Question 1199127: An architect is considering bidding for the design of a gnu museum. The cost of drawling plans and submitting a model is $12,000. The probability of being awarded the bed is .2. If the architect is awarded the bed, she won’t make $60,000 minus the $12,000 cost for plans and a model. What is the expected value in the situation
Answer by ikleyn(52873)   (Show Source):
You can put this solution on YOUR website! .
An architect is considering bidding for the design of a gnu museum. The cost of drawling plans and submitting a model is $12,000.
The probability of being awarded the bed is .2. If the architect is awarded the  bid,
she  make $60,000 minus the $12,000 cost for plans and a model. What is the expected value in the situation
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The expected value is 0.2*60,000 - 12,000 = 0 (zero dollars and zero cents). ANSWER
Solved.
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