -16 or 4x + 8 > 4

Answers

Answer:

option 3

Step-by-step explanation:

4x+8<-16

x<-6

4x+8_>-16

x_>-1

(it's more and equal .so the circle has to be shaded and move to the right of -1)

Answer:C

Step-by-step explanation:

Fill in the blank. A​ _______ variable is a variable that has a single numerical​ value, determined by​ chance, for each outcome of a procedure.

Answers

Answer:

Random variable

Step-by-step explanation:

The reason it is a random variable is because a, the definition fits, and b you can use context clues as well, such as 'determined by chance' which is another example of random! So, the answer is random, because random variables are determined by chance. Hope this helped.

Answer:

"A random variable is a variable that has a single numerical value, determined by chance, for each outcome of a procedure."

A random variable is distinct on the off chance that it takes on a countable number of quantities.

if the focus of an ellipse are (-4,4) and (6,4), then the coordinates of the enter of the ellipsis are

Answers

Answer:

The center is (1,4)

Step-by-step explanation:

The coordinates of the center of an ellipse are the coordinates that are in the middle of the two focus.

Then if we have a focus on [tex](x_1,y_1)[/tex] and [tex](x_2,y_2)[/tex], we can say that the coordinates for x and y can be calculated as:

[tex]x=\frac{x_1+x_2}{2}\\ y=\frac{y_1+y_2}{2}[/tex]

So, replacing [tex](x_1,y_1)[/tex] by (-4,4) and [tex](x_2,y_2)[/tex] by (6,4), we get that the center is:

[tex]x=\frac{-4+6}{2}=1\\ y=\frac{4+4}{2}=4[/tex]

Find the unknown side length x write your answer in simplest radical form
A.24
B.4squareroot37
C.2squareroot154
D.5squareroot117

Answers

Answer:

(B)[tex]4\sqrt{37}[/tex]

Step-by-step explanation:

First, we determine the height of the triangle which we label as y.

Using Pythagoras Theorem.

[tex]25^2=7^2+y^2\\y^2=25^2-7^2\\y^2=576\\y=\sqrt{576}\\y=24[/tex]

In the smaller right triangle with hypotenuse, x

Base = 7-3 =4 Units

Height, y= 24 Units

Therefore, applying Pythagoras Theorem.:

[tex]x^2=24^2+4^2\\x^2=592\\x=\sqrt{592}\\ x=4\sqrt{37}[/tex]

How many odd 2 digit positive odd integers geater than 50 are there?

Answers

Answer:

25

Step-by-step explanation:

Let's break this down step by step:

"2 digit positive odd integers greater than 50"

So we start at 50

Don't exceed 99 since 2-digit limit

Any 2-digit integer greater than 50 will be positive (So that's a redundant statement)

Well...we know that from 50-99, is 50 integers counting by ones.

We know that half will be even and half will be odd.

With this we can say 50/2 == 25

Hence, there are 25 2 digit positive odd integers greater than 50.

Cheers.

15. A manufacturer of electronic calculators is interested in estimating the fraction of defective units produced. A random sample of 800 calculators contains 10 defectives. a. Formulate and test the hypothesis to determine if the fraction defective exceeds 0.01. Use 0.05 significance level. b. Calculate a 95% CI for this problem. Does the CI agreed with your result on (a) explain.

Answers

Answer:

a

   The Null hypothesis is  [tex]H_o : p = 0.01[/tex]

   The defect did not exceed 0.01

b

   The  95%  confidence interval is   [tex]0.004801 < p < 0.020199[/tex]

   Yes the CI agrees with the result in a  because the value 0.01 fall within the CI

Step-by-step explanation:

From the question we are told that

     The sample size is  n = 800

      The number of defective calculators is  k =  10

       The population is  [tex]p = 0.01[/tex]

The Null hypothesis is  [tex]H_o : p = 0.01[/tex]

The Alternative hypothesis is  [tex]H_a : P> 0.01[/tex]

Generally the proportion of defective calculators is mathematically represented as

         [tex]\r p = \frac{k}{n}[/tex]

substituting values

          [tex]\r p = \frac{10}{800}[/tex]

          [tex]\r p = 0.0125[/tex]

Next is to obtain the critical value of  [tex]\alpha[/tex] from the z-table.The  value is  

          [tex]Z_{\alpha } = 1.645[/tex]

Now the test statistics is mathematically evaluated as

        [tex]t = \frac{\r p - p }{ \sqrt{ \frac{p (1- p )}{n} } }[/tex]

substituting values

          [tex]t = \frac{ 0.0125 - 0.01 }{ \sqrt{ \frac{0.01 (1- 0.01 )}{800} } }[/tex]

           [tex]t = 0.71067[/tex]

Now comparing the values of  t to the value of [tex]Z_{\alpha }[/tex] we see that [tex]t < Z_{\alpha }[/tex] hence we fail to reject the null hypothesis

Generally the margin of error is mathematically represented as  

       [tex]E = Z_{\frac{\alpha }{2} } * \sqrt{\frac{\r p (1-\r p )}{n} }[/tex]

where  [tex]Z_{\frac{\alpha }{2} }[/tex] is the critical value of  [tex]\frac{\alpha }{2}[/tex] which is obtained from the z-table.The  value is

              [tex]Z_{\frac{\alpha }{2} } = Z_{\frac{0.05 }{2} } = 1.96[/tex]

The reason we are obtaining critical value of    [tex]\frac{\alpha }{2}[/tex]  instead of    [tex]\alpha[/tex] is because    [tex]\alpha[/tex]

represents the area under the normal curve where the confidence level interval (   [tex]1- \alpha[/tex] ) did not cover which include both the left and right tail while  

 [tex]\frac{\alpha }{2}[/tex]  is just the area of one tail which what we required to calculate the margin of error .

NOTE: We can also obtain the value using critical value calculator (math dot armstrong dot edu)

So

      [tex]E = 1.96 * \sqrt{\frac{ 0.0125 (1-0.0125 )}{800} }[/tex]

     [tex]E = 0.007699[/tex]

The  95%  confidence interval is mathematically represented as

       [tex]\r p - E < p < \r p - E[/tex]

substituting values

      [tex]0.0125 - 0.007699 < p < 0.0125 + 0.007699[/tex]

      [tex]0.004801 < p < 0.020199[/tex]

Now given the p = 0.01 is within this interval then the CI  agrees with answer gotten in a

6th grade math , help me please:)

Answers

Answer:

(a) $7/ticket

(b) 3 cats/dog

(c) 10 ft/sec

(d) 16 cups/gal

Step-by-step explanation:

(a) $35 for 5 tickets

$35/(5 tickets) = $7/ticket

(b) 21 cats and 7 dogs

21 cats/(7 dogs) = 3 cats/dog

(c) 40 ft in 4 seconds

40 ft/(4 sec) = 10 ft/sec

(d) 48 cups for 3 gallons

48 cups/(3 gal) = 16 cups/gal

You take one ball randomly from a bag with 10 yellow, 5 orange and 5 green balls. What is the probability that you take a yellow ball.
1

1/4

10/15
1/2

Answers

Answer:

1/2

Step-by-step explanation:

The probability of taking a yellow ball can be found by dividing the number of yellow balls over the total number of balls.

P(yellow ball)= yellow balls / total balls

There are 10 yellow balls. There are a total of 20 balls. There are 20 because there are 10 yellow, 5 orange, and 5 green. When 10, 5, and 5 are added, the result is 20.

yellow balls = 10

total balls= 20

P(yellow ball)= yellow balls / total balls

P(yellow ball)= 10/20

The fraction 10/20 can be simplified. Both the numerator( top number) and denominator (bottom number) can be evenly divided by 10.

P(yellow ball)= (10/10) / (20/10)

P(yellow ball)= 1/(20/10)

P(yellow ball)= 1/2

The probability of taking a yellow ball is 1/2.

