document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=550272>Question 550272</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Essay; show all work. The property restoration company PuroServ is considering switching to new dehumidifiers. Their market research, considering the cost of the new machines and their efficiency, tells them that the switch would give them a 95% chance of making a $20,000 profit, a 1% chance of breaking even, and a 4% chance of losing $5,000. How much money does PuroServ expect to make with their new purchase?  thanks so much for helping me. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #358701 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><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/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=358701\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Their market research, considering the cost of the new machines and their efficiency, tells them that the switch would give them a 95% chance of making a $20,000 profit, a 1% chance of breaking even, and a 4% chance of losing $5,000.<BR>\n" );
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document.write( "Random \"gain\" values: 20,000, 0, -5000<BR>\n" );
document.write( "Probabilities:::::::: 0.95,,0.01,,,0.04<BR>\n" );
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document.write( "Expected Value = 0.95*20,000+0.01*0 + 0.04*-5000 = $18,800<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H.<BR>\n" );
document.write( "============= </SPAN>\n" );
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