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Math Help - Profit Probability

  1. #1
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    Post Profit Probability

    This is a homework question I have been stuck on for several days. Just found this place so thought one of you might be able to help out.

    "A contractor is considering a sale that promises a profit of $36,000 with a probability of 0.7 or a loss of $3000 with a probability of 0.3. What is the expected profit?"

    Thanks much in advance,

    MrBlack
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  2. #2
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    0.7*36,000 - 0.3*3,000 = 24,300
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  3. #3
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    It really is just that simple? wow... I always over-complicate things
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