3.01)Which statement best describes the area of the triangle shown below?
9
It is one-half the area of a rectangle of length 4 units and width 2 units.
It is twice the area of a rectangle of length 4 units and width 2 units.
O It is one-half the area of a square of side length 4 units.
Ont is twice the area of a square of side length 4 units.

Answers

Answer:

C. It is one-half the area of a square of side length 4 units.

Step-by-step explanation:

Hey there!

Well if a square has side lengths of 4 units,

the area would be 16 because of l*w.

Now the formula for the area of a triangle is,

b*h/2

b = 4

h = 4

4*4=16

16 ÷ 2 = 8

So the area of a square is 16 units^2 whereas the area of a triangle with the same dimensions is 8 units^2,

meaning the area of a triangle is one-half the area of a square.

Hope this helps :)

A study is done to see if the average age a "child" moves permanently out of his parents' home in the United States is at most 23. 43 U.S. Adults were surveyed. The sample average age was 24.2 with a standard deviation of 3.7. The p-value is

Answers

Answer:

The p-value is 2.1%.

Step-by-step explanation:

We are given that a study is done to see if the average age a "child" moves permanently out of his parents' home in the United States is at most 23. 43 U.S. Adults were surveyed.

The sample average age was 24.2 with a standard deviation of 3.7.

Let [tex]\mu[/tex] = true average age a "child" moves permanently out of his parents' home in the United States.

So, Null Hypothesis, [tex]H_0[/tex] : [tex]\mu \leq[/tex] 23      {means that the average age a "child" moves permanently out of his parents' home in the United States is at most 23}

Alternate Hypothesis, [tex]H_A[/tex] : [tex]\mu[/tex] > 23      {means that the average age a "child" moves permanently out of his parents' home in the United States is greater than 23}

The test statistics that will be used here is One-sample t-test statistics because we don't know about population standard deviation;

                            T.S.  =  [tex]\frac{\bar X-\mu}{\frac{s}{\sqrt{n} } }[/tex]  ~ [tex]t_n_-_1[/tex]

where, [tex]\bar X[/tex] = sample average age = 24.2

            s = sample standard deviation =3.7

            n = sample of U.S. Adults = 43

So, the test statistics =  [tex]\frac{24.2-23}{\frac{3.7}{\sqrt{43} } }[/tex]  ~  [tex]t_4_2[/tex]

                                    =  2.127

The value of t-test statistics is 2.127.

Now, the p-value of the test statistics is given by;

         P-value = P( [tex]t_4_2[/tex] > 2.127) = 0.021 or 2.1%

Farid is baking muffins, The recipe calls for 3/4 cup of sugar for a full batch. Farid is making 1/2 of a batch. Write an expression for the amount of sugar Farid needs to make 1/2 of a batch of muffins. WILL GIVE BRAINLIEST, THANKS, AND FIVE STARS PLZ HELP ME

Answers

Answer:

y = 3/8x

or

3/8 cups of sugar for every 1/2 batch of muffins

Step-by-step explanation:

Since we are only making 1/2 of the full batch of muffins, we only need to use 1/2 the cups of sugar:

[tex]\frac{3}{4} (\frac{1}{2} )= \frac{3}{8}[/tex] cups of sugar.

Answer:

[tex]\frac{x}{2} = \frac{3y}{8}[/tex]

Step-by-step explanation:

Let the batch be x and the amount of sugar be y

Condition:

x = [tex]\frac{3}{4} y[/tex]

Multiplying both sides by 1/2

[tex]\frac{1}{2} x = \frac{3}{4}y * \frac{1}{2}[/tex]

[tex]\frac{x}{2} = \frac{3y*1}{4*2}[/tex]

[tex]\frac{x}{2} = \frac{3y}{8}[/tex]

So, For 1/2 batch of muffins, Farid need 3/8 cups of sugar.

find the exact value of sin 0

Answers

Answer:

12/13

Step-by-step explanation:

First we must calculate the hypotenus using the pythagoran theorem

5²+12² = (MO)² MO = [tex]\sqrt{5^{2}+12^{2} }[/tex] MO = 13

Now let's calculate sin0

sin O = 12/13

So the exact value is 12/13

Answer:

