Grear tire company has produced a new tire with an estimated mean lifetime mileage of 36,500 miles. management also believes that the standard deviation is 5000 miles and that tire mileage is normally distributed. to promote the new tire, grear has offered to refund some money if the tire fails to reach 30,000 miles before the tire needs to be replaced. specifically, for tires with a lifetime below 30,000 miles, grear will refund a customer $1 per 100 miles short of 30,000.

a. for each tire sold, what is the expected cost of the promotion?

b. what is the probablility that grear will refund more than $ 50 for a tire?

c. what milage should grear set the promotion claim if it wants the expected cost to be $2?

Suppose that xtel currently is selling at $40 per share. you buy 500 shares using $15,000 of your own money, borrowing the remainder of the purchase price from your broker. the rate on the margin loan is 8%. a. what is the percentage increase in the net worth of your brokerage account if the price of xtel immediately changes to (a) $44; (b) $40; (c) $36? (leave no cells blank - be certain to enter "0" wherever required. negative values should be indicated by a minus sign. round your answers to 2 decimal places.) b. if the maintenance margin is 25%, how low can xtel’s price fall before you get a margin call? (round your answer to 2 decimal places.) c. how would your answer to requirement 2 would change if you had financed the initial purchase with only $10,000 of your own money? (round your answer to 2 decimal places.) d. what is the rate of return on your margined position (assuming again that you invest $15,000 of your own money) if xtel is selling after one year at (a) $44; (b) $40; (c) $36? (negative values should be indicated by a minus sign. round your answers to 2 decimal places.) e. continue to assume that a year has passed. how low can xtel’s price fall before you get a margin call? (round your answer to 2 decimal places.)

What would happen to the equilibrium price and quantity of lattés if the cost to produce steamed milk

Oz makes lion food out of giraffe and gazelle meat. giraffe meat has 18 grams of protein and 36 grams of fat per pound, while gazelle meat has 36 grams of protein and 18 grams of fat per pound. a batch of lion food must contain at least "46,800" grams of protein and 70,200 grams of fat. giraffe meat costs $1/pound and gazelle meat costs $2/pound. how many pounds of each should go into each batch of lion food in order to minimize costs? hint [see example 2.]