Ask Question
16 March, 12:25

A lawyer believes that the probability is. 3 that she can win a discrimination suit. if she wins the case she will make $40,000, but if she loses she gets nothing. assume that she has to spend $5000 preparing the case. what is her expected gain?

+2
Answers (1)
  1. 16 March, 14:45
    0
    Her expected gain is $7,000 based on the information shown on the question above. This problem can be solved by using the expected value formula which stated as EV = W*Pw-L*Pw where EV is the expected value, W is the win value, Pw is the probability of winning, L is the lost value and Pl is the probability of losing. Calculation: 7,000 = (40,000-5,000) * 0.3 - 5,000 * (1-0.3)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A lawyer believes that the probability is. 3 that she can win a discrimination suit. if she wins the case she will make $40,000, but if she ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers