You've just decided to add a new line to your manufacturing plant. Compute the expected profit from the line addition if you estimate the following:

There is a 50% chance that profits will increase by $100,000.

There is a 30% chance that profits will increase by $15,000.

There is a 20% chance that profits will remain the same.

There is a 10% chance that profits will decrease by $15,000.

1)Gain of $53,000.

2)Gain of $56,000.

3)Gain of $100,000.

4)None of the other answers are correct.

5)Loss of $15,000.