STA 120 Questions, can anyone help?

gurl · 10-26-03, 01:46 AM

I have 2 STA-120 questions, can anyone help?

Quote:

1. You can insure a $500,000 for its total value by paying a premium of D dollars. If the probability of theft in a given year is estimated to be .01, what preminum should the insurance company charge if its wants the expected gain to equal $1000?

2. From experience, a shipping company knows that the cost of delivering a small package within 24 hrs is $14.80. The company charges $15.50 for shipment but guarantees to refund the charge if delivery is not made within 24 hours. If the company fails to deliver only 2% of its packages within 24-hrs period, what is the expected gain per package?

Puffguts · 10-26-03, 01:12 AM

Hello there! I will try my best to answer your question.

1) This is a problem about "estimated gain" from a total possible value X and take a percentage of "success rate" of Y% out of the X, the resulted value being how much we loss/gain out of an total amount X with the percentage Y.

Solution: $500,000 x 0.01 (Poss. of Loss) = $5,000 loss estimated from theft each year. However, the insurance company not only want to make it even, it wants to have its gain (revenue?) to be equal to $1,000. Then to cover the $5000 loss with $5000 premium out of the customer, you add another $1000 to make it your gain. Conclusion: the insurance company will try to charge $6000 as the insurance premium.

2) This is a more complicated version of #1.

Solution: the cost for delivery is $14.80, yet the company charges $15.50 to cover for possible delay, and to gain a revenue after all the cost / penalty are deducted.

$15.50 x (1-0.02) = what is left of the total revenue after the expected penalty for delay. Result $15.19.

Now that is what the company will gain from every delivery per day minus the penalty. Now we factor in the basic cost.

$15.19 being the modified "raw" revenue minus the $14.80 cost, we have $0.39. That is the expected gain per package (what the company will actually earn after all the cost / penalty).

Good luck with stat. Take Mr.Hoon Kim if you can. He is the best stat teacher we will ever have.

gurl · 10-26-03, 02:06 PM

Thank you, Puffguts. I'm taking Mrs. Summers for STA 120 rite now. I'm taking Calculus next quarter. What teacher would you recommend? Thanks again.

Puffguts · 10-26-03, 08:29 PM

For Calculus I would recommend Mr.Radnitz, he is very good. I had Ms. Summers before and I found my learning style and her teaching style..."uncompatibl e."

***Admin*** · 10-26-03, 09:18 PM

Quote:

Originally Posted by Puffguts

Good luck with stat. Take Mr.Hoon Kim if you can. He is the best stat teacher we will ever have.

I will try to add Mr. Hoon Kim's class for Winter quarter. But first, I need to check the Math Department tomorrow morning to see if I passed the MDPT exam. Didn't know I had to take the math course within three course.

Puffguts, could you write a professor evaluation for Professor Kim?

Puffguts · 10-26-03, 10:59 PM

Sure! Mr.Kim's evaluation will be added very soon.

sungie79 · 10-29-03, 12:40 PM

i took stat120 in my 1st quarter of my 1st year. I don't remember a thing...forgot who i took it with too.

I recommend Mcdonald for calculus too. She's teaches well too.

Polygirl · 11-10-03, 09:03 PM

Dr. Hoon Kim is good, easy, knows his stuff, although somewhat boring.
What calculus?
I took the 130-132 Technical Calculus with Bangtam Le, she's awesome... ok, not awesome, but really good...

Quote:

Originally Posted by sungie79

i took stat120 in my 1st quarter of my 1st year. I don't remember a thing...forgot who i took it with too.

I recommend Mcdonald for calculus too. She's teaches well too.

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10-26-03, 01:12 AM	#2 (permalink)
Puffguts Active Member Joined: Oct 2003 Location: Chino Hills Posts: 140	Hello there! I will try my best to answer your question. 1) This is a problem about "estimated gain" from a total possible value X and take a percentage of "success rate" of Y% out of the X, the resulted value being how much we loss/gain out of an total amount X with the percentage Y. Solution: $500,000 x 0.01 (Poss. of Loss) = $5,000 loss estimated from theft each year. However, the insurance company not only want to make it even, it wants to have its gain (revenue?) to be equal to $1,000. Then to cover the $5000 loss with $5000 premium out of the customer, you add another $1000 to make it your gain. Conclusion: the insurance company will try to charge $6000 as the insurance premium. 2) This is a more complicated version of #1. Solution: the cost for delivery is $14.80, yet the company charges $15.50 to cover for possible delay, and to gain a revenue after all the cost / penalty are deducted. $15.50 x (1-0.02) = what is left of the total revenue after the expected penalty for delay. Result $15.19. Now that is what the company will gain from every delivery per day minus the penalty. Now we factor in the basic cost. $15.19 being the modified "raw" revenue minus the $14.80 cost, we have $0.39. That is the expected gain per package (what the company will actually earn after all the cost / penalty). Good luck with stat. Take Mr.Hoon Kim if you can. He is the best stat teacher we will ever have.

10-26-03, 02:06 PM	#3 (permalink)
gurl Newcomer Joined: Oct 2003 Posts: 3	Thank you, Puffguts. I'm taking Mrs. Summers for STA 120 rite now. I'm taking Calculus next quarter. What teacher would you recommend? Thanks again.

10-26-03, 08:29 PM	#4 (permalink)
Puffguts Active Member Joined: Oct 2003 Location: Chino Hills Posts: 140	For Calculus I would recommend Mr.Radnitz, he is very good. I had Ms. Summers before and I found my learning style and her teaching style..."uncompatibl e."

10-26-03, 10:59 PM	#6 (permalink)
Puffguts Active Member Joined: Oct 2003 Location: Chino Hills Posts: 140	Sure! Mr.Kim's evaluation will be added very soon.

10-29-03, 12:40 PM	#7 (permalink)
sungie79 Newcomer Joined: Oct 2003 Posts: 11	i took stat120 in my 1st quarter of my 1st year. I don't remember a thing...forgot who i took it with too. I recommend Mcdonald for calculus too. She's teaches well too.