Question

A small software company bids on two contracts. It anticipates a profit of $60,000 if it gets the larger contract and $25,000 if it gets the smaller contract. The company estimates that there is a 32% chance it will get the larger contract and a 62% chance it will get the smaller contract.If the company does not get either of the contracts it will not gain or lose any money. Assuming the contracts will be awarded independently, what's the expected profit?

I am so lost on this...

Answer 1

12