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A construction company has been hired to build a custom home. The builder estimates the probabilities of potential profit (or loss) as shown in the
A construction company has been hired to build a custom home. The builder estimates the probabilities of potential profit (or loss) as shown in the table below. What is the profit expectation for the company? $ Profit/Loss Probability $100,000 0.20 $60,000 0.25 $30,000 0.25 0 0.20 $20,000 0.08 $40,000 0.02
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