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Land purchase decision. A buyer for a lumber company must
Chapter , Problem 87E(choose chapter or problem)
Problem 87E
Land purchase decision. A buyer for a lumber company must decide whether to buy a piece of land containing 5,000 pine trees. If 1,000 of the trees are at least 40 feet tall, the buyer will purchase the land; otherwise, he won’t. The owner of the land reports that the height of the trees has a mean of 30 feet and a standard deviation of 3 feet. Based on this information, what is the buyer’s decision?
Questions & Answers
QUESTION:
Problem 87E
Land purchase decision. A buyer for a lumber company must decide whether to buy a piece of land containing 5,000 pine trees. If 1,000 of the trees are at least 40 feet tall, the buyer will purchase the land; otherwise, he won’t. The owner of the land reports that the height of the trees has a mean of 30 feet and a standard deviation of 3 feet. Based on this information, what is the buyer’s decision?
ANSWER:
Solution :
Step 1 of 1:
Given a buyer for a lumber company must decide whether to buy a piece of land containing 5,000 pine trees.
If 1,000 of the trees are at least 40 feet tall, the buyer will purchase land or not .
So the height of the trees has a mean of 30 feet and a standard deviation of 3 feet.
Our goal is:
We need to find the buyer decision.