A First Course in Probability (10th Edition)
10th Edition
ISBN: 9780134753119
Author: Sheldon Ross
Publisher: PEARSON
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Transcribed Image Text:Problem #5 - Real Estate
Shawn and Maddie purchase a foreclosed property for $50,000 and spend an additional $27,000 fixing up the
property. They feel that they can resell the property for $120,000 with probability of 0.15, $100,000 with a
probability of 0.45, $80,000 with a probability of 0.25 and $60,000 with a probability of 0.15. Compute the
expected profit for reselling the property.
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