A construction company is planning to bid on a building contract. The bid costs the company $2000. The probability that the bid is accepted is one fifth(1/5). If the bid is​ accepted, the company will make ​$47,500 minus the cost of the bid.   A. What is the expected value in this situation? (round to the nearest dollar.)    B. Choose the statement below that best describes what this value means.   A.In the long​ run, the construction company would expect to lose this amount on average per bid.   B.In the long​ run, the construction company would expect to earn this amount on average per bid.   C.In the long​ run, the construction company would expect to break even on average.   D.None of the above.

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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A construction company is planning to bid on a building contract. The bid costs the company $2000. The probability that the bid is accepted is one fifth(1/5). If the bid is​ accepted, the company will make ​$47,500 minus the cost of the bid.
 
A. What is the expected value in this situation? (round to the nearest dollar.) 
 
B. Choose the statement below that best describes what this value means.
 
A.In the long​ run, the construction company would expect to lose this amount on average per bid.
 
B.In the long​ run, the construction company would expect to earn this amount on average per bid.
 
C.In the long​ run, the construction company would expect to break even on average.
 
D.None of the above.
 
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