Question

Organizers of an outdoor summer concert in Toronto are concerned about the weather conditions on the day of the concert. They will make a profit of $42,000 on a clear day and $12,000 on a cloudy day. They will make a loss of $6,000 if it rains. The weather channel has predicted a 52% chance of rain on the day of the concert. Calculate the expected profit from the concert if the likelihood is 11% that it will be sunny and 37% that it will be cloudy.

Answer 1

Answer:

$5,940

Explanation:

Calculation for the expected profit

Expected profit= (42,000*0.11)+(12,000*0.37)+(-6,000*0.52)

Expected profit=4,620+4,440+(-3,120)

Expected profit=$5,940

Therefore Expected profit will be $5,940