You’ve just decided to add a new line to your manufacturing plant. Compute the expected loss/profit from the line addition if you estimate the following:

• There’s a 50% chance that profit will increase by $100,000.
• There’s a 30% chance that profit will remain the same.
• There’s a 20% chance that profit will decrease by $15,000.

a. Gain of $100,000

b. Gain of $70,000

c. Loss of $53,000

d. Gain of $47,000