SOLUTION: a mining company is considering two sites on which to dig, described as follows site A- profit if diamonds are found $70 million. Loss if no diamonds are found $25 million. pr

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Question 376708: a mining company is considering two sites on which to dig, described as follows
site A- profit if diamonds are found $70 million. Loss if no diamonds are found $25 million. probability of finding diamonds 0.2
site B- profit if diamonds are found $110 million. loss if no diamonds are found $16 million. probabilty of finding diamonds 0.1
What is the expected profit for each site?
Answer by solver91311(24713) About Me  (Show Source):
You can put this solution on YOUR website!


Site A: ($70M X 0.2) - ($25M X 0.8)

Use the same method to calculate the expected return for site B.

John

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