Question 263215: A ski resort profits $1,500,000 during a good winter with lots of snow. The resort has a loss of $500,000 otherwise. The resort’s historical climate data suggests that the probability of a good winter with lots of snow during any given year is 40%. What is the expected profit for the ski resort?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! A ski resort profits $1,500,000 during a good winter with lots of snow. The resort has a loss of $500,000 otherwise. The resort’s historical climate data suggests that the probability of a good winter with lots of snow during any given year is 40%. What is the expected profit for the ski resort?
E(x) = 0.4*1500000 - 0.6*500000
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Cheers,
Stan H.
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