Mathematics, 08.12.2019 20:31 damienlopezram
Arock 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 $15,000 in guarantees made to the band and other expenses. the probability of rain on the 4th is .4.
(a) what is the promoter's expected profit? is the expected profit a reasonable decision criterion? (round your answers to 1 decimal place. omit the "$" sign in your response.)
(b) how much should an insurance company charge to insure the promoter's full losses?
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Arock concert promoter has scheduled an outdoor concert on july 4th. if it does not rain, the promot...
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