A construction company is planning to bid on a building contract. The bid costs the company $1100. The probability that the bid is accepted is 0.1. If the bid is accepted, the company will make $91,000 minus the cost of the bid.

What is the expected value in this situation? Round to the nearest dollar.

Question

A construction company is planning to bid on a building contract. The bid costs the company $1100. The probability that the bid is accepted is 0.1. If the bid is accepted, the company will make $91,000 minus the cost of the bid.

What is the expected value in this situation? Round to the nearest dollar.

saifoo.khan · Answer

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