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

Evaluate each limit given that limit x->2 f(x)=9.

limit x->2 1/3[f(x)]^2= 27✔️
limit x->2 3f(x)+5= 32✔️
limit x->2 [f(x)]3/2= 27✔️

Answers

Answer:

27

32

27

Step-by-step explanation:

1) limit x->2 1/3[f(x)]^2= 27

2) limit x->2 3f(x)+5= 32

3) limit x->2 [f(x)]3/2= 27/2

What is limit?

"A limit is the value that a function approaches as the input approaches some value."

Limit properties:

If limit f(x) = m and constant 'a',

limit a (f(x)) = a × m

limit (f(x))^n = (m)^n

limit (a) = a

limit (f(x) + a) = m + a

Given: limit x->2 f(x)=9.

We need to evaluate each limit.

1) limit x->2 1/3[f(x)]^2

⇒ [tex]\lim_{x \to 2} \frac{1}{3} (f(x))^2[/tex]

= [tex]\frac{1}{3} \lim_{x \to 2} (f(x))^2[/tex]

= [tex]\frac{1}{3} (\lim_{x \to 2} f(x))^2[/tex]

= [tex]\frac{1}{3} \times (9)^2[/tex]

= [tex]\frac{81}{3}[/tex]

= 27

2) limit x->2 3f(x)+5

⇒ [tex]\lim_{x \to 2} (3f(x)+5)[/tex]

= [tex]\lim_{x \to 2} 3f(x)+ \lim_{x \to 2} 5[/tex]

= [tex]3\lim_{x \to 2} f(x) + 5[/tex]

= [tex](3 \times 9)+5[/tex]

=[tex]\bold{32}[/tex]

3) limit x->2 [f(x)]3/2

⇒ [tex]\lim_{x \to 2} (f(x))\frac{3}{2}[/tex]

= [tex]\frac{3}{2} \times (\lim_{x \to 2} f(x))[/tex]

= [tex]\frac{3}{2} \times 9[/tex]

= 27/2

Learn more about limit here:

https://brainly.com/question/1619243

#SPJ2

Henry is mixing concrete.To make
concrete he needs to mix cement,
sand and gravel in the ratio 4:3:1 by
weight. Henry needs to make 120 kg
of concrete. He has 65 kg of cement,
40 kg of sand and 15 kg of gravel.
Which ingredient is Henry short of?

Answers

Answer:

Sand

Step-by-step explanation:

120kg = (4 + 3 + 1) units = 8 units

1 unit = 120 ÷ 8 = 15kg

Calculating required quantities:

Cement: 4 units = 4(15) = 60kg

Sand: 3 units = 3(15) = 45kg

Gravel: 1 unit = 1(15) = 15kg

Comparing these values to those given in the question, he is short of sand.

2) Justin works at supermarket and regularly earns $10.50 per hour. In the past five
days, his time card shows that he worked 5.3, 3.4, 6.0, 5.5, and 5.3 hours. What is his
gross pay?

Answers

If 1 hour is $10.50

5.3X10.5=$55.65
3.4X10.5=$35.7
6.0X10.5=$63.0
5.5X10.5=$57.75
There gross pay is the summation of the four earnings =$212.10

If 4 television weigh 160 pounds , how much do 5 of those television weigh? Show your work

Answers

Answer:

200 pounds

Step-by-step explanation:

4 televisions weigh 160 pounds

1 television weigh 40 punds

5 televisions weigh 200 pounds

Answer:

Logically 200 lbs

Step-by-step explanation:

160/4 = 40

1TV = 40 lbs

40 * 5 = 200

200lbs...

help me on this plz and thank you

Answers

By solving for x you get x=6

Answer:

x = 6

Step-by-step explanation:

12x = 72

72/12 = 6

x = 6

PLEASE HELP ME! IS THIS CORRECT?

Answers

Answer:

yes

Step-by-step explanation:

Yup it’s very correct

How long will it take the skier to travel 360 meters? Explain how you figured it out.

Answers

20 seconds, I did 72/4=18 then 360/18=20 so a skier travels for 20 seconds and covers 360 meters

Hey does anyone please can help me with this

Answers

Answer:

Step-by-step explanation:

41. How would the graph of the function
y=x2- 3 be affected if the function were
changed to y=x2 + 2?
A. The graph would shift 2 units up.
B. The graph would shift 5 units up.
C. The graph would shift 5 units down.
D. The graph would shift 1 unit up,

Answers

Answer:

B. The graph would shift 5 units up.

Step-by-step explanation:

Before the change:

Before the change, the function was given by:

[tex]y = x^2 - 3[/tex]

After the change:

After the change, the function was given by:

[tex]y = x^2 + 2[/tex]

Considering the function as it was before the change, it can also be written as:

[tex]y = x^2 - 3 + 5[/tex]

Which means that 5 was added to the function, and when a number n is added to a function, there function is shifted n units up. So the correct answer to this problem is given by option B.

