00:01
In this problem, information is given about the profit or the loss that an antique jewelry dealer can make on purchasing a gold necklace and the respective probabilities for that are also given.
00:16
We need to find the expected profit.
00:19
Now the expected profit will be e of x, where the random variable x represents the profit made, and this is equal to summation x times.
00:30
P of x is equal to x which is the sum of the products of the outcomes and their respective probabilities now the first outcome is selling it for a profit of 250 dollars so x will be 250 we multiply that with its respective probability which is given to be equal to 0 .2 we add the next product now the next outcome is a profit of 150, so we have 150 for x, and the probability of that is 0 .3.
01:06
The next outcome is to break even.
01:10
Now, if you break even, then that means there is no profit and no loss, so that means a profit of 0, and with that we multiply the respective probability, which is 0 .4.
01:21
And the last probability, the last outcome is selling it for a loss of $150...