Question 362004
Their market research, considering the cost of the new machines and their efficiency, tells them that the switch would give them a 96% chance of making a $20,000 profit, a 1% chance of breaking even, and a 3% chance of losing $5,000. How much money does PuroServ expect to make with their new purchase? 
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Let the random values be "gain" to the company
X-values are 20,000; 0; -5000
probabilities are: 0.96; 0.01; 0.03
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Expected gain = 20,000*0.96 + 0*0.01 - 5000*0.03 = $19050.00
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Cheers,
Stan H.
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