Problem 9, Section 9.1. For the following two problems from Section 9.1, complete a tree diagram and
Question:
Problem 9, Section 9.1.
For the following two problems from Section 9.1, complete a tree diagram and solve each problem.
Data from problem 9
Consider a construction firm that is deciding to specialize in building high schools or elementary schools or a combination of both over the long haul. The construction company must submit a bid proposal, which costs money to prepare, and there are no guarantees that it will be awarded the contract. If the company bids on the high school, it has a 35% chance of getting the contract, and it expects to make $162,000 net profit.
However, if the company does not get the contract, it loses $11,500. If the company bids on the elementary school, there is a 25% chance of getting the contract, and it would net $140,000 in profit. However, if the company does not get the contract, it will lose $5750. What should the construction company do?
Step by Step Answer:
A First Course In Mathematical Modeling
ISBN: 9781285050904
5th Edition
Authors: Frank R. Giordano, William P. Fox, Steven B. Horton