A coffee franchise is opening a new store. The company estimates that there is an 80% chance the store will have a profit of $45,000, a 15% chance the store will break even, and a 5% chance the store will lose $2,500. Determine the expected gain or loss for this store. The expected value is $ (Round to the nearest cent as needed.)
A coffee franchise is opening a new store. The company estimates that there is an 80% chance the store will have a profit of $45,000, a 15% chance the store will break even, and a 5% chance the store will lose $2,500. Determine the expected gain or loss for this store. The expected value is $ (Round to the nearest cent as needed.)
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter10: Sequences, Series, And Probability
Section: Chapter Questions
Problem 35T
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Transcribed Image Text:A coffee franchise is opening a new store. The company estimates that there is an 80% chance the store will have a profit of $45,000, a 15% chance the
store will break even, and a 5% chance the store will lose $2,500. Determine the expected gain or loss for this store.
The expected value is $. (Round to the nearest cent as needed.)
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