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keebler01

  • 3 years ago

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

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  1. coolaid
    • 3 years ago
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    dont worry

  2. coolaid
    • 3 years ago
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    some ons coming

  3. coolaid
    • 3 years ago
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    :D

  4. Ishaan94
    • 3 years ago
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    keebler I am sorry but I never did a question like this. I will try to get some help.

  5. dumbcow
    • 3 years ago
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    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
    • 3 years ago
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    dumbcow i dont get it!!

  7. dumbcow
    • 3 years ago
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    so (20,000)(0.75) + (0)(0.2) + (-5000)(0.05)

  8. dumbcow
    • 3 years ago
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    multiply each probability by its corresponding profit

  9. Hashir
    • 3 years ago
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    :D

  10. Hashir
    • 3 years ago
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    it is easy

  11. keebler01
    • 3 years ago
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    thank u dumbcow

  12. dumbcow
    • 3 years ago
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    no problem what do you get after adding them up

  13. keebler01
    • 3 years ago
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    hold on!

  14. keebler01
    • 3 years ago
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    it gave me a wired number!

  15. dumbcow
    • 3 years ago
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    hmm should be 14,750 .75*20,000 - .05*5000

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