Investment analysis bob the proprietor of midway lumber


Question: INVESTMENT ANALYSIS Bob, the proprietor of Midway Lumber, bases his projections for the annual revenues of the company on the performance of the housing market. He rates the performance of the market as very strong, strong, normal, weak, or very weak. For the next year, Bob estimates that the probabilities for these outcomes are .18, .27, .42, .10, and .03, respectively. He also thinks that the revenues corresponding to these outcomes are $20, $18.8, $16.2, $14, and $12 million, respectively. What is Bob's expected revenue for next year?

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Mathematics: Investment analysis bob the proprietor of midway lumber
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