I need all the steps please! Thank you! Statistics homework. ?
A ski resort loses $70,000 per season when it does not snow very much and makes $250,000 profit when it does
snow a lot. The probability of it snowing at least 75 inches (i.e., a good season) is 40%.
Find the expectation for
- llafferLv 73 weeks agoFavourite answer
Take the profit of each possible outcome and multiply it by the probability. If the probability results in a loss then the outcome is a negative number.
There is a 40% chance of a $250,000 profit and and a 60% chance of a $70,000 loss, so:
0.4(250000) + 0.6(-70000)
100000 - 42000
$58,000 profit is the expected profit.