Find the Expected Value

question 190

Multiple Choice

Find the expected value.
-A contractor is considering a sale that promises a profit of $39,000 with a probability of .7 or a loss (due to bad weather, strikes, and such) of $11,000 with a probability of .3. What is the expected
Profit?

• A)$27,300
• B)$35,000
• C)$24,000
• D)$28,000