the distance to your brother's house is 416 miles, and the distance to Denver is 52 miles. if it took 8 hours to drive to your brother's house, how long would it take to drive to Denver?

Explanation

As long as the expected value of the payoff isn't negative, the Universal price cut would be statistically worthwhile.

Expected payoff = [Probability of rival not matching * Gain from price cut] + [Probability of rival matching * Loss from price cut]

Remember that:

Probability that rivals don't match + Probability that rivals match = 1

If the probability that rivals don't match = ρ, then the probability that rivals match = 1 - ρ.

Substitute these probabilities into the expected value equation along with the loss and gain from price changes.

Expected payoff = [ (ρ) * $1,000,000] + [ (1 - ρ) * $-20,000]

Expected payoff = [$1,000,000ρ] + [$-20,000 + $20,000ρ]

Answer: 64 Hours

Step-by-step explanation:

First you set up you fraction. So you write 416 miles over 8 hrs. Then you divide 416 by 52 and whatever answer you get you multiply that times 8 hrs. So since 416 divided by 52 was 8 you multiple the denominator 8 times 8 and get 64 I hope i explained thouroughly