Mathematics, 02.06.2020 23:58 jonesromari
Peanuts, a rock and roll producer, has scheduled an outdoor Woodstock 2 concert where revenue will be donated to Goodwill. The profit of Woodstock 2 depends on the weather on that day, namely if the weather it is warm, cool, or frigid. If the weather is warm, Peanuts expects to make a $20,000 profit; if it is cool, Peanuts expects to make a $5,000 profit; if it is frigid, Peanuts expects to incur a $12,000 loss. Meteorologists estimate a probability distribution that based on the historical records for Woodstock NY, the chances of a warm day is 0.60, and the chances of a cool day is 0.25.
Required:
1. What is Woodstock 2's expected profit?
a) $ 5.000
b) $ 11,450
c) $ 13,000
d) $ 13,250
e) $ 15,050
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