SOLUTION: Mandy is considering a lawsuit against a chemical company. Erin, her lawyer, estimated that there is a 65% chance Mandy will make $150,000, a 10% chance Mandy will break even, and

Algebra ->  Probability-and-statistics -> SOLUTION: Mandy is considering a lawsuit against a chemical company. Erin, her lawyer, estimated that there is a 65% chance Mandy will make $150,000, a 10% chance Mandy will break even, and       Log On


   

Question 1118772: Mandy is considering a lawsuit against a chemical company. Erin, her lawyer, estimated that there is a 65% chance Mandy will make $150,000, a 10% chance Mandy will break even, and a 25% chance they will lose the case and Sherri will need to pay $50,000 in legal fees. What is Mandy's expected gain or loss if she proceeds with the lawsuit?
Answer by solver91311(24713) About Me  (Show Source):
You can put this solution on YOUR website!




You can do your own arithmetic. A positive value indicates an expected gain, a negative value is a loss. However, since Sherri is paying the 50K in legal fees, Mandy has no possibility of a loss. Either that or you are an extremely lazy proofreader.


John

My calculator said it, I believe it, that settles it