Manny B.
asked • 11/18/15I dont understand what to do here.
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?
More
2 Answers By Expert Tutors
Iddi S. answered • 11/18/15
Tutor
5
(1)
A CPA to help you: Bookkeping, Quickbooks, Taxes, Accounting and Train
Expected value = (34,000*0.7)+ (-5000*0.3) =22300
Chaoyun L. answered • 11/18/15
Tutor
1
(1)
Master of Math with concentration in Statistics
Expected value = 34,000*0.7-5000*0.3 =22300
Still looking for help? Get the right answer, fast.
Ask a question for free
Get a free answer to a quick problem.
Most questions answered within 4 hours.
OR
Find an Online Tutor Now
Choose an expert and meet online. No packages or subscriptions, pay only for the time you need.
David W.
11/18/15