A car wash loses $30 on rainy days and makes $120 on days when it does not rain.If the probability of rain is 0.15,calculate expected profit for the car wash.
A)$90
B)$76.50
C)$106.50
D)$97.50

Question

Quizplus · Accepted Answer

The expected profit is calculated as: (Probability of rain * Loss on rainy days) + (Probability of no rain * Profit on non-rainy days) = (0.15 * -30) + (0.85 * 120) = -4.5 + 102 = 97.50.

A Car Wash Loses $30 on Rainy Days and Makes