Question

In: Statistics and Probability

The City Fire Department currently owns 7 fire engines and wants to purchase an additional fire...

The City Fire Department currently owns 7 fire engines and wants to purchase an additional fire engine. In order to evaluate this request, the City Council gathers data on vehicles for Fire Departments in cities that are similar in key attributes (population size, land area, tax bases, etc.) These data are presented below. Should the City Council approve the Department’s request to purchase an additional fire engine? (Use any method of analysis that you find helpful and explain your answer in a few sentences.)

Number of Fire Engines

Number of Cities

5

4

6

5

7

8

8

15

9

12

10

6

Solutions

Expert Solution

Solution:-

Since the mean numbers of fire engines are 7.88 which is approximately 8, hence City fire department needs additional fire engine.


Related Solutions

1. Suppose that New York fire department receives an average of 12 requests for fire engines...
1. Suppose that New York fire department receives an average of 12 requests for fire engines each hour, and that these requests occur according to a Poisson process. Each request causes a fire engine to be unavailable for an average of 12 minutes. To have at least a 90% chance of being able to respond to a request, how many fire engines should the fire department have? 2. Two one-barber shop sit side by side in New York. Each shop...
A firm wants to purchase fire insurance for its main factory. The probability of a fire...
A firm wants to purchase fire insurance for its main factory. The probability of a fire in the factory without a fire-prevention program is 0.01; with a fire-prevention program the probability of a fire drops to 0.001. The fire-prevention programs costs $80 to run and a fire would result in a loss of $300,000. Suppose the firm is risk- neutral and the insurance company cannot observe whether or not it has implemented the fire-prevention program. Would the firm implement the...
The city council of Morristown is considering the purchase of one new fire truck. The options...
The city council of Morristown is considering the purchase of one new fire truck. The options are Truck X and Truck Y. The purchase is to be financed by money borrowed at 12% per year. The appropriate financial data are as follows: Truck X Truck Y Capital Investment 53,533 62,366 Maintenance cost per year 6,284 5,160 Useful life 5 5 Reduction in fire damage per year 21,569 24,633 Salvage value at the end of useful life 10,140 13,256 Use conventional...
The city council of Morristown is considering the purchase of one new fire truck. The options...
The city council of Morristown is considering the purchase of one new fire truck. The options are Truck X and Truck Y. The purchase is to be financed by money borrowed at 12% per year. The appropriate financial data are as follows: Truck X Truck Y Capital Investment 52,061 62,756 Maintenance cost per year 6,313 5,106 Useful life 7 7 Reduction in fire damage per year 21,188 24,102 Salvage value at the end of useful life 10,833 13,229 Use conventional...
Irena Blazes, the fire chief of Flares, Oregon, wants to introduce volunteers into the department but...
Irena Blazes, the fire chief of Flares, Oregon, wants to introduce volunteers into the department but fears that employees will resist volunteers. Chief Blazes would like to use volunteers and wants to avoid potential labor problems. She has decided to introduce volunteers if 60 percent of the employees agree to work with them. She administers a survey to all 150 paid firefighters, and 90 respond. Among these 90 firefighters, 62 say that they agree to work with volunteers and accept...
The sanitation department of a large city wants to investigate ways to reduce the amount of...
The sanitation department of a large city wants to investigate ways to reduce the amount of recyclable materials that are placed in the landfill. They randomly sample 30 households and find that the sample mean amount of waste per household is 9.5 pounds/week and the standard deviation is 11.5 pounds/week. The distribution of the data is slightly right skewed but contains no extreme outliers. Construct a 99% confidence interval for the mean amount of waste per household. a. (5.385, 13.615)...
Barney owns a bagel business in New York City and he wants to increase his total...
Barney owns a bagel business in New York City and he wants to increase his total revenue. He knows that, when bagels are $1, he sells 250 an hour, and when he lowers the price to $0.75, he sells 275 an hour. A) Using the midpoint method, compute the price elasticity of demand for Barney’s bagels. (show formula and all your calculations) B) Based on your answer to section A, is demand for Barney’s bagels elastic or inelastic? How do...
14- a) Sam is currently 30 years of age. He owns his own business, and wants...
14- a) Sam is currently 30 years of age. He owns his own business, and wants to retire at the age of 60. He has little confidence in the current Social Security system. He wants to retire with an annual income of $72,000 a year. If Sam believes he will live to age 90, how much does he have to accumulate by the time he reaches age 60 to receive $72,000 at the end of each year for the rest...
Sarah wants to purchase a new car that lists for $30,000. The manufacturer currently offers two...
Sarah wants to purchase a new car that lists for $30,000. The manufacturer currently offers two incentive programs. She may finance the full price of the car through the manufacturer at 0% for 5 years. Alternatively, she may arrange his own financing and receive a $3,000 discount off the price of the car. Sarah’s bank will finance the car at 4.5 percent for 5 years. Which financing option should she choose? Justify your answer.
II-(7 pts) A city wants to know if a new advertising campaign to make citizens aware...
II-(7 pts) A city wants to know if a new advertising campaign to make citizens aware of the dangers of driving after drinking has been effective. They count the number of drivers who have been stopped with more alcohol in their systems than the law allows for each day of the week in the week before and the week a month after the campaign starts. Let ?? be the difference between the number of drivers caught with excessive alcohol in...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT