Cumulative Distribution Functions

Author: Client Uploads

February 16th, 2023

Comparison of Cumulative Distribution Functions for cost associated with Contract A andContract Ba) What are the realistic maximum and minimum costs associated with each of the contracts?[4 marks]b) Which contract is associated with a higher probability of a cost less than £8 million? Whichcontract is associated with a higher probability of a cost greater than £11 million?[2 marks]c) If your decision was based on minimizing the expected value of the cost, which contractwould you choose? Does this agree with your assessment in Q5c, and if not, why not?

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