• 0

A PHP Error was encountered

Severity: Notice

Message: Undefined index: userid

Filename: views/question.php

Line Number: 192


File: /home/noqkocv1izd6/public_html/application/views/question.php
Line: 192
Function: _error_handler

File: /home/noqkocv1izd6/public_html/application/controllers/Questions.php
Line: 416
Function: view

File: /home/noqkocv1izd6/public_html/index.php
Line: 315
Function: require_once

A small software company will bid on a major contract. It anticipates a profit of ​$15,000 if it gets​ it, but thinks there is only a 10​% chance of that happening.
​a) What's the expected​ profit?
​b) Find the standard deviation for the profit.

As usual Expected values are obtained by multiplying x by the probability value. 

Expected value  = $15,000 * 0.10 = 1500

Standard deviation =square root (15000^2 * 0.10 - 1500^2)  =  $4500


  • 0
Reply Report