A construction company is planning to bid on a building contract. The bid costs the company $1300. the probability that the bid is accepted is 2/5. If the bid is accepted, the company will make $9,500 minus the cost of the bid. what is the expected value in this situation? Choose the statement below that best describes what this value means. A. In the long run, the construction company would expect to break even on average. B. In the long run, the construction company would expect to lose this amount on average per bid. C. In the long run, the construction company would expect to earn this amount on average per bid. D. None of the above.

A construction company is planning to bid on a building contract. The bid costs the company $1300. the probability that the bid is accepted is 2/5. If the bid is accepted, the company will make $9,500 minus the cost of the bid. what is the expected value in this situation? Choose the statement below that best describes what this value means. A. In the long run, the construction company would expect to break even on average. B. In the long run, the construction company would expect to lose this amount on average per bid. C. In the long run, the construction company would expect to earn this amount on average per bid. D. None of the above.

Name: A construction company is planning to bid on a building contract. The
Uploaded: 2024-03-20T07:06:41.000Z
Channel: Bartleby
Description: A construction company is planning to bid on a building contract. The bid costs the company $1300. the probability that the bid is accepted is 2/5. If the bid is accepted, the company will make $9,500 minus the cost of the bid.what is the expected v

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...

See similar textbooks

Similar questions

Solve the question please
It is estimated that there are 31 deaths for every 10 million people who use airplanes. A company that sells flight insurance provides $100,000 in case of death in a plane crash. A policy can be purchased for $1. Calculate the expected value and thereby determine how much the insurance company can make over the long run for each policy that it sells. POSSIDIE possib The expected value is $ (Round to the nearest cent.) Next Ce ) backspace 98888 & C@ #3 $4 8. 6. 3. { 大

Help
An architect is considering bidding for the design of a new museum. The cost of drawing plans and submitting a model is $18,000. The probability of being awarded the bid is 0.2. If the architect is awarded the bid, she will make $90,000 minus the $18,000 cost for plans and a model. Complete parts a. through b. below. 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 architect would expect to earn this amount. OB. In the long run, the architect would expect to lose this amount. O C. In the long run, the architect would expect to break even. O D. None of the above. C
Oxnard petri Ltd is buying hurricane insurance for it's off-coast drilling platform. During the next five years, the probability of total loss of only the above-water superstructure ($250 million) is .25, the probability of total loss of the facility ($950 million) is.25, and the probability of no loss is.50. Find the expected loss.( Input the amount as a positive value.) Expected Loss is what?
You purchase a brand new car for $15,000 and insure it. The policy pays 78% of the car's value if there is an issue with the engine or 30% of the car's value if there is an issue with the speaker system. The probability of an issue with the engine is 0.009, and the probability there is an issue with the speaker system is 0.02. The premium for the policy is p. Let X be the insurance company's net gain from this policy. (a) Create a probability distribution for X, using p to represent the premium on the policy. Enter the possible values of X in ascending order from left to right. P(X) (b) Compute the minimum amount the insurance company will charge for this policy. Round your answer to the nearest cent
A lottery offers one $2000 prize, one $900 prize and five $200 prizes.One thousand tickets are sold at $5 each. Find the expectation if a person buys oneticket.
Answer #30 please. Show work.
A gambler uses theory to calculate the probability of winning a card game and gets P(winning) = 0.10. Which option best describes the meaning of this probability? A. He will win 10 times B. In the long run he will win approximately 10% of the time C. He will win on every 10th play D. He is guaranteed to win exactly 10% of the time
Your friend convinces you to play a game where you roll a standard die one time. It costs $5 to play the game. If you roll a 3 or a 4 you win $9. Any other roll wins nothing. 4. Find the expected value of this game.
A bag contains 3 red marbles, 9 white marbles, and 15 blue marbles. You randomly select one marble from the bag. If it is red, you win $4. If it is white, you win $2. If it is blue, you lose $1. What is your expected value when playing this game? Round your answer to the nearest cent.
200,000 lottery tickets are sold for $3 each. There is one jackpot prize of $50,000, 25 second prizes of $2000, and 100 third prizes of $40. Find the expected value of your profit when you buy a ticket. Round your answer to the nearest cent.