Expected Profit for the Acceptance of Estimate of an Engineering Company Date of Exam November 2016 Subject Mathematics, Surveying and Transportation Engineering Problem An engineering company prepares an estimate for a job. The cost of preparing the estimate is Php10,000. The amount of profit over and above the Php10,000 is Php25,000 if their estimate is accepted. The probability that their estimate will be accepted 0.7 and the probability that their estimate will not be accepted is 0.3. What is the expected profit? A. Php12,500 C. Php14,500 B. Php13,500 D. Php10,500 Answer Key Click here to show or hide the Answer Key [ C ] Solution Click here to expand or collapse this section $\text{Expected profit} = 0.7(25,000) - 0.3(10,000)$ $\text{Expected profit} = \text{Php}14,500$ ← answer Category College Algebra Probability Expected Value Acceptance of Estimate Expected Profit Log in or register to post comments
