1. ## Rock concert probability!

A rock concert producer has scheduled an outdoor concert. If it is warm that day, she expects to make a €20,000 profit. If it is cool that day, she expects to make a €5,000 profit. If it is very cold that day, she expects to suffer a €12,000 loss. Based upon historical records, the weather office has estimated the chances of a warm day to be .6 and the chances of a cool day to be .25. What is the producer’s expected profit?

2. Originally Posted by matty888
A rock concert producer has scheduled an outdoor concert. If it is warm that day, she expects to make a €20,000 profit. If it is cool that day, she expects to make a €5,000 profit. If it is very cold that day, she expects to suffer a €12,000 loss. Based upon historical records, the weather office has estimated the chances of a warm day to be .6 and the chances of a cool day to be .25. What is the producer’s expected profit?
(20,000)(0.6) + (5,000)(0.25) + (-12,000)(0.15) = ......

Do you understand where the stuff in red comes from?

3. yep understand it now thanks!!