C.) 12/13

Step-by-step explanation:

In a right angle triangle MN = 12, ON = 5 and; angle N = 90°

Now,

For hypotenuse we will use Pythagorean Theorem

(MO)² = (MN)² + (ON)²

(MO)² = (12)² + (5)²

(MO)² = 144 + 25

(MO)² = 169

MO = √169

MO = 13

now,

Sin O = opp÷hyp = 12÷13

A graph shows an x- and y-axis. The data line is in the shape of a "vee." The begins above the x-axis and to the left of the y-axis, extends below the x-axis to a point on the y-axis, and ascends above the x-axis to the right of the y-axis. Which statement describes the relationship between x and y? As x increases, y decreases. As x increases, y increases. As x increases, y increases and then decreases. As x increases, y decreases and then increases.

Answers

Answer:

  As x increases, y decreases and then increases

Step-by-step explanation:

You need only understand your own description of the graph:

  begins above the x-axis, extends below the x-axis, and ascends above the x-axis

This is a description of decreasing, then increasing:

  As x increases, y decreases and then increases

Answer:

C. As x increases, y increases and then decreases.

Step-by-step explanation:

Just took the Unit Test and got it correct on Edge.

Which of the following answer choice is a possible solution to the inequality 4y>10?
A. 7
B. 1/4
C. 2
Please prove your answer.

Answers

Answer:

7 is the answer

Step-by-step explanation:

if we put 1/4 or 2 then the statement will wrong so 7 is the right answer

Answer:

A

Step-by-step explanation:

If 4A (7) is greater than 10, then 4x7=28. 28 is greater than 10.

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Hope this helps you...

If the payment is not made on the credit card by the end of the grace period,
which of the following will occur?

Answers

Answer: C. Interest will be charged

Step-by-step explanation:

Answer:

Step-by-step explanation:

Interest will be charged is your answer!

A fair die is rolled two times. What is the probability that both rolls are 6?

Answers

Answer:

1/36

Step-by-step explanation:

the fair die has 6 equal parts which means its the total

the probability of rolling a 6 is 1/6

the probability of rolling another 6 is 1/6

so u multiply 1/6 times 1/6 which is 1/36

hope this helps

Hey there

To make it perfectly clear, consider the sample space for rolling a die twice. There are 36 equally likely possible outcomes, 6 of which define the event "rolling the same number two times in a row". Then, the probability of this event occurring is 636, which is equal to 16.Hope this hope

Let f(x) = -2x - 7 and g(x) = -4x + 6. Find (f o g)(-5)

Answers

It’s probably-67 on the top of my head

A rectangular garden is 20 ft longer than it is wide. Its area is 3500 ft?. What are its dimensions?
Its width equals
Preview
and its length equals

Answers

Answer:

width of the garden is 50 ft and the length is 70 ft

Step-by-step explanation:

Solution:-

- We will denote the width and and the length of the rectangular garden as:

   Width: x

   Length: x + 20

- We are given the area ( A ) of the garden is 3500 ft^2. We are to determine for what dimensions is the area A = 3500 ft^2.

- Recall that the area ( A ) of a rectangle is the product of length and width as follows:

                      A = Length * width

                      A = x*( x + 20 )

                      3500 = x^2 + 20x

                      x^2 + 20x - 3500 = 0

- Use the quadratic formula to determine the value of ( x ):

                     [tex]x = \frac{-b +/- \sqrt{b^2 - 4ac} }{2a} \\\\x = \frac{-20 +/- \sqrt{20^2 - 4*-3500} }{2}\\\\x = \frac{-20 +/- 120 }{2} = -10 +/- 60\\\\x = -70 , 50[/tex]

- Ignore the negative value of ( - 70 ft ). Physical impractical to have a negative value. Hence, the width of the garden is 50 ft and the length is 70 ft

Answer question 18 or 19 in the image thank you and please help

Answers

Answer:

19)

[tex]\frac{1}{2}*\frac{1}{4}*\frac{1}{8}*\frac{1}{16} = 2^n[/tex]

Notice that in the left side, all the numbers are powers of 2.

