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Sagot :
Answer:
x = 2/3
Explanation:
From the question, we have:
Probability of a defective car = x
Probability of a nondefective car = 1 - x
Value of defective car = Price of used cars = $2,500
Value of a nondefective car = $10,000
Expected value = Price of a new car = $5,000
The formula for calculating the expected value is given as follows:
Expected value = (Probability of a defective car * Value of defective car) + (Probability of a nondefective car * Value of a nondefective car) .......... (1)
Substituting all the relevant values into equation (1) and solve for x, we have:
$5,000 = (x * $2500) + (1 - x)$10,000
5,000 = 2500x + 10,000 - 10,000x
5000 - 10000 = 2500x - 10000x
-5000 = - 7500x
x = -5000 / - 7500
x = 2/3
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