DQuestion 2 0.5 pts A rock concert producer has scheduled an outdoor concert. If

Question

DQuestion 2 0.5 pts A rock concert producer has scheduled an outdoor concert. If it is warm that day, she expects to make a $20,000 profit. If it is cool that day, she expects to make a $5,000 profit. If it is very cold that day, she expects to suffer a $12,000 loss. Based upon historical records, the weather office has estimated the chances of a warm day to be 60%; the chances of a cool day to be 25%. what is the producer's expected profit? 1 $14,500 O $11,450 O $15,500 O This question cannot be answered because the probability information isn't complete

Explanation / Answer

According to question:

P[warm day]=60%=0.6

P[cold day]=25%=0.25

P[very cold day]=100-60-25=15%= 0.15

Expected profit=$20,000 X 0.6 + $5000 X 0.25 - $12000 X 0.15 = $11,450

So option B is correct option

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