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

Question 329739: 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 stanbon(75887) (Show Source): You can put this solution on YOUR website!
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?
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E(x) = 20000*0.7 + 3000*0.3 = =$14,900
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Cheers,
Stan H.
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