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A contractor is considering a sale that promises a profit of $20,000 with a probability of 0.7 or a loss (due to bad weather, strikes,

A contractor is considering a sale that promises a profit of $20,000 with a probability of 0.7

or a loss (due to bad weather, strikes, and such) of $11,000 with a probability of 0.3.

What is the expected profit?

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