Mathematics, 25.02.2021 01:00, quintinlarrieu
A construction company submitted bids for three contracts. The company estimates that it has a 20%
chance of winning any given bid. Let X represent the number of bids the company wins. Here is the probability distribution of X along with summary statistics:
X = # of bids won-
0 1 2 3
P(X)-
0.512 0.384 0.096 0.008
Mean: µx=0.6
Standard deviation: σx=0.69
It costs the company a total of $2,000 to submit these bids, and they stand to gain $10,000 for each bid
they win. Let V represent their net gain from submitting these three bids.
What are the mean and standard deviation of V?
µv= dollars
σv=dollars
Answers: 2
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A construction company submitted bids for three contracts. The company estimates that it has a 20%...
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