Some People Believe That Criminals Who Plead Guilty Will, on Average

question 6

Essay

Some people believe that criminals who plead guilty will, on average, get lighter sentences. The following table summarizes data from a random sample of San Francisco defendants in burglary cases. If the null hypothesis is that the plea and the sentencing fate are independent, perform the calculations to find the expected number of individuals who plead not guilty and are sent to prison. Show your work.

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Definitions:

Forecasting Risk

The possibility of error in projecting future values such as revenues, costs, or stock prices, due to uncertainty about future events.

Initial Investment

Refers to the initial capital outlay or amount of money invested to start a project or investment.

IRR

Internal Rate of Return; a financial metric used to estimate the profitability of potential investments, calculated as the discount rate that makes the net present value of all cash flows from a particular project equal to zero.

Financial Break-Even

The point at which revenues equal expenses and neither profit nor loss is realized.