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A fast-food company plans to install a new ice-cream dispensing unit in one of two store locations. The company figures that the probability of a unit being successful in location A is 3/4, and the annual profit in this case is $150,000. If it is not successful there will be losses of $80,000. At location B the probability of succeding is 1/2, but the potential profit and loss are $240,000 and $48,000, respectively. Calculate the expected profit at location A. Your final answer must be a number. Please round it to two decimal places.

A fast-food company plans to install a new ice-cream dispensing unit in one of two store locations. The company figures that the probability of a unit being successful in location A is 3/4, and the annual profit in this case is $150,000. If it is not successful there will be losses of $80,000. At location B the probability of succeding is 1/2, but the potential profit and loss are $240,000 and $48,000, respectively. Calculate the expected profit at location A. Your final answer must be a number. Please round it to two decimal places.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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A fast-food company plans to install a new ice-cream dispensing unit in one of two store locations. The company figures that the probability of a unit being successful in location A is 3/4, and the annual profit in this case is $150,000. If it is not successful there will be losses of $80,000. At location B the probability of succeding is 1/2, but the potential profit and loss are $240,000 and $48,000, respectively. Calculate the expected profit at location A. Your final answer must be a number. Please round it to two decimal places.
Transcribed Image Text:A fast-food company plans to install a new ice-cream dispensing unit in one of two store locations. The company figures that the probability of a unit being successful in location A is 3/4, and the annual profit in this case is $150,000. If it is not successful there will be losses of $80,000. At location B the probability of succeding is 1/2, but the potential profit and loss are $240,000 and $48,000, respectively. Calculate the expected profit at location A. Your final answer must be a number. Please round it to two decimal places.
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