Question

Probability and statistics for engineers

Question 7 Not yet answered The chance that a certain old bridge will fail is 0.002. A new bridge will cost 50000 (fifty thousands) JD. If losses for the bridge failure will amount to 5 million, determine whether the new bridge should be built. Marked out of 2 P Flag question O a. No, need to build new bridge O b. Yes, there is a need to build new bridge O c. We need more information to decide O d. The Engineer will decide to build or not to build new bridge.

Answer 1

Answer: Option (a) is correct.

Explanation -

bridge will Probability that feil = b = 0.002 So, probability that bridge will not fail = (1-6)=0.998 of the bridge fails, then loss = 5 million. Experted doss = (0.002) (5 x106) [:E GJ So, 10ooo JD Cost of making the bridge So ooo SD So, Cost of making bridge > Expected loss Thus, a) No need to build new bridge Because it Costs more than expected loss.