A construction company is planning to build a new apartment complex. The company estimated that the construction
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A construction company is planning to build a new apartment complex. The company estimated that the construction cost of the project is $10 million with a standard deviation of $1 million. In addition, the company estimated that the demand for apartments in the area will be high, with a profit of $2 million expected. However, there is a 20% chance that the demand will be lower than expected, which will result in a profit of only $500,000. What is the probability that the company will make a profit of at least $1.5 million?
Related Book For
Business Statistics
ISBN: 9780321925831
3rd Edition
Authors: Norean Sharpe, Richard Veaux, Paul Velleman
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