Question

A rock concert producer has scheduled an outdoor concert. If it is warm that day, she expects to make a $20,000 profit. If it is cool that day, she expects to make a $5,000 profit. If it is very cold that day, she expects to suffer a $12,000 loss. Based upon historical records, the weather office has estimated the chances of a warm day to be .60; the chances of a cool day to be .25. What is the producer’s expected profit?

Answer 1

The producer’s profit is 37,000