MAT540 Week 1 Homework
MAT540 Homework Week 1 Page1of3
break-even price Annie might charge?
initial start-up cost for computing equipment, facilities, course development and staff recruitment and development is $400,000. The college plans to charge tuition of $20,000 per student per year. However, the university administration will charge the college $10,000 per student for the first 100 students enrolled each year for administrative costs and its share of the tuition payments.
MAT540 Homework Week 1 Page2of3
c. The college believes it can increase tuition to $25,000, but doing so would reduce enrollment to 50. Should the college consider doing this?
7. The following probabilities for grades in management science have been determined based on past records:
A 0.1 B 0.2 C 0.4 D 0.2 F 0.10
The grades are assigned on a 4.0 scale, where an A is a 4.0, a B a 3.0, and so on. Determine the expected grade and variance for the course.
8. An investment firm is considering two alternative investments, A and B, under two possible future sets of economic conditions good and poor. There is a .60 probability of good economic conditions occurring and a .40 probability of poor economic conditions occurring. The expected gains and losses under each economic type of conditions are shown in the following table:
Using the expected value of each investment alternative, determine which should be selected.
9. The weight of the bags of fertilizer is normally distributed, with a mean of 45 pounds and a standard deviation of 5 pounds. What is the probability that a bag of fertilizer will weigh between 38 and 50 pounds?
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