Question

The EZ Construction Company is offered a ​$20,000contract to build a new deck for a house. The​ company's profit if they do not have to sink piers​ (vertical supports) down to bedrock will be ​$5,000. ​However, if they do have to sink the​ piers, they will lose ​$800. The probability they will have to put in the piers is 10​%.What is the expected value of this​ contract? The expected value​ (EV) of this contract is $

Answer 1

Answer:

20000-5000=15000-800=14200