SOLUTION: A contractor is considering a sale that promises a profit of $20,000 with a probability of .7 or a loss (due to bad weather, strikes, and such) of $3000 with a probability of .3. W
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Question 211071: A contractor is considering a sale that promises a profit of $20,000 with a probability of .7 or a loss (due to bad weather, strikes, and such) of $3000 with a probability of .3. What is the expected profit?
Answer by edjones(8007) (Show Source): You can put this solution on YOUR website!
(20000*.7)-(3000*.3)
=14000-900
=$13,100. expected profit
.
Ed
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