2 = 2^1

4 = 2^2

8 = 2^3

16 = 2^4

remember that:

(a^x)*(a^y) = a^(x+y)

then the denominator in the left is:

(2*4*8*16) = 2*(2^2)*(2^3)*(2^4) = 2^(1 + 2 + 3+ 4) = 2^8

Then we have:

[tex]\frac{1}{2}*\frac{1}{4}*\frac{1}{8}*\frac{1}{16} = \frac{1}{2^8} = 2^n[/tex]

[tex]1 = 2^8*2^n = 2^{8 + n}[/tex]

then 8 + n = 0

then n = -8.

18)

here we have:

x = (x/9) + (x/6) + (x/2) + 4 + (x/12) + 2

now in the left side we can use the common factor x and write it as:

x = x*( 1/12 + 1/9 + 1/6 + 1/2) + 6

x = x*(0.861) + 6

x - x*(0.861) = 6

x*(1 - 0.861) = 6

x = 6/(1 - 0.861) = 43.2

Perform the indicated operation. kyz * 1/kyz answer choices is 0 1 and k^2 y^2 z^2

Answers

Answer:

1

Step-by-step explanation:

[tex]\frac{kyz}{1}*\frac{1}{kyz} =\frac{kyz}{kyz}=1[/tex]

a scale drawing of a rectangular playground has a length of 20 inches and a width of 10 inches as shown below. the scale is 1 inch = 4 feet. what is the area of the actual playground? *

Answers

Answer:

3200ft^2

Step-by-step explanation:

1 inch = 4ft

so 20 inches = 80ft

and 10 inches = 40ft

Area = 80ft*40ft

Area = 3200ft^2

Fill in the blanks.

(x+_)^2=x^2+14x+_

Answers

Step-by-step explanation:

(ax + b)² = a²x² + 2abx + b²

In this case, a = 1, so:

14 = 2b

b = 7

(x + 7)² = x² + 14x + 49

Please help. What is the equation of the line that has a slope of 3 and goes through the point (-3,-5)?

Answers

Answer:

y = 3x + 4

Step-by-step explanation:

We can use the equation y = mx + b to find the equation:

Plug in the slope and the point into the equation, and we can find b:

-5 = 3(-3) + b

-5 = -9 + b

4 = b

Now, we can plug in the slope and y-intercept into the equation:

y = 3x + 4 will be our equation

You are looking to invest in several different real estate deals. You have received ceconomic reports that explain the probability of good economic conditions will be .6 and .4 for bad economic conditions. Below is the Payoff Table, and after calculating the expected value for each decision, you determine the best "payoff deal is:
Good Economic Bad Economic
Conditions Condition (.60) Conditions (.40)
Apartment Building 50,000 30,000
Office Building $100,000 $-40,000
Warehouse 30,000 $10,000
A. Apartment Building
B. Office Building
C. Warehouse
D. None of the above.

Answers

Answer:

Real Estate Deals

The best "payoff deal:"

B. Office Building

Step-by-step explanation:

A) Payoff Table

                                  Good Economic         Bad Economic

                                     Conditions                 Conditions

Probability                          (.60)                          (.40)

Apartment Building         $50,000                    $30,000

Office Building               $100,000                   $-40,000

Warehouse                     $30,000                     $10,000

B) Calculation of Expected Values:

                             Good Economic      Bad Economic    Expected Values

                                  Conditions          Conditions

Probability                       (.60)                    (.40)

Apartment Building     $30,000             $12,000             $42,000

Office Building            $60,000            $-16,000             $44,000

Warehouse                  $18,000               $4,000            $22,000

b) The expected value for these real estate deals can be derived as the sum of the payoffs under the two economic conditions after they have been weighed with their odds of occurrence.  The office building, in this example, showed the best payoff deal as the expected payoff from it results to a payoff of $44,000, which is higher than the expected payoff from the Apartment and Warehouse.  However, it is also the riskiest, especially when bad economic conditions occur.  This also accords with the general economic risk-return pattern that higher risky investments attract higher returns.

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