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andreyandreev [35.5K]
3 years ago
7

Phil Dunphy, a real estate agent, is considering whether he should list an unusual $262,023 house for sale. If he lists it, he w

ill need to spend $3,111 in advertising, staging, and fresh cookies. The current owner has given Phil 6 months to sell the house. If he sells it, he will receive a commission of $19,752. If he is unable to sell the house, he will lose the listing and his expenses. Phil estimates the probability of selling this house in 6 months to be 40%. What is the expected profit on this listing?
Mathematics
1 answer:
Karo-lina-s [1.5K]3 years ago
3 0

Answer: $4,789.80

Step-by-step explanation:

If Phil is able to sell the house, the profit he makes will be;

= Commission - expenses

= 19,752 - 3,111

= $16,641

If he is unable to sell in 6 months he will lose $3,111.

His expected profit will be a weighted average of the two possibilities;

= (40% * 16,641) + ( 60% * -3,111)

= ‭6,656.4‬0 + (-‭1,866.6‬)

= $4,789.80

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<h3>What are exponential forms?</h3>

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<u>For example:</u>

If we have a*a*a*a, it can be written in exponential form as:

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From the information given:

We can write 2^8 * 8^2 * 4^-4 in form of 2^n as follows:

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brainly.com/question/8844911

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