A lawyer considers taking a case figures that there is a 40% chance of winning the case in court and earning his firm $400,000, a 50% chance of losing the case in court and costing his firm $150,000, and a 10% chance of settling out of court and bringing in $200,000. What is the expected payoff of the case for the firm?

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 lawyer considers taking a case figures that there is a 40% chance of winning the case in court and earning his firm $400,000, a 50% chance of losing the case in court and costing his firm $150,000, and a 10% chance of settling out of court and bringing in $200,000. What is the expected payoff of the case for the firm?

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