Question

In: Advanced Math

GTA Construction Corporation constructed two buildings near the San Andreas fault line. The probability that either...

GTA Construction Corporation constructed two buildings near the San Andreas fault line. The probability that either of these buildings will experience an earthquake is 4.6 percent. However, if one building experiences an earthquake, the probability that the second building will experience an earthquake is 57 percent. What is the probability (in percent) that both buildings will experience earthquake damage?

IMB Computing creates motherboards for cellphones at their campuses in Seattle and San Diego. The company is worried about computer hackers and hired a consultant to evaluate their risk. The consultant estimated that the San Diego campus has a 12.1 percent chance of being hacked. The consultant also noted that the Seattle location has a 24.4 percent chance of digital hacking. IMB would asks the consultant, what is the probability (in percent) that both campuses will suffer hacking related crime in any given year?

Hishiba Company assembles hard drives and has plants in both the South and the North, spaced about 3,000 miles apart and connected by light rail. Hishiba is worried about local rain causing flooding at their plants. The probability that in any given year a flood will damage the North plant 5.1 percent. The probability that in any given year a flood will damage the South plant is 13 percent. What is the probability (in percent) that at least one of the plants will be damaged by flood in any given year?

Solutions

Expert Solution

1. Probability is 2.6 %. Solution is done in notebook. Follow the image.

2. Probability is 2.95 %. Solution is done in notebook. Follow the image.

3. Probability is 17.43 %. Solution is done in notebook. Follow the image.


Related Solutions

On December 31, 20x0, the Tyra Corporation purchased two office buildings. Tyra decided to use the revaluation model for the buildings.
  On December 31, 20x0, the Tyra Corporation purchased two office buildings. Tyra decided to use the revaluation model for the buildings. Data for the two buildings is as follows: Building 1 Building 2 Original cost $11,000,000 $8,000,000 December 31, 20x2 Fair Value 11,200,000 7,350,000 December 31, 20x4 Fair Value 10,600,000 7,250,000 December 31, 20x6 Fair Value 10,400,000 6,900,000 The useful life of each building is 40 years with no residual value. On June 30, 20x7, Building 2 is sold...
Golden Gate Construction Associates, a real estate developer and building contractor in San Francisco, has two...
Golden Gate Construction Associates, a real estate developer and building contractor in San Francisco, has two sources of long-term capital: debt and equity. The cost to Golden Gate of issuing debt is the after-tax cost of the interest payments on the debt, taking into account the fact that the interest payments are tax deductible. The cost of Golden Gate’s equity capital is the investment opportunity rate of Golden Gate’s investors, that is, the rate they could earn on investments of...
Golden Gate Construction Associates, a real estate developer and building contractor in San Francisco, has two...
Golden Gate Construction Associates, a real estate developer and building contractor in San Francisco, has two sources of long-term capital: debt and equity. The cost to Golden Gate of issuing debt is the after-tax cost of the interest payments on the debt, taking into account the fact that the interest payments are tax deductible. The cost of Golden Gate’s equity capital is the investment opportunity rate of Golden Gate’s investors, that is, the rate they could earn on investments of...
Golden Gate Construction Associates, a real estate developer and building contractor in San Francisco, has two...
Golden Gate Construction Associates, a real estate developer and building contractor in San Francisco, has two sources of long-term capital: debt and equity. The cost to Golden Gate of issuing debt is the after-tax cost of the interest payments on the debt, taking into account the fact that the interest payments are tax deductible. The cost of Golden Gate’s equity capital is the investment opportunity rate of Golden Gate’s investors, that is, the rate they could earn on investments of...
There are two cities, San Fran and Eugene, and 100 identical workers who can choose to live in either city.
There are two cities, San Fran and Eugene, and 100 identical workers who can choose to live in either city. Suppose the indirect utility of living in either city is given by: Vj=Wj -Rj where Wj is the wage of living in either city j and Rj is the rent in city j. Wages in Eugene are $200 and wages in San F. are $400. Rents in Eugene, Re are given by: Re = 30 + Le, where Le is...
Two workers (A and B) are on a production line. They can either exert effort E...
Two workers (A and B) are on a production line. They can either exert effort E or shirk S. It costs each worker 1 > £c > 0 to provide effort and shirking costs them nothing. The workers together produce one unit of output. If the unit passes the quality control test it can be sold for £2 (shared equally between the workers) and it has value zero if it fails the test. The probability of passing the test, p,...
Los Angeles County is located closest among the three to a major earthquake fault line. Are homeowners in Los Angeles County more likely to purchase earthquake insurance than those in San Bernardino County?
California insurance companies wanted to study factors (e.g., the proximity to a major earthquake fault line) that may influence homeowners’ decisions to purchase earthquake insurance. Surveys were mailed to randomly selected households in three California counties to investigate the possible proximity effect. The data collected are shown below:Sample size1000- Los Angeles1200- San Barnadino1400-Santa ClaraNumbers with earthquake insurance377-Los Angekes469-San Bernadino390-Santa Clara1. Los Angeles County is located closest among the three to a major earthquake fault line. Are homeowners in Los Angeles...
The Short-Line Railroad is considering a $125,000 investment in either of two companies. The cash flows...
The Short-Line Railroad is considering a $125,000 investment in either of two companies. The cash flows are as follows: Year Electric Co. Water Works 1 $ 90,000 $ 15,000 2 20,000 20,000 3 15,000 90,000 4 – 10 15,000 15,000 a. Compute the payback period for both companies. (Round your answers to 1 decimal place.) Electric Co.    Years    Water Works Years b. Which of the investments is superior from the information provided?
1. The Short-Line Railroad is considering a $200,000 investment in either of two companies. The cash...
1. The Short-Line Railroad is considering a $200,000 investment in either of two companies. The cash flows are as follows: Year Electric Co. Water Works 1 $ 100,000 $ 50,000 2 50,000 50,000 3 50,000 100,000 4 – 10 25,000 25,000 a. Compute the payback period for both companies. (Round your answers to 1 decimal place.)    b. Which of the investments is superior from the information provided?    Electric Co. Water Works 2. Aerospace Dynamics will invest $198,000 in...
The Short-Line Railroad is considering a $180,000 investment in either of two companies. The cash flows...
The Short-Line Railroad is considering a $180,000 investment in either of two companies. The cash flows are as follows: Year Electric Co. Water Works 1 $ 80,000 $ 30,000 2 50,000 70,000 3 50,000 80,000 4 – 10 20,000 20,000 a. Compute the payback period for both companies. (Round your answers to 1 decimal place.)    b. Which of the investments is superior from the information provided?    Water Works Electric Co.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT