Find the Expected Value of the Random Variable

question 63

Multiple Choice

Find the expected value of the random variable. Round to the nearest cent unless stated otherwise.
-A contractor is considering a sale that promises a profit of $27,000 with a probability of 0.7 or a loss (due to bad weather, strikes, and such) of $2000 with a probability of 0.3. What is the expected
Profit? Round the answer to the nearest dollar.

• A)$18,300
• B)$20,300
• C)$25,000
• D)$18,900

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Definitions:

Shannon-Weaver

Refers to the Shannon-Weaver Model of Communication, a theoretical framework that outlines how information is transmitted from a sender to a receiver, emphasizing the components and processes involved in communication.

Communication Channel

The medium through which a message is transmitted from a sender to a receiver, such as verbal, non-verbal, written, and digital formats.

Sender

In communication, the party who transmits a message to a receiver.

Noise

Any unwanted sound or a distraction that interferes with the communication process, affecting the clarity of the message being sent or received.