# Question: Shawn and Maddie purchase a foreclosed property for 50 000 and

Shawn and Maddie purchase a foreclosed property for $50,000 and spend an additional $27,000 ﬁxing up the property. They feel that they can resell the property for $120,000 with probability 0.15, $100,000 with probability 0.45, $80,000 with probability 0.25, and $60,000 with probability 0.15.

Compute and interpret the expected proﬁt for reselling the property.

Compute and interpret the expected proﬁt for reselling the property.

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