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A fast-food company plans to install a new ice-cream dispensing unit in one of two store locations. The company figures that the probability of a

A fast-food company plans to install a new ice-cream dispensing unit in one of two store locations. The company figures that the probability of a unit being successful in location A is 3/4, and the annual profit in this case is $150,000. If it is not successful there will be losses of $80,000. At location B the probability of succeeding is 1/2, but the potential profit and loss are $240,000 and $48,000, respectively.

Calculate the expected profit at location A.

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