A contractor is considering a sale that promises a profit of $25,000 with a probability of 0.7 or a loss (due to bad weather, strikes, and such) of $2000 with a probability of 0.3. What is the expected profit?
Added by Mark F.
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The profit is $25,000 with a probability of 0.7, so the expected profit from this scenario is $25,000 * 0.7 = $17,500. Show more…
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A contractor is considering a sale that promises a profit of $26,000 with a probability of 0.7 or a loss (due to bad weather, strikes, and such) of $8,000 with a probability of 0.3. What is the expected profit?
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Find the expected value of the random variable. Round to the nearest cent unless stated otherwise. A contractor is considering a sale that promises a profit of $26,000 with a probability of 0.7 or a loss (due to bad weather, strikes, and such) of $3,000 with a probability of 0.3. What is the expected profit? Round the answer to the nearest dollar. $23,000 $18,200 $20,300 $17,300
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