Use a permutation expression to solve.

In a race of 39 people, how many different ways can the runners place in 1st, 2nd, and 3rd?

9,139

18,278

54,834

59,319

Answers

Answer:

C. 54,834

Step-by-step explanation:

Took the test

If you borrow $900 for 4 years at an
annual interest rate of 5%, how
much will you pay altogether?

Answers

Answer:

$995.04

Step-by-step explanation:

You pay $20.73 every month. $20.73 x 48 = $995.04

Answer:

i am going to assume that for interest you mean simple interest.

900*5%*4=180

180+900=1080.

if you mean compound interest...

900*(1+5%)^4=1094.0 (1.d.p)

Find the area of the parallaogram to the nearest tenth

Answers

Answer:

sorry I think yr question is incomplete.

u forget to add picture.

stay safe healthy and happy.

Plz help me well mark brainliest if correct!!...

Answers

Answer:

A/5

Step-by-step explanation:

There are 2 people after 5 in the the 4| part and 3 under 6 in the 5| part.

Which sentence is punctuated correctly?




A) For breakfast we had bacon, and eggs, fruit juice, and cereal.

B) The novelist wrote poetry, short , stories and plays about her childhood in North Dakota .

C) The bank has branches in downtown Portland Beaverton Milwaukie , and Vancouver .

D) The athlete won the triathlon by running, a marathon , swimming two miles, and bicycling around the island.

Answers

Answer:

A) For breakfast we had bacon, and eggs, fruit juice, and cereal.

Hope this helps!!

Each quarter the marketing manager of a retail store divides customers into two classes based on their purchase behavior in the previous quarter. Denote the classes as L for low and H for high. The manager wishes to determine to which classes of customers he should send quarterly catalogs. The cost of sending a catalog is $15 per customer and the expected purchase depends on the customer’s class and the manager’s action. If a customer is in class L and receives a catalog, then the expected purchase in the current quarter is $20, and if a class L customer does not receive a catalog his expected purchase is $10. If a customer is in class H and receives a catalog, then his expected purchase is $50, and if a class H customer does not receive a catalog his expected purchase is $25. The decision whether or not to send a catalog to a customer also affects the customer's classification in the subsequent quarter. If a customer is class L at the start of the present quarter, then the probability he is in class L at the subsequent quarter is 0.3 if he receives a catalog and 0.5 if he does not. If a customer is class H in the current period, then the probability that he remains in class H in the subsequent period is 0.8 if he receives a catalog and 0.4 if he does not. Assume a discount rate of 0.9 and an objective of maximizing expected total discounted reward.
a) Formulate this as an infinite-horizon discounted Markov decision problem.
b) For ???? = 0.1, find a near-optimal policy using value iteration.
c) Find an optimal policy using policy iteration starting with the stationary policy which has greatest one-step reward.
d) Formulate the problem as a linear program, giving its primal and dual. Solve both and interpret the solutions.

Answers

Answer:

55

Step-by-step explanation:

Angle Relationships

When solving for x, the sine of 44° is used. What other angle and trigonometric function could be used to solve for x?

a. tan 46°
b. cos 46°
c. tan 44°
d. cos 44°

Please select the best answer from choices provided

Answers

Answer:

B. cos 46°

Step-by-step explanation:

I calculated it logically

Answer:

b. cos 46

Step-by-step explanation:

There are three angles to choose from since there are three angles in a triangle. Of these, the 90° angle can't be used (90° angles don't work with trigonometric ratios), and neither can the 44° (we're told to use a different one from this), so we're left with the unmarked angle on the bottom right. Since the angles in a triangle add to 180, and the other two angles total 134 (90+44=134), we can say this angle is 46°.

Since cos46 is our only option that involves this angle (and since cos46=x/9), this is the option which could be used to find x.

Select the correct answer. Consider functions fandg f(3) = 5.2.1, for 3 + 2 and = + -6 4:2 – 16: + 16 96) = 4+ 48, for : * -12 Which expression is equal to 10) (+? OA . OB. 1 Ос. OD. 5+2 6​

Answers

Answer:

A

Step-by-step explanation:

Henry is fishing from a small boat. His fishing hook is in the water 8 meters directly below his boat. A fish is swimming at the same depth as the hook, however it is 15 meters away from the hook. What is the shortest distance between Henry and the fish?

