Calculate expected values and then use them to make decisions.

Problem

The City of Minneapolis is deciding whether to install a stoplight or a stop sign at a very dangerous intersection. Every time a car goes through the intersection, it either is safe, gets in a minor accident, or gets in a major accident. The stoplight would prevent crashes more often, but they would be more costly if they did occur.
The City of Minneapolis performs 800 simulations of a car going through the intersection with a stoplight and with a stop sign. Once they decide whether to install a stoplight or a stop sign, they expect 4000 cars to travel through the intersection in the next year.
What is the expected damage at this intersection in the next year if the City of Minneapolis installs a stoplight? dollar sign
  • Your answer should be
  • an integer, like 6
  • an exact decimal, like 0, point, 75
  • a simplified proper fraction, like 3, slash, 5
  • a simplified improper fraction, like 7, slash, 4
  • a mixed number, like 1, space, 3, slash, 4
What is the expected damage at this intersection in the next year if the City of Minneapolis installs a stop sign? dollar sign
  • Your answer should be
  • an integer, like 6
  • an exact decimal, like 0, point, 75
  • a simplified proper fraction, like 3, slash, 5
  • a simplified improper fraction, like 7, slash, 4
  • a mixed number, like 1, space, 3, slash, 4
To minimize the expected damage, The City of Minneapolis should install a
.
(If necessary, round your answers to the nearest dollar.)
The following table shows damage from each type of accident depending on whether the City of Minneapolis installs a stoplight or a stop sign.
StoplightStop sign
Major accidentdollar sign, 900dollar sign, 700
Minor accidentdollar sign, 600dollar sign, 200
The following table shows the results from the traffic simulation.
Car resultStoplightStop sign
Major accident1519
Minor accident2431
No accident761750
Total800800
Get 3 answers correct in a row