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A Contractor Is Considering a Sale That Promises a Profit

Question 40

Multiple Choice

A contractor is considering a sale that promises a profit of $24,000 with a probability of 0.7 or a loss (due to bad weather,strikes,and such) of $9,000 with a probability of 0.3.What is the expected profit?


A) $15,000
B) $16,800
C) $23,100
D) $19,500
E) $14,100

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