A Company Bids on Two Contracts

Multiple Choice

A company bids on two contracts.It anticipates a profit of $70,000 if it gets the larger contract and a profit of $30,000 if it gets the smaller contract.It estimates that there's a 10% chance of winning the larger contract and a 60% chance of winning the smaller contract.Find the standard deviation of the company's profit.Assume that the contracts will be awarded independently.

A) $30,758
B) $24,863
C) $25,632
D) $29,477
E) $28,195