Phil Dunphy, a real estate agent, is considering whether he should list an unusual $340,864 house for sale. If he lists it, he will need to spend $3,060 in advertising, staging, and fresh cookies. The current owner has given Phil 6 months to sell the house. If he sells it, he will receive a commission of $20,023. If he is unable to sell the house, he will lose the listing and his expenses. Phil estimates the probability of selling this house in 6 months to be 71%. What is the expected profit on this listing?
Phil Dunphy, a real estate agent, is considering whether he should list an unusual $340,864 house for sale. If he lists it, he will need to spend $3,060 in advertising, staging, and fresh cookies. The current owner has given Phil 6 months to sell the house. If he sells it, he will receive a commission of $20,023. If he is unable to sell the house, he will lose the listing and his expenses. Phil estimates the probability of selling this house in 6 months to be 71%. What is the expected profit on this listing?
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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Phil Dunphy, a real estate agent, is considering whether he should list an unusual $340,864 house for sale. If he lists it, he will need to spend $3,060 in advertising, staging, and fresh cookies. The current owner has given Phil 6 months to sell the house. If he sells it, he will receive a commission of $20,023. If he is unable to sell the house, he will lose the listing and his expenses. Phil estimates the
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