document.write( "Question 811719: An architect is considering bidding for the design of a new theater. The cost of drawing plans and submitting a model is $15,000.The probability of being awarded the bid is 0.2,and anticipated profits are $80,000,resulting in a possible gain of this amount minus the $15,000 cost for plans and models. What is the expected value if the architect decides to bid for the design? Describe what this value means. \n" ); document.write( "
Algebra.Com's Answer #488854 by stanbon(75887)\"\" \"About 
You can put this solution on YOUR website!
An architect is considering bidding for the design of a new theater. The cost of drawing plans and submitting a model is $15,000.The probability of being awarded the bid is 0.2,and anticipated profits are $80,000,resulting in a possible gain of this amount minus the $15,000 cost for plans and models. What is the expected value if the architect decides to bid for the design? Describe what this value means.
\n" ); document.write( "------
\n" ); document.write( "Random \"gain\":: -15000......65,000
\n" ); document.write( "Probabilities::....0.2.........0.8\r
\n" ); document.write( "\n" ); document.write( "==============
\n" ); document.write( "Expected \"gain\" = 0.2*-15000 + 0.8(65000) = $49,000
\n" ); document.write( "======
\n" ); document.write( "Meaning:: If he bids he can expect to gain $49,000
\n" ); document.write( "==============
\n" ); document.write( "Cheers,
\n" ); document.write( "Stan H.
\n" ); document.write( "----------------- \n" ); document.write( "
\n" );