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OpenStudy (anonymous):
An architect is considering bidding for the design of a new shopping mall. The cost of drawing plans and submitting a model is $10,000. The probability of being awarded the bid is 0.11, and anticipated profits are $100,000, resulting in a possible gain of this amount minus the $10,000 cost for plans and a model. What is the expected value in this situation? A $10,000 B $9,900 C $1,000 D $11,000
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OpenStudy (mindblast3r):
.11 means 11%?
OpenStudy (anonymous):
YES, @Mindblast3r
OpenStudy (mindblast3r):
90000 x .11 = $9,900. Give medal now please :)
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