The Texas DOT is comparing two alternativepavement treatments with the followingcharacteristics. For each alternative, estimatethe probability to have an annualizedconstruction cost lower than $20k/year. As aresult, which alternative would yourecommend? The interest rate is 5% per yearcompounded annually and inflation runs at2.4% per year.ConstructionTreatmentService Life Years (probability)OverlayReconstructioncost/lane-mile$130k$220k6 (15%)11 (20%)7 (25%)12 (25%)8 (35%)13 (35%)9 (15%)14 (12%)10 (10%)15 (8%)

For getting the least expensive alternative, we will use effective annual cost method. Please find…

Answered: The Texas DOT is comparing two…

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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An insurance policy is written to cover damage to a luxury sports car. The amount of damage is uniformly distributed between $0 and $39000. In order to decrease the in- surance premium, the insurance company de- cides to charge an ordinary deductible, d, so that the expected insurance payment with the deductible is 61 % of the expected insurance payment without the deductible. Determine the value of the deductible, d. 1. $8113 2. $8967 3. $8540 4. $7686 5. $7259
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