Question

A small software company bids on two contracts. It anticipates a profit of ​$40 comma 000 if it gets the larger contract and a profit of ​$20 comma 000 if it gets the smaller contract. The company estimates that there is a 31​% chance it will get the larger contract and a 56​% chance it will get the smaller contract. If the company does not get either​ contract, it will neither gain nor lose money. Assuming the contracts will be awarded​ independently, what's the expected​ profit?

Answer 1

Answer:

$27,000

Step-by-step explanation: