A construction company is considering bidding for a government contract that has a 70% chance of being awarded to them, but there is also a 30% chance that they will lose the bid. If the company wins the bid, they will make a profit of $1,000,000, but if they lose, they will lose $500,000 in expenses related to the bidding process. To reduce their risk, the company is considering hiring a consultant to help them prepare their bid. The consultant has a track record of increasing the company's chances of winning the contract to 85%. However, hiring the consultant will cost the company $200,000.

Calculate the expected value, standard deviation, and coefficient of variation of the company's profit if they decide to hire the consultant. Also, determine the probability that the company will make a profit of at least $500,000 if they hire the consultant.

Show all the calculations and express your final answers in dollars and percentages.

Answer rating: 100% (QA)

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