Anonymous asked in Science & MathematicsMathematics · 3 weeks ago

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

the profit. 

1 Answer

  • 3 weeks ago
    Favourite 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.

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