Canada extracts water from the Niagara River upstream of Niagara Falls and uses it to generate hydroelectric
Question:
Canada extracts water from the Niagara River upstream of Niagara Falls and uses it to generate hydroelectric power at two generating stations downstream. Until 2013, water was taken to the generating stations in a tunnel and a canal, which were used to capacity 65% of the time. In 2006 work got underway on a second tunnel, and in 2013 it started delivering an Olympic-sized swimming pool of water to the generating stations every five minutes. Suppose that at the planning stage for the second tunnel, the geologists and engineers reach a consensus that it will cost $1.5 billion with a probability of 0.6 and $2.5 billion with a probability of 0.4. What is the expected cost of the tunnel?
Step by Step Answer:
Business Statistics
ISBN: 9780133899122
3rd Canadian Edition
Authors: Norean D. Sharpe, Richard D. De Veaux, Paul F. Velleman, David Wright