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Outdoor Regatta A producer plans an outdoor regatta for
Chapter 5, Problem 12RE(choose chapter or problem)
Problem 12RE
Outdoor Regatta A producer plans an outdoor regatta for May 3. The cost of the regatta is $8000. This includes advertising, security, printing tickets, entertainment etc. The producer plans to make $15,000 profit if all goes well. However, if it rains, the regatta will have to be canceled. According to the weather report the probability of rain is 0.3. Find the producer’s expected profit. (5−2)
Questions & Answers
QUESTION:
Problem 12RE
Outdoor Regatta A producer plans an outdoor regatta for May 3. The cost of the regatta is $8000. This includes advertising, security, printing tickets, entertainment etc. The producer plans to make $15,000 profit if all goes well. However, if it rains, the regatta will have to be canceled. According to the weather report the probability of rain is 0.3. Find the producer’s expected profit. (5−2)
ANSWER:
Problem 12RE
Outdoor Regatta A producer plans an outdoor regatta for May 3. The cost of the regatta is $8000. This includes advertising, security, printing tickets, entertainment etc. The producer plans to make $15,000 profit if all goes well. However, if it rains, the regatta will have to be canceled. According to the weather report the probability of rain is 0.3. Find the producer’s expected profit. (5?2)
Step by Step Solution
Step 1 of 2
Given,
The cost of the regatta = $8000
The expected profit = $15000
The probability of rain = 0.3
Then, probability of no rain = 1 - 0.3 = 0.7
X |
$15000 |
-$8000 |
P(X) |
0.7 |
0.3 |