Ask a New Question

Question

A contractor is considering a sale that promises a profit of $20,000 with a probability of .7 or a loss ( due to bad weather, strikes, and such) of $3000 with a probability of .3. What is the expected profit?

a. 13,100
b. 17,000
c. 14,000
d. 16,100
15 years ago

Answers

bobpursley
expected value of profit= .7*20,000 -.3*3000

15 years ago

Related Questions

A contractor must pay a $40,000 penalty if construction of an expense home requires more than 16 wee... 1) It took a contractor 1285 hours to manufacture their first unit of an item. If the contractor ex... A contractor is considering a sale that promises a profit of $ 26,000 with a probability of .7 or a... {lease help :) A contractor is considering a sale that promises a profit of $20,000 with a probabili... (10 Points) A contractor is trying to estimate the distance to be expected of a drawdown of 4.81... A contractor is considering a sale that promises a profit of $30,000 with a probability of .7 or a l... A contractor needs to know the height of a building to estimate the cost of a job. From a point 84 f... A contractor gives a quote of $21,060 to build an 18 foot by 24 foot barn. What is the building cost... a contractor needs two men and 5 litres of paint to paint on a fenced wall that is 40m by 3m in 9 ho... A contractor needs 2 men and 5 litres of paint to paint a fence wall,40m * 3m in 9hours. How many me...
Ask a New Question
Archives Contact Us Privacy Policy Terms of Use