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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I am not too sure about this but I believe the answer should be $11700? because the expected value of the bidding design of $3000 shouldn't be lower than it's cost and plans. I'm not too sure on this one.

@apoorvk can you verify? ;D

11,700 is an option too. A $11,700 B $12,000 C $13,000 D $3,000

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