Lobster Liquidators Will Make $500,000 If the Fishing Season Weather

Multiple Choice

Lobster Liquidators will make $500,000 if the fishing season weather is good, $200,000 if the weather is fair, and would actually lose $50,000 if the weather is poor during the season. If the weather service gives a 40% probability of good weather, a 25% probability of fair weather, and a 35% probability of poor weather, what is the expected value of the profit for Lobster Liquidators?

A) $500,000
B) $232,500
C) $267,500
D) $200,000
E) $217,000