Question 329739: 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 stanbon(75887)   (Show Source):
You can put this solution on YOUR website! 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?
---------------------------------
E(x) = 20000*0.7 + 3000*0.3 = =$14,900
======================================
Cheers,
Stan H.
|
|
|
