A Company Bids on Two Contracts

question 93

Multiple Choice

A company bids on two contracts.It anticipates a profit of $50,000 if it gets the larger contract and a profit of $10,000 if it gets the smaller contract.It estimates that there's a 10% chance of winning the larger contract and a 70% chance of winning the smaller contract.Create a probability model for the company's profit.Assume that the contracts will be awarded independently.

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Definitions:

Separate Legal Personality

The legal principle that a corporation or certain other entities exist independently of their shareholders or members, capable of owning property, incurring debt, suing, and being sued.

Significant Results

Outcomes or findings that are notably impactful, meaningful, or exceed expected benchmarks, often used in the context of research, projects, or performance evaluations.

Corporation

A legal entity that is separate and distinct from its owners, offering limited liability to its shareholders.

Closely Held Corporations

Corporations in which there are relatively few shareholders; referred to as non-distributing corporations in some jurisdictions.