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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 0.13, and the anticipated profits are $100,000. What is the expected value in this situation? is it 3000? I did 100,000-10,000=90,000 -10,000(0.87)+90,000(0.13)=3,000?
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