A small software company will bid on a major contract. It anticipates a profit of $200,000 if it gets it, but thinks there is only a 30% chance of that happening. a) What's the expected profit? b) Find the standard deviation for the profit.

A small software company will bid on a major contract. It anticipates a profit of $200,000 if it gets it, but thinks there is only a 30% chance of that happening. a) What's the expected profit? b) Find the standard deviation for the profit.

A First Course in Probability (10th Edition)

10th Edition

ISBN:9780134753119

Author:Sheldon Ross

Publisher:Sheldon Ross

Chapter1: Combinatorial Analysis

Section: Chapter Questions

Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...

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Question

A small software company will bid on a major contract. It anticipates a profit of

$200,000

if it gets it, but thinks there is only a

30%

chance of that happening.

a) What's the expected profit?

b) Find the standard deviation for the profit.

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Step 2: Calculation of expected value

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Step 3: Calculation of standard deviation

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