Question 55306
The Sandman construction Co. bids on a job to construct a building. If the bid is won, there is a 0.7 probability of making a $175,000 profit and there is a probability of 0.3 that the contractor will break even. What is the Expected value? 
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"Break even" means you make no profit---zero.
Expected profit = (0.7)(175,000)+0.3(0)= $122,500
Cheers,
Stan H.