A congressional committee is investigating a defense contractor whose projects o

Question

A congressional committee is investigating a defense contractor whose projects often incur cost overruns. The data in the table below show Y, the fraction of the projects with an overrun of at most C %. Based on the table, what is the probability that there will be a cost overrun of 50% or more? Between 10% and 50%? Near what percent is the cost overrun most likely to be? Enter the exact answers for the probabilities. Round your answer for the most likely amount of cost overrun to the nearest percent. The probability that there will be a cost overrun of 50% or more is 1 %. The probability that there will be a cost overrun between 10% and 50% is 67 %. The most likely amount of cost overrun is %. the tolerance is +/-2%

Explanation / Answer

As per given data table is

where, Y is cummulative probability and p is probability ( difference between two consecutive Y).

by above table,

The probability that there will be a cost overrun of 50% or more is 0.01%.

i.e., probability of >=50%

The probability that there will be a cost overrun between 10% and 50% is 0.67%.

i.e., sum of probability from 10% to 50%.

The most likely amount of cost overrun is 30%.

because, highest probability of C%=30%.

C% Y Probability p <= -20% 0.01 0.01 -10% 0.08 0.07 0% 0.19 0.11 10% 0.32 0.13 20% 0.5 0.18 30% 0.8 0.30 40% 0.94 0.14 50% 0.99 0.05 >=50% 1.0 0.01

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.