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NEW QUESTION: 1
Under frost-free conditions, Cal Cultivators expects its strawberry crop to have a $60,000 market value.
An unprotected crop subject to frost has an expected market value of $40,000. If Cal protects the
strawberries against frost, then the market value of the crop is still expected to be $60,000 under frostfree
conditions and $90,000 if there is a frost. What must be the probability of a frost for Cal to be indifferent to
spending $10,000 for frost protection?
A. .200
B. .250
C. .333
D. .167
Answer: A
Explanation:
Choice "b" is correct. If there is no frost, then there is no difference between Cal's income with or without
the insurance-the crop is worth $60,000 either way. However, if the insurance is purchased and a frost
occurs, Cal earns $50,000 more with insurance ($90,000 $40,000) than he would without the insurance.
The expected value of having the insurance is therefore:
Probability of frost x $50,000 + Probability of no frost x $0
Cal will be indifferent to spending $10,000 for frost protection when the expected value of the insurance
equals the cost of the insurance:
Probability of frost x $50,000 = $10,000
Probability = 20%
Choices "a", "c", and "d" are incorrect based on the above Explanation:.
NEW QUESTION: 2
You are working on a construction project in a city different from your headquarters' location. You and your team have not worked in this city, City B, previously, and you lack knowledge of the local building codes.
You had a team member review the codes, and he said they were in far greater detail than those in your city, City A. When you asked him how much time he would need to spend to gain a complete understanding of these codes, he estimated that at least five weeks would be needed. You then decided it would be more cost effective to hire a local person from City B who specializes in this area. As a result, as you prepare your schedule and estimate your resource requirements for this project, you should coordinate this work closely with which of the
following processes:
A. Develop schedule
B. Define activities
C. Determine budgets
D. Estimate costs
Answer: D
Explanation:
Explanation/Reference:
Explanation:
The estimate activity resources process involves estimating the type and quantities of material, people, equipment, or supplies needed to perform each activity. This means close coordination with the estimate costs process is needed.
NEW QUESTION: 3
In Cisco TMS, the conference control center shows event logs in instance basis. Which two prefixes does the event log use to identify changes to series of single instances? (Choose
two.)
A. Event
B. Instance
C. Error
D. Information
E. Conference
Answer: B,E
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