Percentage Of Days In Which The Highway Research Paper

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¶ … percentage of days in which the highway had traffic was 3/20, or 0.15, or 15%. Thus, the average time that can be expected for the I-20 is (.15)(45) + (.85)(25) = 6.75 + 21.25 = 28 minutes. The expected time on Shea Boulevard is 35 minutes, and this is consistent. Thus, during normal conditions it is faster on average to take the I-20. The total travel time for the month will be lower.

If in winter the odds of delays are 6/20 = 30%, then the situation might change. The expected average travel time would be: (.3)(45) + (.7)(25) = 13.5 + 17.5 = 31 minutes. The time on Shea Boulevard doesn't change. Thus, even in winter it is still faster...

...

The result is that the expected time would be (.85)(25)+(.1)(35)+(.05)(45) = 21.25 + 3.5 + 2.25 = 27 minutes total time. The average has declined slightly because of the two trips where the accident is avoided.
The present value of the second alternative is 5.5 / (1.06)^2 = 5.5 / 1.1236 = 4.89 million. This combines with the initial 5.5 million for a total of 10.39 million.

Thus, the second alternative delivers more money in terms of net present value than the first option, where it all comes at once. The donation…

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