Problem
A railroad between Fairbanks and the Brooks Range in Alaska will have a most likely construction cost $900,000 per kilometer. If there is more permafrost than estimated (probability of .3), then the cost will increase by 40%. If there is less permafrost than estimated (probability of .2), then the cost will decrease by 25%. What is the probability distribution and the expected value for the first cost per kilometer?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.