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David, the promoter of an outdoorconcert, expects a net profit of$100,000, unless itrains, which would reduce the net profit to $35,000. The probability of rain

David, the promoter of an outdoorconcert, expects a net profit of$100,000, unless itrains, which would reduce the net profit to $35,000. The probability of rain is 0.20. For a premium of $29,000 David can purchase insurance coverage that would pay him$100,000 in case of rain. Find the expected net profit when the insurance is not purchased.

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