Solution Found!
The article “Traps in Mineral Valuations—Proceed With
Chapter 2, Problem 14SE(choose chapter or problem)
The article “Traps in Mineral Valuations—Proceed With Care” (W. Lonegan, Journal of the Australasian Institute of Mining and Metallurgy, 2001:18–22) models the value (in millions of dollars) of a mineral deposit yet to be mined as a random variable X with probability mass function \(p(x)\) given by \(p(10)=0.40\), \(p(60)=0.50\), \(p(80) = 0.10\), and \(p(x)=0\) for values of x other than 10, 60, or 80.
a. Is this article treating the value of a mineral deposit as a discrete or a continuous random variable?
b. Compute \(\mu_X\).
c. Compute \(\sigma_X\).
d. The project will be profitable if the value is more than $50 million. What is the probability that the project is profitable?
Equation Transcription:
Text Transcription:
p(x)
p(10)=0.40
p(60)=0.50
p(80)=0.10
p(x)=0
mu_X
sigma_X
Questions & Answers
QUESTION:
The article “Traps in Mineral Valuations—Proceed With Care” (W. Lonegan, Journal of the Australasian Institute of Mining and Metallurgy, 2001:18–22) models the value (in millions of dollars) of a mineral deposit yet to be mined as a random variable X with probability mass function \(p(x)\) given by \(p(10)=0.40\), \(p(60)=0.50\), \(p(80) = 0.10\), and \(p(x)=0\) for values of x other than 10, 60, or 80.
a. Is this article treating the value of a mineral deposit as a discrete or a continuous random variable?
b. Compute \(\mu_X\).
c. Compute \(\sigma_X\).
d. The project will be profitable if the value is more than $50 million. What is the probability that the project is profitable?
Equation Transcription:
Text Transcription:
p(x)
p(10)=0.40
p(60)=0.50
p(80)=0.10
p(x)=0
mu_X
sigma_X
ANSWER:
Solution 14SE
Step1 of 3:
We have models the value of a mineral deposit yet to be mined as a random variable X with probability mass function p(x) given by
P(10) = 0.40,
P(60) = 0.50,
P(80) = 0.10 and
P(x) = 0 for values of x other than 10, 60, or 80.
We need to find,
a).Is this article treating the value of a mineral deposit as a discrete or a continuous random variable?
b).Compute.
c).Compute .
d).The project will be profitable if the value is more than $50 million. What is the probability that the project is profitable?