1. You’ve just decided to add a new line to your manufacturing plant. Compute the expected loss/profit from the line addition if you estimate the following:

 There’s a 70% chance that profit will increase by $100,000.

 There’s a 20% chance that profit will remain the same.
 There’s a 10% chance that profit will decrease by $15,000.

a. Gain of $100,000

b. Gain of $71,500

c. Loss of $15,000

d. Gain of $68,500