Cast Iron Company, on each nondelinquent sale, receives revenues with a present value of $1,230 and incurs costs with a value of $1,065. Cast Iron has been asked to extend credit to a new customer. You can find little information on the firm, and you believe that the probability of payment is no better than 0.77. But if the payment is made, the probability that the customer will pay for the second order is 0.94. It costs $15.25 to determine whether a customer has been a prompt or slow payer in the past.
Calculate the minimum probability at which credit can be extended. (round answer 2 decimal places)

Answers

Answer 1

Answer:

[tex]P=0.866[/tex]

Step-by-step explanation:

From the question we are told that:

Present value of iron [tex]x_v=\$1230[/tex]

Present cost of iron [tex]x_c=\$1065[/tex]

Probability of payment [tex]P_p=0.77[/tex]

Probability that the customer will pay for the second order [tex]P_s=0.94[/tex]

Cost of knowing customer status [tex]x_k=\$15.25[/tex]

Generally the equation for Expected probability [tex]E_p[/tex] is mathematically given by

 [tex]E_p=(probability*(revenue-cost)-(1-probability)*present\ value\ of\ cost)[/tex]

 [tex]E_p=(P*(x_v-x_c)-(1-P)*X_c)[/tex]

  Where

  [tex]E_p=0[/tex]

  [tex]P=minimum\ probability\ at\ which\ credit\ can\ be\ extended[/tex]

Therefore

 [tex]0=(P*(1230-1065)-(1-P)*1065)[/tex]

 [tex]165P-1065+1065P=0[/tex]

 [tex]P=\frac{1065}{1230}[/tex]

 [tex]P=0.866[/tex]

Therefore the minimum probability at which credit can be extended is given as

 [tex]P=0.866[/tex]

 [tex]P=86.6\%[/tex]


Related Questions

Find the x-intercept and y-intercept of the line −2x − 2y = −2. Use the intercepts to graph the equation.

Answers

Answer:

Step-by-step explanation:

The x-intercept is 1, the y-intercept is 1. Convert it to slope-intercept form, then plug in 0 for y to find the x-intercept.

Find the area of the rectangle. 7.4 in. , 4.5 in.

Answers

the area is 33.3in squared

Sara claims that the number of pages she has read in her book is proportional to the number of minutes that she has spent reading. She collects several data points to prove her claim and expresses the data points as (x, y) coordinate pairs.

Which of the following actions could Sara take to prove her claim? Select two that apply.

A. Place the coordinate pairs in a table and show that they create equivalent ratios.


B. Use the coordinate pairs to show that an equation of the form y = x + c can be written.


C. List out the coordinate pairs and show that each y–value is a multiple of its associated x–value.


D. Plot the coordinate pairs on a graph and show that the points make a straight line through the origin.

Answers

Answer:

B. Use the coordinate pairs to show that an equation of the form y = x + c can be written. C. List out the coordinate pairs and show that each y–value is a multiple of its associated x–value. D. Plot the coordinate pairs on a graph and show that the points make a straight line through the origin.

Step-by-step explanation:

Answer:

D. Plot the coordinate pairs on a graph and show that the points make a straight line through the origin.

hope it helps have a nice dayyy

14)
a + b = 10
a-b=2
Solve the system of equations.
A)
a = 5. b = 5
B)
a = 2, b = 8
a = 6, b = 4
D
a = 3,6 = 7

Answers

Answer:

a = 6 and b = 4

Step-by-step explanation:

hopefully this makes sense

:)

Write 0.00000000000000000000000000167 as a multiple of a power of 10.

Answers

Answer:

1.67x10^-27

hope this helps

have a good day :)

Step-by-step explanation:

Find the area. Of the triangle

Answers

Answer:

area = 42.8 in²

Step-by-step explanation:

Height = 7 1/8 in

area = 7 1/8 x 12 x 1/2 = 42.8 in²

Find the volume of the following cylinder in cubic inches

Answers

Answer:

Option (1)

Step-by-step explanation:

Volume of a cylinder is given by the formula,

V = πr²h

Here, V = Volume

r = Radius of the circular base

h = Height of the cylinder

From the picture attached,

r = 8 in.

h = 0.5 in.

By substituting these values in the formula,

V = π(8)²(0.5)

  = 32π

  = 32(3.14)

  = 100.48 in³

Therefore, Option (1) will be the correct option.

