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

Nestle

28 November, 20:21

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

+5

Answers (1)

Know the Answer?

Jadyn Gates · 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

--

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