Find the Expected Value

question 76

Multiple Choice

Find the expected value.
-A contractor is considering a sale that promises a profit of $39,000 with a probability of 0.7 or a loss (due to bad weather, strikes, and such) of $3000 with a probability of 0.3. What is the expected profit?

• A)$29,400
• B)$36,000
• C)$27,300
• D)$26,400

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Definitions:

Operating Efficiencies

The ratio of productive output to operational inputs, reflecting the effectiveness and economy with which resources are utilized in production.

Multidomestic Strategy

A business strategy where a company adapts its products, marketing, and operations to suit specific local markets in each country it operates.

Customizes Products

The act of modifying products to meet the preferences or requirements of different customers.

Downsizing

Decreasing the size of operations.