Answer:
Hence the expected value for the contractor for sales is 15,300 $.
Step-by-step explanation:
Given:
Winning $27000 is 0.7 and losing 12000 $ of it about 0.3
To find :
Expected value for the contractor for sales.
Solution:
Th expected value is the average occurred of the event.
<em>{Suppose </em>
<em>a series of number like 10,30,30,30,30,60,78.</em>
<em>for this expected value will be</em>
<em>(10+30+30+30+30+60+78+78) / 8</em>
<em>=10(1/8)+30(4/8)+60(1/8)+78(2/8).</em>
<em>78 ,10 ,30 and 60 are just like cost and 1/8 ,4/8,2/8 are probabilities of respective cost</em>.
}
Similar for given values
Expected value with probability is =
Winning probability *cost of winning +(-losing probability * losing cost)
losing means negative impact on value so it is negative
=27000*0.7-12000*0.3
=18900-3600.
=15300 $.
