Probablity #2

[REL18]

A risk of rowing single scull boats is that striking a submerged rock may puncture the hull. Rowers with different levels of experience have different propensities to have this sort of accident. Assume that you’re a member of a rowing club consisting of 100 experienced rowers, 100 intermediate rowers and 100 ‘beginner’ rowers (but the club management do not know which rowers have which levels of experience). Over the past five years, on average 10 of the ‘beginner’ rowers, 6 of the intermediate rowers and 4 of the experienced boaters have serious submerged-rock accidents each year. Mending a scull hull costs $500.

Someone proposes that the club offer an extra membership benefit to members willing to pay for it: under the benefit scheme, the club would pay the costs of hull repair for submerged-rock punctures.

A. What advantage would this proposal have compared to letting people pay for their own hull repairs?
B. If the management could force all members to join the benefit scheme, how much would they charge per person (based on the historic data) in order to cover the total costs of the scheme? [5 points] If the scheme was offered at this price, would it be likely to cover costs? Why or why not?
C. If the benefit scheme is optional, so that members can choose to join or not join, but the management still wants the total charges to cover the total costs, would they have to charge each person more or less (based on historical data)? Explain your answer and estimate the new charge.

[ThinkQuick]

see your pm

[SumZero]

[ QUOTE ]
Plagiarism occurs when a writer duplicates another writer's language or ideas and then calls the work his or her own. - definition of plagiarism

[/ QUOTE ]

Many schools, for instance UCLA, will withdraw acceptance of students if they do not complete their required course work, for example Calculus II. Many schools also will severly punish a student, sometimes even expel them, should the student commit plagiarism, for instance submitting homework answers as their own that they obtained by asking the questions online (for example in a class on probabilistic microeconomics).

What is the probability that continued homework questions posted on the probability forum will result in someone reporting said poster to his school?

If you have an interesting question, that is a question that is interesting to people - even those that don't have the question as a homework question, then feel free to post that.

If you have a question that you are stuck on, and you can post work that shows you are trying to figure out the answer and have done some thinking yourself, then feel free to post that.

But if all you have is a routine homework question complete with the [5 points] scoring system and what not then don't post that and expect others to do your work for you. For if you do so you have committed a moral hazard. <font color="white"> I know my use of moral hazard here isn't actually a technically correct usage, but that was as much of a hint as I was willing to give the OP on his homework question. </font>