I dont understand what to do here.

Question

A contractor is considering a sale that promises a profit of $34,000 with a probability of .7 or a loss (due to bad weather and such) of $5,000 with a probability of .3. What is the expected profit?

Answer 1

Expected value = (34,000*0.7)+ (-5000*0.3) =22300

Answer 2

Expected value = 34,000*0.7-5000*0.3 =22300