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vaieri [72.5K]
3 years ago
6

A coffee franchise is opening a new store. The company estimates that there is an 80% chance the store will have a profit of $10

0,000, a 10% chance of the store will break even, and a 10% chance of the store will lose $2,500. Determine the expected gain or loss for this store
Mathematics
1 answer:
natta225 [31]3 years ago
5 0

Answer:

$70,750

Step-by-step explanation:

The expected gain/loss is found by <em>adding the products of all of the profits/losses by their probability</em>. So,

<em>(0.8 * 100000) + (0.1 * 0) + (0.1 * -2500)</em> =

<em>80000 + 0 + -250</em> =

$70750

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