Solve the problem.
-A contractor is considering a sale that promises a profit of $23,000 with a probability of 0.7 or a loss (due to bad weather, strikes, and such)of $13,000 with a probability of 0.3. What is the expected profit?
A)$12,200
B)$25,200
C)$16,100
D)$10,000

Question

Quizplus · Accepted Answer

The expected profit is calculated by multiplying each outcome by its probability and summing these products: (0.7 * $23,000) + (0.3 * -$13,000) = $16,100 - $3,900 = $12,200.

Solve the Problem. -A Contractor Is Considering a Sale That Promises a Profit