A contractor spends Rs 2,000 to prepare for a bid for a construction project which, after
deducting manufacturing expenses and the cost of bidding, will yield a profit of Rs.
25,000 if the bid is won. If the chance of winning the bid is 10%, state the likely decision
on whether to bid or not to bid.

Question

A contractor spends Rs 2,000 to prepare for a bid for a construction project which, after
deducting manufacturing expenses and the cost of bidding, will yield a profit of Rs.
25,000 if the bid is won. If the chance of winning the bid is 10%, state the likely decision
on whether to bid or not to bid.

ikram002p · Answer

if the contractor loss the bid he will lose Rs 2,000 
but if he won he will gane 25 000
Profit is greater than the loss in spite of the possibility of loss I think that the question does not carry enough data to solve mathematically
So my answer is the contractor have  to make a decision by himself.