SOLUTION: A ski resort profits $1,500,000 during a good winter with lots of snow. The resort has a loss of $500,000 otherwise. The resort�s historical climate data suggests that the probab

Question 263215: A ski resort profits $1,500,000 during a good winter with lots of snow. The resort has a loss of $500,000 otherwise. The resort�s historical climate data suggests that the probability of a good winter with lots of snow during any given year is 40%. What is the expected profit for the ski resort?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
A ski resort profits $1,500,000 during a good winter with lots of snow. The resort has a loss of $500,000 otherwise. The resort�s historical climate data suggests that the probability of a good winter with lots of snow during any given year is 40%. What is the expected profit for the ski resort?
E(x) = 0.4*1500000 - 0.6*500000
=================================
Cheers,
Stan H.
RELATED QUESTIONS
A ski resort profits $1,300,000 during a good winter with lots of snow. The resort has a (answered by stanbon)

A store specializing in mountain bikes is to open in one of two malls. If the first mall... (answered by ikleyn)

A ski resort can manufacture enough machine-made snow in 12 h to open its steepest run,... (answered by josgarithmetic)

The statements of financial position of 3 companies on 31 December 2020 were as follows; (answered by ikleyn)

15 Explain whether you think it�s reasonable for a ski resort to advertise excellent... (answered by solver91311)

15. Explain whether you think it�s reasonable for a ski resort to advertise excellent... (answered by solver91311)

Is the time it takes to drive to the ski resort a function of the speed you drive?... (answered by richard1234)

3. Is the time it takes to drive to the ski resort a function of the speed you drive?... (answered by jim_thompson5910)

H. LTD consolidated financial statement on 31 December 2020 was as follows; Credit sales (answered by ikleyn)