Software A small software company bids on two contracts. It anticipates a profit of $60,000 if it gets the larger contract and a profit of $20,000 on the smaller contract. The company estimates theres a 30% chance it will get the larger contract and a 60% chance it will get the smaller contract. Assuming the contracts will be awarded independently, whats the expected profit?
Chapter 4 Probability Probability is a way to assign numerical measurement to chance, 3 ways to do this Theoretical “classical”- computed through mathematical definitions Empirical- frequency proportion of the time that events of the same type will occur in the long run Subjective- assigned estimate of chance considering data, experience and personal belief In classical all possible outcomes are equally likely Very bad, very unlikely only works for cards and dice Probability experiment- chance process that’ll lead to 1 out of 2 or more defined results Trial- a process of observation or measurement Outcome- result of a trial Sample space