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A construction company is considering submitting bids for two contracts. It will cost the company $10,000 to prepare and submit the bids, and if won,
A construction company is considering submitting bids for two contracts. It will cost the company $10,000 to prepare and submit the bids, and if won, each bid would produce $50, 000 income for the company. The company estimates that it has a 10% chance of winning any given bid. Here is the probability distribution of X = the amount of money the company profits from the bids. 1 2 3 4 A X OSUM(C2:E3)/6 Probability P(X) B O-10000*0.7 + 40000*0.18 + 90000*0.12 O AVERAGE(C3:E3) =STDEV.P(C2:E3) Which of the following calculates the expected value of the profit X? C =PRODUCTSUM(C2:E2, C3:E3) -$10,000.00 0.7 D $40,000 0.18 E $90,000 0.12 F
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