Chapter 11.3, Problem 44E

Completing a Project A mechanical contractor is preparing for a construction project. He determines that if he completes the project on schedule, has net profit will be $ 450.000. If he completes the project between 0 and 3 months late, his net profit decreases to $120.000. If he completes the project more than 3 months late, his net loss is $275,000. The probability that he completes the project on schedule is 0.6, the probability that he completes the project between 0 and 3 months late is 0.3. and the probability that he completes the project more than 3 months late is 0.1. Determine his expected gain or loss for this project.