You've just decided to add a new line to your manufacturing plant. Compute the expected loss/profit from the line addition if you estimate the following: There's a 70% chance that profit will increase by $100,000.
There's a 20% chance that profit will remain the same.
There's a 10% chance that profit will decrease by $15,000.
a. Gain of $100,000
b. Gain of $71,500
c. Loss of $15,000
d. Gain of $68,500