Question

the distance to your brother's house is 416 miles, and the distance to Denver is 52 miles. if it took 8 hours to drive to your brother's house, how long would it take to drive to Denver?

Answer 1

Explanation

As long as the expected value of the payoff isn’t negative, the Universal price cut would be statistically worthwhile.

Expected payoff = [Probability of rival not matching × Gain from price cut] + [Probability of rival matching × Loss from price cut]

Remember that:

Probability that rivals don’t match + Probability that rivals match = 1

If the probability that rivals don't match = ρ, then the probability that rivals match = 1 − ρ.

Substitute these probabilities into the expected value equation along with the loss and gain from price changes.

Expected payoff = [(ρ) × $1,000,000] + [(1 − ρ) × $−20,000]

Expected payoff = [$1,000,000ρ] + [$−20,000 + $20,000ρ]

Explanation:

Answer 2

Answer: 64 Hours

Explanation:

First you set up you fraction. So you write 416 miles over 8 hrs. Then you divide 416 by 52 and whatever answer you get you multiply that times 8 hrs. So since 416 divided by 52 was 8 you multiple the denominator 8 times 8 and get 64 I hope i explained thouroughly