SOLUTION: A contractor is considering a sale that promises a profit of $20,000 with a probability of .7 or a loss (due to bad weather, strikes, and such) of $3000 with a probability of .3. W

Algebra ->  Probability-and-statistics -> SOLUTION: A contractor is considering a sale that promises a profit of $20,000 with a probability of .7 or a loss (due to bad weather, strikes, and such) of $3000 with a probability of .3. W      Log On


   

Question 211071: A contractor is considering a sale that promises a profit of $20,000 with a probability of .7 or a loss (due to bad weather, strikes, and such) of $3000 with a probability of .3. What is the expected profit?
Answer by edjones(8007) About Me  (Show Source):
You can put this solution on YOUR website!
(20000*.7)-(3000*.3)
=14000-900
=$13,100. expected profit
.
Ed