SOLUTION: Suppose that an antique jewelry dealer is inter-ested in purchasing a gold necklace for which the prob-abilities are 0.22, 0.36, 0.28, and 0.14, respectively, that she will be able

Algebra ->  Probability-and-statistics -> SOLUTION: Suppose that an antique jewelry dealer is inter-ested in purchasing a gold necklace for which the prob-abilities are 0.22, 0.36, 0.28, and 0.14, respectively, that she will be able      Log On


   

Question 1159388: Suppose that an antique jewelry dealer is inter-ested in purchasing a gold necklace for which the prob-abilities are 0.22, 0.36, 0.28, and 0.14, respectively, that she will be able to sell it for a profit of $250, sell it for a profit of $150, break even, or sell it for a loss of $150. What is her expected profit?
Answer by Shin123(626) About Me  (Show Source):
You can put this solution on YOUR website!
The expected profit is 0.22%2A250%2B0.36%2A150%2B0.28%2A0-0.14%2A150=55%2B54-21=109-21=highlight%2888%29. So the expected profit is $88.