A contractor is considering whether he should take on a project that promises a profit of $8800 with a probability of 0.83 or a loss (due to bad weather, strikes, etc.) of $2900 with a probability of 0.17. What is the expected profit for the contractor

Question

Mathematics

Aryana Buck

4 September, 06:48

A contractor is considering whether he should take on a project that promises a profit of $8800 with a probability of 0.83 or a loss (due to bad weather, strikes, etc.) of $2900 with a probability of 0.17. What is the expected profit for the contractor

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Answers (1)

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Danika Mitchell · Answer 1

Answer: 6811

Step-by-step explanation:

in this problem the values are 8800 and - 2900 and the respective probabilities are 0.83 and 0.17

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so the expected profit o# sum = (x*P (x)) = 8800 * (0.83) + (-2900) * (0.17) = 6811