Question: Course: Statistics and Probability An engineering firm provides industrial services to various companies. Since costs are always estimated, not all contracts signed are profitable. It

Course: Statistics and Probability An engineering firm provides industrial services to various companies. Since costs are always estimated, not all contracts signed are profitable. It is known that gross profit per contract (as a percentage of contract value) appears to have normal distribution with mean 12% and standard deviation 6%. Manager is about to sign a new contract. If gross profit on that contract is less than 10%, he will have to reevaluate way costs are being estimated. a) What is probability that gross profit will be less than 10%? b) Would you advise manager to reevaluate way he is estimating costs? Why? Explain

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Mathematics Questions!

Journal the following transactions related to the service business Toms Tailor Shop, owned by Tom Turnbull. 1. October 1. Received cash from owner, Tom Turnbull, as an investment, $5,000.00. Receipt...

(1) Income Statement Referencing this week?s readings and lecture, address the following: ? What are the two causes of an increasing or decreasing sales number? ? Discuss all the reasons that might...

I have attached the corresponding lessons for assignment 8, it usually includes practice problems at the bottom that look similar to the assignment. ASSIGNMENT 7 JOB ORDER COSTING Directions: After...

Report Format: Your report should include: II. Executive Summary (1 page in length). The Executive Summary is a concise overview of the report. The Case Study Report should be written from the...

1. Build a Balanced Scorecard for the unit of the organization for which you work, or have worked. Unless you are in senior management, focus on the unit with which you are most familiar rather than...

CASE 11 Netflix in 2012: Can It Recover from Its Strategy Missteps? Arthur A. Thompson The University of Alabama hroughout 2010 and the first six months of 2011, Netflix was on a roll. Movie...

Is there any way someone can help me with writing a report and write it for me by answering the flowing questions: You should prepare report with those objectives in mindhow well does the published...

will you please answer my questions i just posted 6. Audit Considerations: a. What material types of transactions and transaction cycles are involved? b. What are the high-risk areas? c. What are the...

Sustainability & Corporate Social Responsibility at GE \"GE should be commended for a bold approach to climate issues. However, the company has a long way to go before it can legitimately claim to be...

As discussed in "A Word About . . . Petroleum, Gasoline, and Octane Number" on p. 103, isomerization is often used to convert one alkane to a more substituted alkane. Suggest the highly branched...

When the auditor determines that controls are not operating effectively, the auditor needs to consider the kind of misstatements that could occur, how they might occur, and how the auditor would...

Divided yield on common stock is calculated as: divided per share of common stock,

Kumar applies for a disability insurance policy through Better Life Insurance Company and meets with his agent, Carmello, to review the application. Kumar's application indicates certain health and...

Lake Operon has a surface area of 5.5 X 10 8 m2 . There is a stream that flows in to the lake with a phosphorus concentration of 25 g/L and a flow rate of 75 m3 /s. The phosphorus settling rate (vs)...

Suppose a company needs temporary passwords for the trial of a new payroll software. Each password will have two letters, followed by one digit, followed by one letter. The letter W will not be used....

On March 2, 2000, 3Com, a publicly traded provider of computer networkingproducts, sold 5% of its Palm subsidiary in an IPO. 3Com had a plan to distribute the remaining Palm shares to 3Com...

Your company wants to improve sales. Past sales data indicate that the average sale was $100 per transaction. After training your sales force, recent sales data (taken from a sample of 25 salesmen)...

Target employs a main manager previously employed by Amazon. The supplier chains include vendors that produce products, warehouses that store the goods, completion centres that deliver the goods to...

1. Build trust and share information with others.

11. What types of information collected are most frequently used in decision-making?

10. How much time does it take between when we collect information until it is used in decision-making?