The proprietor of midland construction company has to decide between two projects. he estimates that the first project will yield a profit of $170,000 with a probability of 0.7 or a profit of $130,000 with a probability of 0.3; the second project will yield a profit of $230,000 with a probability of 0.7 or a profit of$80,000 with a probability of 0.3.

find the expected profit for each project.

first project = ?
second project = ?

Expected profit for first and second project are $158000 and $185000 respectively.

Step-by-step explanation:

Since we have given that

First project :

a profit of $170,000 with a probability of 0.7 or a profit of $130,000 with a probability of 0.3

0.7      $170000

0.3      $130000

So, Expected profit would be

Second project:

a profit of $230,000 with a probability of 0.7 or a profit of$80,000 with a probability of 0.3.

0.7      $230000

0.3      $80000

So, Expected profit would be

Hence, expected profit for first and second project are $158000 and $185000 respectively.

about 168 miles

step-by-step explanation: