Question

The property restoration company PuroServ is considering switching to new dehumidifiers. Their market research, considering the cost of the new machines and their efficiency, tells them that the switch would give them a 75% chance of making a $20,000 profit, a 20% chance of breaking even, and a 5% chance of losing $5,000. How much money does PuroServ expect to make with their new purchase?
please show work

Answer 1

dont worry

Answer 2

some ons coming

Answer 3

:D

Answer 4

keebler I am sorry but I never did a question like this.
I will try to get some help.

Answer 5

its expected value, kind of like a weighted average
\[EV = \sum_{}^{}x*p(x)\]
where x is profit made and p(x) is the probability of making that profit

Answer 6

dumbcow i dont get it!!

Answer 7

so
(20,000)(0.75) + (0)(0.2) + (-5000)(0.05)

Answer 8

multiply each probability by its corresponding profit

Answer 9

:D

Answer 10

it is easy

Answer 11

thank u dumbcow

Answer 12

no problem
what do you get after adding them up

Answer 13

hold on!

Answer 14

it gave me a wired number!

Answer 15

hmm
should be 14,750
.75*20,000 - .05*5000