## keebler01 Group Title The property restoration company PuroServ is considering switching to new dehumidifiers. Their market research, considering the cost of the new machines and their efficiency, tells them that the switch would give them a 75% chance of making a $20,000 profit, a 20% chance of breaking even, and a 5% chance of losing$5,000. How much money does PuroServ expect to make with their new purchase? please show work 2 years ago 2 years ago

1. coolaid Group Title

dont worry

2. coolaid Group Title

some ons coming

3. coolaid Group Title

:D

4. Ishaan94 Group Title

keebler I am sorry but I never did a question like this. I will try to get some help.

5. dumbcow Group Title

its expected value, kind of like a weighted average $EV = \sum_{}^{}x*p(x)$ where x is profit made and p(x) is the probability of making that profit

6. keebler01 Group Title

dumbcow i dont get it!!

7. dumbcow Group Title

so (20,000)(0.75) + (0)(0.2) + (-5000)(0.05)

8. dumbcow Group Title

multiply each probability by its corresponding profit

9. Hashir Group Title

:D

10. Hashir Group Title

it is easy

11. keebler01 Group Title

thank u dumbcow

12. dumbcow Group Title

no problem what do you get after adding them up

13. keebler01 Group Title

hold on!

14. keebler01 Group Title

it gave me a wired number!

15. dumbcow Group Title

hmm should be 14,750 .75*20,000 - .05*5000