ILL GIVE BRAINLEST, the table shows how the amount of water in a bathtub changed while the faucet was on. at what average rate did the bathtub fill with water

Answers

The answer is 1.5 gallons per minute

Now that Joseph finally has his own bike, he plans to take good care of it. His local bike store recommends using about a teaspoon of oil to clean the chain every 300 miles. If Joseph rides an average of 200 miles per month, how many months should he expect a 4-fluid-ounce bottle of oil to last?

Answers

The oil should last about 36 months

Answer:

The answer is 36

Step-by-step explanation:

Keri pours 6 glasses of juice. Each glass holds 34 cup. How many cups of juice does Keri pour?

Answers

Answer:

3/4x6=4.5

Step-by-step explanation:

If Keri pours 6 glasses that each contain 3/4 cups than If she where to pour all of them than It would be 3/4*6 to represent the amount of cups to glasses and then the answer would be 4.5 C.

In all glasses combined their will be 4.5 cups of water!

Fractions are written as a ratio of two integers.  If Keri pours 6 glasses of juice, she must have poured 4.5 cups of juice

Ratio and proportions

Fractions are written as a ratio of two integers.


If Keri pours 6 glasses of juice and each glass contains 3/4 cup, hence the total cups of juice poured is expressed as:

Total cups of juice poured = 3/4 * 6

Total cups of juice poured = 4.5

Hence if Keri pours 6 glasses of juice, she must have poured 4.5 cups of juice

Learn more on ratio and proportion here: https://brainly.com/question/19994681

The equation of a line is y = 8x + 2, and the point (3,q) lies on this line.
Determine the value of q

Answers

Answer:

q = 26

Step-by-step explanation:

Given the point (3, q ) lies on the line then the coordinates satisfy the equation.

Substitute x = 3, y = q into the equation

q = 8(3) + 2 = 24 + 2 = 26

Answer:

[tex]\rm q = 26[/tex]

Step-by-step explanation:

Given :-

The equation of a line is y = 8x + 2, and the point (3,q) lies on this line.

And we need to find out the value of q. Since the point lies on the given line , it will be a solution of the line. On substituting the values of x and y , we have ,

Given line :-

[tex]\rm\implies y = 8x + 2 [/tex]

Substituting the respective values :-

[tex]\rm\implies q = 8*3 + 2 \\\\\rm\implies q = 24 + 2 \\\\\rm\implies \boxed{\rm q = 26 }[/tex]

Hence the value of q is 26 .

Which graph represents y=3sqrt x+6-3?

Answers

Answer:

graph for y=3sqrt x+6-3

Step-by-step explanation:

hope this helps :]

What is the answer to 4(10 + 9)

Answers

Answer:

76

Step-by-step explanation:

10+9= 19

19*4=76

Answer:

76

Step-by-step explanation:

1 Simplify  10+910+9  to  1919.

4\times 19

4×19

2 Simplify.

76

76

This is 4 questions so you can get 50 points......

Answers

Answer:

...........................................................................................................................................................................................i really dont know

Step-by-step explanation:

Consider the three isotopes of carbon. What do the three isotopes have in common? Choose all that apply.
A)
They have the same atomic number.
B)
They have the same number of protons.
c)
They all have four valence electrons.
D)
They have the same number of neutrons.
E)
They have the same average atomic mass number,

Answers

Answer:

a) they have the same atomic number.

c) they all have 4 valence electrons.

An auto assemply worker requires 4 electrical fuses for each vehicle. The supplier of the fuses has informed the plant manager that 5% of all the fuses they produce are defective. Assume that the assembly worker selects the 4 fuses for any vehicle at random and independently of each other. If 2 assembled vehicles are selected at random and independently of one another, what is the probability that both vehicles will have all defective fuses

Answers

Answer:

[tex]3.9 \times 10^{-11}[/tex] probability that both vehicles will have all defective fuses

Step-by-step explanation:

For each fuse, there are only two possible outcomes. Either they are defective, or they are not. The probability of a fuse being defective is independent of any other fuse. This means that the binomial probability distribution is used to solve this question.

Binomial probability distribution

The binomial probability is the probability of exactly x successes on n repeated trials, and X can only have two outcomes.

[tex]P(X = x) = C_{n,x}.p^{x}.(1-p)^{n-x}[/tex]

In which [tex]C_{n,x}[/tex] is the number of different combinations of x objects from a set of n elements, given by the following formula.

[tex]C_{n,x} = \frac{n!}{x!(n-x)!}[/tex]

And p is the probability of X happening.

Probability of a vehicle having all defective fuses:

5% of fuses are defective, which means that [tex]p = 0.05[/tex]

A vehicle has 4 fuses, which means that [tex]n = 4[/tex].

