Dundee Crocodile Hunters will make $500 000 if the hunting season weather is good,$200 000 if the weather is fair,and would actually lose $50 000 if the weather is poor during the season.If the weather service gives a 40% probability of good weather,a 25% probability of fair weather,and a 35% probability of poor weather,what is the expected monetary value for Dundee Crocodile Hunters?

Question

Quizplus · Accepted Answer

To find the expected monetary value, we need to multiply the probabilities of each type of weather by the corresponding profit/loss and add them up:

Expected value = (0.4 x $500,000) + (0.25 x $200,000) + (0.35 x -$50,000)
Expected value = $200,000 + $50,000 - $17,500
Expected value = $232,500

Therefore, the best choice for the expected monetary value is answer B, which is $232,500.

Dundee Crocodile Hunters Will Make $500 000 If the Hunting