Question

Provide an appropriate response. A contractor is considering a sale that promises a profit of $33,000 with a probability of 0.7 or a loss (due to bad weather, strikes, and such) of $16,000 with a probability of 0.3. What is the expected profit? (A) $17,000 (B) $34,300 (C) $18,300 (D) $23,100

          Provide an appropriate response.
A contractor is considering a sale that promises a profit of $33,000 with a probability of 0.7 or a loss (due to bad weather, strikes, and such) of $16,000 with a probability of 0.3. What is the expected profit?
(A) $17,000
(B) $34,300
(C) $18,300
(D) $23,100

Provide an appropriate response.
A contractor is considering a sale that promises a profit of 33,000 with a probability of 0.7 or a loss (due to bad weather, strikes, and such) of16,000 with a probability of 0.3. What is the expected profit?
(A) 17,000
(B)34,300
(C) 18,300
(D)23,100

Added by Sarah P.

Elementary Statistics a Step by Step Approach

Allan G. Bluman 9th Edition

Instant Answer

Solved by Expert Qudsiya Anis

04/07/2022

Step 1

Step 1: Calculate the expected profit using the formula: Expected Profit = (Profit * Probability of Profit) - (Loss * Probability of Loss) Show more…

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Provide an appropriate response. A contractor is considering a sale that promises a profit of $33,000 with a probability of 0.7 or a loss (due to bad weather, strikes, and such) of $16,000 with a probability of 0.3. What is the expected profit? (A) $17,000 (B) $34,300 (C) $18,300 (D) $23,100