Question 1

I. State Line Construction is taking on two projects in 2022. The first project is a condominium building in downtown Philadelphia. If they do not finish the project on time there are penalties. They have a 65% probability of finishing on time which results in no penalty. They have a 35% chance of being late which will result in a $10,000 penalty. The second project is a new football stadium on the Temple campus. If they do not finish the project on time there are penalties. They have a 25% chance of finishing on time which results in no penalty. They have a 75% chance of being late which will result in a $25,000 penalty. a. What is the probability that both projects will be completed on time? (1 point) b. What is the probability that both projects will be late? (1 point) c. What is the expect cost (penalty) of the projects that State Line is doing for 2022? (2 points) II. As the risk manager for the Philadelphia airport you want to collect data on specific airline delays and how it could impact the airports revenue. You start by looking into American Airlines and how many delays they have per day due to repairs. American Airlines has 50 airplanes operating out of Philadelphia airport. Below is the data you have collected. # of delays per day per plane Probability 0 0.06 1 0.17 2 0.25 3 0.33 4 0.13 5 0.06 e. Calculate the expected frequency of delays per day. (2 points) f. Calculated the variance. (2 points)