This probability is P(X = 4). So

[tex]P(X = x) = C_{n,x}.p^{x}.(1-p)^{n-x}[/tex]

[tex]P(X = 4) = C_{4,4}.(0.05)^{4}.(0.95)^{0} = 0.00000625[/tex]

If 2 assembled vehicles are selected at random and independently of one another, what is the probability that both vehicles will have all defective fuses?

For each vehicle, 0.00000625 probability of having all defective fuses. For 2:

[tex](0.00000625)^2 = 3.9 \times 10^{-11}[/tex]

[tex]3.9 \times 10^{-11}[/tex] probability that both vehicles will have all defective fuses

The two circles shown above have radii of 8 in. and 2 in.

Answers

Answer:

1/4

Step-by-step explanation:

For the first circle 2 x 2in = 4 to find diameter

4 x 3.14 = 12.56

6in x 2 = 12

12 x 3.14 = 37.68

simplify

12.56/37.68

6.28/18.84

3.14/9.42

So the answer is 1/4 since 3.14 x 2 = 6.28

Also since the radius is 2 times longer

Answer:

D

Step-by-step explanation:

Circumference = 2 * pi * r

Circle A / Circle B = 2 * pi * 8 / 2 * pi * 2

You need to take note of the right side. The 2s cancel and so does pi

Circle A/ Circle B = 8/2

Circle A / Circle B = 4/1 = 4

Which is D

An English professor assigns letter grades on a test according to the following scheme. A: Top 9% of scores B: Scores below the top 9% and above the bottom 61% C: Scores below the top 39% and above the bottom 25% D: Scores below the top 75% and above the bottom 10% F: Bottom 10% of scores Scores on the test are normally distributed with a mean of 72.3 and a standard deviation of 8. Find the minimum score required for an A grade. Round your answer to the nearest whole number, if necessary.

Answers

Answer:

The minimum score required for an A grade is 83.

Step-by-step explanation:

Normal Probability Distribution:

Problems of normal distributions can be solved using the z-score formula.

In a set with mean [tex]\mu[/tex] and standard deviation [tex]\sigma[/tex], the z-score of a measure X is given by:

[tex]Z = \frac{X - \mu}{\sigma}[/tex]

The Z-score measures how many standard deviations the measure is from the mean. After finding the Z-score, we look at the z-score table and find the p-value associated with this z-score. This p-value is the probability that the value of the measure is smaller than X, that is, the percentile of X. Subtracting 1 by the p-value, we get the probability that the value of the measure is greater than X.

Mean of 72.3 and a standard deviation of 8.

This means that [tex]\mu = 72.3, \sigma = 8[/tex]

Find the minimum score required for an A grade.

This is the 100 - 9 = 91th percentile, which is X when Z has a pvalue of 0.91, so X when Z = 1.34.

[tex]Z = \frac{X - \mu}{\sigma}[/tex]

[tex]1.34 = \frac{X - 72.3}{8}[/tex]

[tex]X - 72.3 = 1.34*8[/tex]

[tex]X = 83[/tex]

The minimum score required for an A grade is 83.

Millilitre are used to measure the large amount of volume

Answers

Answer:

false

Step-by-step explanation:

HURRY!!!!!!!
Given the number of times I walk around the lake. Find the number of miles I walked around the lake. Note: it is 2.6 miles around the lake, and if I start walking a lap, I must finish the lap because I have to get back to my car. I had to walk ON THE PATH, and cannot go backwards, only forwards. I won't deviate off the path, so it will ALWAYS take 2.6 miles to go around!

Write the function rule, where x is the independent variable, and y is the dependent variable.

a
x=2.6y
b
y=2.6x
c
x=2.6+y
d
y=2.6+x

Answers

Answer:

A. x= 2.6y

Explanation



Trisha packs x boxes with 12 bottles in each box. The total number of bottles she packs is 216. Which equation and solution represent the total number of boxes Trisha packs?
help asap ty :)

Answers

Answer:

Number of boxes Trisha pack = 18 boxes

Step-by-step explanation:

Given:

Number of boxes Trisha pack = X

Number of bottles in each box = 12

Total number of bottle = 216

Find:

Number of boxes Trisha pack

Computation:

Total number of bottle = Number of boxes Trisha pack x Number of bottles in each box

216 = X × 12

X = 216 / 12

X = 18

Number of boxes Trisha pack = 18 boxes

Answer:

okkkkkkkkkkkkkkkkkkkkkkkk

Step-by-step explanation:

. Find the volume of a sphere with a radius of 23 feet. Round your answer to 2 decimal places. [Use pi = 3.14] *

Answers

Answer:

50.965.01

Step-by-step explanation:

Suppose you were trying to gain an understanding of how the very best painter in an automotive factory works. You know that there is only one painter who far outperforms all of the other painters in the factory, and you know that he uses techniques that no one else in the factory uses. What type of data would you want to collect in this situation

Answers

Answer:

Qualitative data

Step-by-step explanation:

Qualitative methods like an interviews and observations that are considered valuable as of their detail, descriptiveness, and uniqueness.

