Find the Expected Value $\$ 48,666$ Project B $\$ 49,666$ Contractor Should Choose Project a

B) Project A

question 25

Multiple Choice

Find the expected value.
-A commercial building contractor is trying to decide which of two projects to commit her company to.
Project A will yield a profit of $50,000 with a probability of 0.6, a profit of $86,000 with a Probability of 0.3, and a profit of $10,000 with a probability of 0.1.
Project B will yield a profit of $100,000 with a probability of 0.1, a profit of $69,000 with a Probability of 0.7, and a loss of $20,000 with a probability of 0.2.
Find the expected profit for each project. Based on expected values, which project should the Contractor choose?

• A) Project A: \(\$ 48,666\)
• Project B: \(\$ 49,666\)
• Contractor should choose project A
• B) Project A: \(\$ 47,800\)
• Project B: \(\$ 54,300\)
• Contractor should choose project B
• C) Project A: \(\$ 56,800\)
• Project B: \(\$ 62,300\)
• Contractor should choose project B
• D) Project A:\$56,800
• Project B: \(\$ 54,300\)
• Contractor should choose project A

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Definitions:

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Clothing or apparel worn by individuals, often reflecting personal style, occasion, or social norms.

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A continuous, unvarying pitch or tone of voice that can make speech sound dull and unengaging.