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1 A construction company is planning to bid on a building contract. The bid costs the company $2000. The probability that the bid is accepted is . If the bid is accepted, the company will make $35,000 minus the cost of the bid. ..... a. What is the expected value in this situation? (Round to the nearest dollar.) b. Choose the statement below that best describes what this value means. O A. In the long run, the construction company would expect to break even on average. O B. In the long run, the construction company would expect to earn this amount on average per bid. O C. In the long run, the construction company would expect to lose this amount on average per bid. O D. None of the above.

1 A construction company is planning to bid on a building contract. The bid costs the company $2000. The probability that the bid is accepted is . If the bid is accepted, the company will make $35,000 minus the cost of the bid. ..... a. What is the expected value in this situation? (Round to the nearest dollar.) b. Choose the statement below that best describes what this value means. O A. In the long run, the construction company would expect to break even on average. O B. In the long run, the construction company would expect to earn this amount on average per bid. O C. In the long run, the construction company would expect to lose this amount on average per bid. O D. None of the above.

A First Course in Probability (10th Edition)
A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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A construction company is planning to bid on a building contract. The bid costs the company $2000. The probability that the bid is accepted is If the bid is accepted, the company will make $35,000 minus the cost of the bid. a. What is the expected value in this situation? 2$ (Round to the nearest dollar.) b. Choose the statement below that best describes what this value means. O A. In the long run, the construction company would expect to break even on average. O B. In the long run, the construction company would expect to earn this amount on average per bid. O C. In the long run, the construction company would expect to lose this amount on average per bid. O D. None of the above.
Transcribed Image Text:A construction company is planning to bid on a building contract. The bid costs the company $2000. The probability that the bid is accepted is If the bid is accepted, the company will make $35,000 minus the cost of the bid. a. What is the expected value in this situation? 2$ (Round to the nearest dollar.) b. Choose the statement below that best describes what this value means. O A. In the long run, the construction company would expect to break even on average. O B. In the long run, the construction company would expect to earn this amount on average per bid. O C. In the long run, the construction company would expect to lose this amount on average per bid. O D. None of the above.
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