Question

A small software company bids on two contracts. It anticipates a profit of

​$45,000

if it gets the larger contract and a profit of

​$20,000

if it gets the smaller contract. The company estimates that there is a

33%

chance it will get the larger contract and a

64%

chance it will get the smaller contract. If the company does not get either​ contract, it will neither gain nor lose money. Assuming the contracts will be awarded​ independently, what's the expected​ profit?

​E(X)equals=

Answer 1