is 0.40. For a premium of $29,000 David can purchase insurance coverage that would pay him $100,000 in case of rain. Fi
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
David, the promoter of an outdoor concert, expects a net profit of $100,000, unless it rains, which would reduce the net profit to $25,000. The probability of rain is 0.40. For a premium of $29,000 David can purchase insurance coverage that would pay him $100,000 in case of rain. Find the expected net profit when the insurance is not purchased.
The expected net profit will be $ ___________ when the insurance is not purchased.
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