Mathematics, 23.03.2021 19:30 Amyra2003

A construction company has to complete a project no later than three months from now or there will be significant cost overruns. The manager of the construction company believes that there are four possible values for the random variable X, the number of months from now it will take to complete this project: 2, 2.5, 3, and 3.5. The manager currently thinks that the probabilities of these four possibilities are in the ratio 1 to 2 to 4 to 2. That is, Pr(X=2.5) is twice as likely as Pr(X=2), Pr(X=3) is twice as likely as Pr(X=2.5) and Pr(X=3.5) = 1/2Pr(X=3).1

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A construction company has to complete a project no later than three months from now or there will b...