You are a Junior Business Analyst at ModusBioSystems. Your boss Sarah Strong is Vice President, Business Development, and has asked you for your input on a difficult decision. Sarah is considering purchasing a booth at the next Canadian Biomedical Inventors Convention, but they are not cheap and are non-refundable. The conference is scheduled for 6 months from now but given the current Covid-19 pandemic there is no guarantee the convention will take place.

The event organizers have been clear, the $2000 booth purchase fee is non-refundable even if the convention is cancelled, so you have to help decide if it is worth the risk. After doing some research, you estimate about a 65% chance the event will take place. If the event takes place, you suspect an 80% chance that the new business Modus attracts could bring in $10, 000 and a 20% it only brings in $2,000.

calculate the expected value