The proprietor of Midland Construction Company has to decide between two projects. He estimates that the first project will yield a profit of $180,000 with a probability of 0.7 or a profit of $120,000 with a probability of 0.3; the second project will yield a profit of $230,000 with a probability of 0.6 or a profit of $70,000 with a probability of 0.4. Find the expected profit for each project. first project $ second project      $

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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The proprietor of Midland Construction Company has to decide between two projects. He estimates that the first project will yield a profit of $180,000 with a probability of 0.7 or a profit of $120,000 with a probability of 0.3; the second project will yield a profit of $230,000 with a probability of 0.6 or a profit of $70,000 with a probability of 0.4.

Find the expected profit for each project.

first project $
second project      $
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