document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=457960>Question 457960</A>: <I><SPAN STYLE=\"word-break: break-all;\"> B.3. A plumbing contractor has the opportunity to bid on a contract to do the plumbing work for a new office building. After reviewing the blueprints and specifications, the contractor estimates that the job will cost $300,000. The possible bids the contractor might make and his estimates of the probability of winning the contract at each bid level are:<BR>\n" );
document.write( "Bid	Probability Win<BR>\n" );
document.write( "$330,000	.90<BR>\n" );
document.write( "$350,000	.75<BR>\n" );
document.write( "$375,000	.50<BR>\n" );
document.write( "$400,000	.25<BR>\n" );
document.write( "$425,000	0<BR>\n" );
document.write( "What should the contractor bid if he wishes to maximize his expected profits?<BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #314183 by </B><A HREF=/tutors/aboutme.mpl?userid=edjones><B>edjones(8007)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=edjones><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=edjones><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=314183\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> profit* prob = expected profit<BR>\n" );
document.write( "30000 * .90 = 27000<BR>\n" );
document.write( "50000 * .75 = 37500<BR>\n" );
document.write( "75000 * .50 = 37500<BR>\n" );
document.write( "100000* .25 = 25000<BR>\n" );
document.write( ".<BR>\n" );
document.write( "Make the 50000 or 75000 bid.<BR>\n" );
document.write( ".<BR>\n" );
document.write( "Ed </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );