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A construction company is considering jubmitting bids for two contracts. It will cost the company $10,000 to prepare and submit the bids, and if won, each bid would produce $50,000 of income to the company. The company estimates that it has a 10% chance of winning any given bid. Here is the probability distribution of X = the number of bids the company wins, and M = the amount of money the company profits from the bids. X # of bids won 1 profit -$10,000 $40,000 $90,000 %3D Probability 0.81 0.18 0.01 Find the expected value of the number of bids won. E(X) = bids

A construction company is considering jubmitting bids for two contracts. It will cost the company $10,000 to prepare and submit the bids, and if won, each bid would produce $50,000 of income to the company. The company estimates that it has a 10% chance of winning any given bid. Here is the probability distribution of X = the number of bids the company wins, and M = the amount of money the company profits from the bids. X # of bids won 1 profit -$10,000 $40,000 $90,000 %3D Probability 0.81 0.18 0.01 Find the expected value of the number of bids won. E(X) = bids

Holt Mcdougal Larson Pre-algebra: Student Edition 2012
Holt Mcdougal Larson Pre-algebra: Student Edition 2012
1st Edition
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
Chapter11: Data Analysis And Probability
Section11.8: Probabilities Of Disjoint And Overlapping Events
Problem 2C
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A construction company is considering jubmitting bids for two contracts. It will cost the company $10,000 to prepare and submit the bids, and if won, each bid would produce $50,000 of income to the company. The company estimates that it has a 10% chance of winning any given bid. Here is the probability distribution of X= the number of bids the company wins, and M the amount of money the company profits from the bids. X # of bids won 0. 1 profit -210,000 $40,000 $90,000 Probability 0.81 0.18 0.01 Find the expected value of the number of bids won. E(X) = bids
Transcribed Image Text:A construction company is considering jubmitting bids for two contracts. It will cost the company $10,000 to prepare and submit the bids, and if won, each bid would produce $50,000 of income to the company. The company estimates that it has a 10% chance of winning any given bid. Here is the probability distribution of X= the number of bids the company wins, and M the amount of money the company profits from the bids. X # of bids won 0. 1 profit -210,000 $40,000 $90,000 Probability 0.81 0.18 0.01 Find the expected value of the number of bids won. E(X) = bids
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