Q: Consider the decision to build R=88 regular and L=16 luxury apartments. Using the four random instances of the demand for regular apartments from Q5 and four random instances of the demand for luxury apartments from Q6, calculate the four corresponding total profit values obtained from sales of both regular and luxury apartments under this decision. Based on this four values, estimate the likelihood of the total profit to be above $52 million. Choose the closest from the answers below.
or
Q: Think about the choice to construct R=88 standard flats and L=16 upscale apartments. Using the four random instances of the demand for regular apartments from Q5 and four random instances of the demand for luxury apartments from Q6, calculate the four corresponding total profit values obtained from sales of both regular and luxury apartments under this decision. Calculate the probability that the overall profit will exceed $52 million based on these four figures. From the following responses, select the one that is closest.
- 0.25
- .5
- 0.9
- 0.75
- 0.1
Explanation: The likelihood of the total profit being above $52 million is 0.5.
