Question: A construction company is bidding on a contract The company

A construction company is bidding on a contract. The company believes that it has a 25% chance of winning the contract. If the company wins, it will earn a profit of $50,000. If the company does not win the contract, it will lose the $1,845 it spent preparing the bid. What is the company's expected value of this contract?

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  • CreatedJuly 12, 2015
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