Question

problem i need help suppose the probability of rain is 50%. what profit can the concession stand expect to make? this are the equations (p=2.50v-500 and v=600-500r)

Answer 1

hey

Answer 2

could you give the exact question as written?

Answer 3

thats the exact question thats why i don't ge it

Answer 4

Suppose r = P(rain), p = profit and -600 and -500 are constant expenses:

Now:
\[P(rain) = 0.5\]
Thus:
\[p=2.5*(600-500*0.5)-500=375\]
We can also find out that when:
\[\lim_{r \rightarrow 1} 2.5*(600 - 500*r) - 500\]
\[p \rightarrow-250\]
and
\[\lim_{r \rightarrow 0} 2.5*(600 - 500*r) - 500\]
\[p \rightarrow1000\]