A construction company submits bids for two projects. Listed here are the profit and the probability of

Question:

A construction company submits bids for two projects. Listed here are the profit and the probability of winning each project. Assume that the outcomes of the two bids are independent.

(a) List the possible outcomes (win/not win) for the two projects and find their probabilities.
(b) Let X denote the company's total profit out of the two contracts. Determine the probability distribution of X.
(c) If it costs the company $2000 for preparatory surveys and paperwork for the two bids, what is the expected net profit?

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...