Producer expected profit


A rock concert producer has scheduled an outdoor concert. If it is warm that day, she expects to make a $20,000 profit. If it is cool that day, she expects to make a $5000 profit. It if is very cold that day, she expects to suffer a $12,000 loss. Based upon historical records, the weather office has estimated the chances of a warm day to be 0.60; the chances of a cool day to be 0.25. What is the producer's expected profit?

(a) $5000

(b) $13,000

(c) $15,050

(d) $13,250

(e) $11,450

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Basic Statistics: Producer expected profit
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