Answers

Answer: 17

Step-by-step explanation:

please help if u can

Answers

Answer:

x = 11.74739484

Step-by-step explanation:

To solve this problem, you can use trig functions. We are given an angle and the side next to it, and we are looking for the side opposite it. The perfect trig function to use for this would be tangent:

tan(θ) = opposite / adjacent

We can substitute the values we already have:

tan(40) = x / 14

x = 14 * tan(40)

We can evaluate this using a calculator and get:

x = 11.74739484

Curts kite is 36 yards above the ground and directly above the tree. The length of the string from Curt to the kite is 49 yards. How far is Curt from the tree?

Answers

Answer:

about 33.24 yards

Step-by-step explanation:

a² + b² = c²

so, 36² + b² = 49²

1296 + b² = 2401

b² = 1105

Take the square root of both sides..

b = 33.24 yards

what the the opposite of - 4.1 ?

Answers

the opposite of -4.1 would be 4.1

Answer:

The opposite of -4.1 is 4.1.

opposites are the same number but either with a + sign or a - sign

EX)

7, -7

5, -5

4, -4

Determine the slope of the line that passes through the points (-4,-2) and (3,1).

Answers

Answer:

Step-by-step explanation:

Stephanie,  so many people ask questions about this type of problem,  I think the teachers don't know how to explain these at all.  Ask your teacher if I can have some of their salary :)  I have to explain this to that many people..  :0

given"

point P1 (-4,-2)  in the form (x1,y1)

point P2(3,1)  in the form (x2,y2)

slope = m

formula for slope is:

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

m = (1-(-2) ) / (3 - (-4))

m = (1+2) / (3+4)

m = 3 /7

That's your slope,  ask if you need more explanation,  I'm really curious about why this type of problem causes so many questions  :/

When factored completely, the expression p4 - 81 is equivalent to ....
1. (p2+9)(p2-9)
2. (p2-9)(p2-9)
3. (p2+9)(p+3)(p-3)
4. (p+3)(p-3)(p+3)(p-3)​

Answers

The answer is option 3 (p^2+9)(p+3)(p-3) because you use the difference of squares formula

pls what is 15=2d-0.5?

Answers

Answer:

d=7.75

Have a good day:>

If the radius of a cylinder is 3 centimeters, then the area of one of the circular bases is 18.84 square centimeters. True False

Answers

Answer:

false

Step-by-step explanation:

Answer:

False

Step-by-step explanation:

To calculate the area of a circle you need to multiply the radius by itself, then multiply that number by [tex]\pi[/tex].

In this case, our radius is 3, so we multiply 3 × 3 × [tex]\pi[/tex] (which can be estimated as 3.14)

3×3 is 9

9×3.14 is 28.26

28.26≠18.84

So, the correct answer is false. Hope this helps ^.^

Rewrite the function f(x) =-4(x+3)2-2 in the form f(x) = ax?+bx+c.
| f(x) = 1
Х
X
?

Answers

Answer:

Step-by-step explanation:

https://www.alvinisd.net/cms/lib/TX01001897/Centricity/Domain/436/Math%201314.61%20Quiz%20Solutions.pdf it will give u the answer trust me

what is the x intercept of the graph of y=4x-36

Answers

Answer:

36

Step-by-step explanation:

My explanation to this is that if you look at the problem it will show you 36.

Answer:

9

Step-by-step explanation:

To find the x-intercept, set y = 0

0 = 4x-36

Add 36 to both sides:

0+36 = 4x-36+36

36 = 4x

Divide by 4 on both sides:

36/4 = 4x/4

9 = x

The x-intercept is 9

These triangles are:
A) congruent,
B) similar or
C) neither.

Answers

Answer:

B similar

Step-by-step explanation:

Both of these triangles have the same proportions and angles even though they are different sizes, making them similar.

Have a most wonderous day!

Answer:

it should be similar

Step-by-step explanation:

I hope this helps

The perimeter of a semicircle is 15.42 inches. What is the semicircle's diameter?

Answers

Answer:

5.998

Simplified: 6

Step-by-step explanation:

On Tuesday, 14 students handed in a permission slip for a field trip. On Thursday, twice as many students handed in their permission slip than on Tuesday. On Friday, an additional 7 students turned in their permission slip. What expression could be used to find the total number of permission slips handed in?
14 x 2 + 7
14 + (2 x 14) + 7
14 + (2 x 7)
14 ÷ (2 x 7) + 14

Answers

14+(2x14)+7 is the correct answer.
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