Phil Dunphy, a real estate agent, is considering whether he should list an unusual $618,889 house for sale. If he lists it, he will need to spend $5,984 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 $21,137. 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 65%. What is the expected profit on this listing?

Phil Dunphy, a real estate agent, is considering whether he should list an unusual $618,889 house for sale. If he lists it, he will need to spend $5,984 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 $21,137. 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 65%. 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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