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salantis [7]
3 years ago
9

A coffee franchise is opening a new store. The company estimates that there is a 70% chance the store will have a profit of $50,

000, a 5% chance the store will break even, and a 25% chance the store will lose $3,500. Determine the expected gain or lose for this store.
Mathematics
1 answer:
aivan3 [116]3 years ago
8 0

Step-by-step explanation:

The expected value is the sum of each outcome times its probability.

E = (0.70)(50000) + (0.05)(0) + (0.25)(-3500)

E = 34125

The store is expected to gain $34,125.

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