In this given situation,  it is already known that the specific painter who outperforms in the factory.

And my motive is to gain an understanding with respect to the performing as a best painter for an automative industry so the same information would be observed and interviewed him

Find the mean. Round to the nearest tenth. 19, 13, 14, 18, 9, 2, 14.

Mean:

Answers

Answer:

12.7

Step-by-step explanation:

19 + 13 + 14 + 18 + 9 + 2 + 14 = 89

89 / 7 = 12.7142857143

12.7

NEED ANSWER FAST PLEASE
!! Marty keiths annual salary is 56,000 as a computer- aided designer. If the state tax is 4% what does he pay yearly in state taxes?

Answers

Answer:

$3240.Step-by-step explanation:

there is no way to explain it on computer but hope this helps

$2,240

Convert the 4% to a decimal by dividing by 100 = 0.04

56,000 x 0.04 = 2,240

Help me with this please!

Answers

The answer is the first one

!ANSWER ASAP! Explain how to solve 2x + 1 = 9 using the change of base formula log base b of y equals log y over log b. Include the solution for x in your answer. Round your answer to the nearest thousandth.

Answers

Answer:  x = 3

Step-by-step explanation:

Subtract 1

 2^x = 8

Take the log.

 x·log(2) = log(8)

Divide by the coefficient of x.

 x = log(8)/log(2) = log₂(8)

We know that 8 = 2³, so log₂(8) = 3.

 x = 3

_____

If your equation is ...

 2^(x+1) = 9

then

 x + 1 = log(9)/log(2)

 x = log(9)/log(2) -1 . . . . . . change of base formula can be used, but isn't helpful unless you have a calculator that computes log₂(9).

 x ≈ 2.170

The value of x from the logarithmic equation is x = 3

What is Logarithm?

The power to which a number must be increased in order to obtain another number is known as the logarithm. A power is the opposite of a logarithm. In other words, if we subtract an exponentiation from a number by taking its logarithm

The properties of Logarithm are :

log A + log B = log AB

log A − log B = log A/B

log Aⁿ = n log A

Given data ,

Let the logarithmic equation be represented as A

Now , the value of A is

2ˣ + 1 = 9   be equation (1)

On simplifying the equation , we get

Subtracting 1 on both sides of the equation , we get

2ˣ = 8

Now , taking logarithm on both sides of the equation , we get

log ( 2 )ˣ = log ( 8 )

From the laws of logarithm , we can simplify

x log ( 2 ) = log ( 8 )

And , on further simplification , we get

x log ( 2 ) = log ( 2 )³

So , x log ( 2 ) = 3 log ( 2 )

Divide by log ( 2 ) on both sides of the equation , we get

x = 3

Hence , the value of x = 3

To learn more about logarithm click :

https://brainly.com/question/12049968

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ON A RECENT MATH TEST MARY SCORED 14 OF 16 CORRECT. JOHN SCORED 23 OF 26AND JOE SCORED 9 OF 11 CORRECT. WHO ACHIEVED THE HIGHER SCORE?

Answers

Answer:

I think the answer is mary

Answer:

John

Step-by-step explanation:

Mary: 87%-88% (0.875)

John: 88% (0.884)

Joe: 81% (0.818)

Insert the greater than, less than, or equal sign (>, <, or =) to make each statement true.
a. 45⁄45 ____1
b. 1____ 6⁄3
c. 2⁄7 ____1
d. 64⁄23 ____1

Answers

Answer:

a. 45/45 = 1

b. 1 < 6/3

c. 2/7 < 1

d. 64/23 > 1

Directions: identify weather the problem has a minimum or a maximum type an “X” in the box next to your answer

A) y= x^2+2x-1
Minimum or maximum

B) y=-x^2-8x-1
Minimum or maximum

C) y=2x^2+8x

Answers

Answer:

A)   minimum

B)   maximum

C)   minimum

Step-by-step explanation:

A positive x² coefficent means the parabola opens up and the vertex is the minimum

A negative x² coefficent means the parabola opens up and the vertex is the maximum

---------------------------------

A)   minimum

B)   maximum

C)   minimum

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