Variance of the net profit


A company has submitted bids for two construction jobs. It has 40% chance of winning Job A, and resulting profit is $90,000. The chance of winning Job B is 70%, with profit of $100,000. The bidding outcomes for Job A and Job B are independent.

Preparatory work costs a total of $5000 for the two bids. Determine the variance of the net profit made by the company.

Request for Solution File

Ask an Expert for Answer!!
Basic Statistics: Variance of the net profit
Reference No:- TGS0858012

Expected delivery within 24 Hours