Do you think this is a good idea? Find the expected value of hosting the tournament.

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 local club plans to host a tennis tournament. The club will invest $12,000 and hopes to sell tickets worth $18,000. The
weather forecast Is a 20% chance of rain. If It does rain, the tournament will be cancelled, and the club will lose all of its
Investment. Do you think this is a good Idea? Find the expected value of hosting the toumament.
O $6,000
O $2400
$12,000
$8,400
Transcribed Image Text:A local club plans to host a tennis tournament. The club will invest $12,000 and hopes to sell tickets worth $18,000. The weather forecast Is a 20% chance of rain. If It does rain, the tournament will be cancelled, and the club will lose all of its Investment. Do you think this is a good Idea? Find the expected value of hosting the toumament. O $6,000 O $2400 $12,000 $8,400
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