Question: A construction company submits bids for two projects. Listed here are the profit and the probability of winning each project. Assume that the outcomes of

A construction company submits bids for two projects. Listed here are the profit and the probability of winning each project. Assume that the outcomes of the two bids are independent.

(a) List the possible outcomes (win/not win) for the two projects and find their probabilities.
(b) Let X denote the company's total profit out of the two contracts. Determine the probability distribution of X.
(c) If it costs the company $2000 for preparatory surveys and paperwork for the two bids, what is the expected net profit?

Chance of Winning Bid .50 65 Profit Project A Project B $175,000 $220,000

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