Tags Probability

Animals & Plants Arts & Entertainment Auto Beauty & Health Books and Literature Business Electronics Engineering & Technology Food & Drink History Hobbies Jobs & Education Law & Government Math People & Society Science Social Studies Sports Travel & Places

0

Subjects>Math>Statistics

Estimate the probability that the next time you ride in a car you will not be delayed because of some car crash blocking the road?

Updated: 4/28/2022

Wiki User

∙ 11y ago

Best Answer

There is no information on how many cars are on the road right now.

Wiki User

∙ 11y ago

This answer is:

Add your answer:

Earn +20 pts

Q: Estimate the probability that the next time you ride in a car you will not be delayed because of some car crash blocking the road?

Write your answer...

Submit

Still have questions?

imp

Continue Learning about Statistics

Bradford Services Inc BSI is considering a project that has a cost of 10 million and an expected life of 3 years There is a 30 percent probability of good conditions?

Bradford Services Inc. (BSI) is considering a project that has a cost of $10 million and an expected life of 3 years. There is a 30 percent probability of good conditions, in which case the project will provide a cash flow of $9 million at the end of each year for 3 years. There is a 40 percent probability of medium conditions, in which case the annual cash flows will be $4 million, and there is a 30 percent probability of bad conditions and a cash flow of -$1 million per year. BSI uses a 12 percent cost of capital to evaluate projects like this. a. Find the project\'s expected cash flows and NPV. b. Now suppose the BSI can abandon the project at the end of the first year by selling it for $6 million. BSI will still receive the Year 1 cash flows, but will receive no cash flows in subsequent years. Assume the salvage value is risky and should be discounted at the WACC. c. Now assume that the project cannot be shut down. However, expertise gained by taking it on will lead to an opportunity at the end of Year 3 to undertake a venture that would have the same cost as the original project, and the new project\'s cash flows would follow whichever branch resulted for the original project. In other words, there would be a second $10 million cost at the end of Year 3, and then cash flows of either $9 million, $4 million, or -$1million for the following 3 years. Use decision tree analysis to estimate the value of the project, including the opportunity to implement the new project in Year 3. Assume the $10 million cost at Year 3 is known with certainty and should be discounted at the risk-free rate of 6 percent. Hint: do one decision tree for the operating cash flows and one for the cost of the project, then sum their NPVs. d. Now suppose the original (no abandonment and no additional growth) project could be delayed a year. All the cash flows would remain unchanged, but information obtained during that year would tell the company exactly which set of demand conditions existed. Use decision tree analysis to estimate the value of the project if it is delayed by 1 year. Hint: Discount the $10 million cost at the risk-free rate since it is known with certainty. Show two time lines, one for operating cash flows and one for the cost, then sum their NPVs. e. Go back to part c. Instead of using decision tree analysis, use the Black-Scholes model to estimate the value of the growth option. The risk-free rate is 6 percent, and the variance of the project\'s rate of return is 22 percent. You can also get answer on onlinesolutionproviders com thanks

Related questions

Which drug may have delayed absorption because of the adverse effect of cholinergic blocking agent?

betablockers

Why is Harry Potter being delayed?

It was delayed because of the writers' strike.

The guest speaker was delayed because of heavy traffic which is the compound of heavy traffic was delayed guest speaker because of?

Of heavy traffic

the guest speaker was delayed because of heavy traffic which is the compound preposition of heavy traffic was delayed guest speaker because of?

Of heavy traffic

How many years was john white delayed?

he was delayed for about 3 years because Spain was preparing to invade England

Why was Naruto delayed in the US?

The episodes are delayed(compared to Japan) because English dubbing started a while after the series began.

How often are airline flights delayed?

Airline flights are often delayed. They get detailed most often because of bad weather conditions but also because of mechanical and maintenance reasons.

How many baseball games relayed because of protest?

delayed*

Why were Dubai flights delayed to the US today?

because of heavy fog

When and Where does Boston Celtics Play on Saturday?

They delayed the game because of rain.

What is is delayed adjective?

It is delayed

Use the word expedition in a sentence?

Our expedition to the Artic was delayed because of the weather.

Trending Questions

What is the probability of rolling snake eyes at least once in four separate rolls of a pair of dice? Is astonished and greatest mean the same thing? If you draw a card from a standard deck of cards what is the probability of drawing a red card? What was the survival rate for the middle passage? Is a axis used to plot or locate data? A coin is flipped 3 times. What is the probability of getting at least 1 tails? How many outcomes are there for the event of rolling a 6-sided number cube and then spinning an 4 part spinner? An author is most likely to defend her choice of multiple regression statistical techniques in which section of a proposal? Mathematical definition of median? How likely is it to fall pregnant if a guy cuns on your cagina? Which branch of statistics deals with the organization and summarization of collected information? Probability of precipitation means what? How many ways can you arrange the letters in the word Michael? The random variable x represents the number of cars per household in a town of 1000 households Find the probability of randomly selecting a household that has less than two cars? What percentage of women wear thongs? How long does an average menstrual period last? Which word means nearly the opposite of random? A bag contains green and yellow tiles You pick 2 tiles without replacing the first one The probability that the first tile is yellow is 35 The probability of drawing 2 yellow tiles is 1235? What is the intersection of the assessed probability and severity of a hazzard called in the crm? Example of static webpage?

Previously Viewed

Estimate the probability that the next time you ride in a car you will not be delayed because of some car crash blocking the road?

Resources

Top Categories

Product

Company

Copyright ©2024 Infospace Holdings LLC, A System1 Company. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Answers.