0.7*36,000 - 0.3*3,000 = 24,300
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