Lobster Liquidators will make
$ 510 comma 000$510,000
if the fishing season weather is good,
$ 220 comma 000$220,000
if the weather is fair, and would actually lose
$ 50 comma 000$50,000
if the weather is poor during the season. If the weather service gives a
4040%
probability of good weather, a
2020%
probability of fair weather, and a
4040%
probability of poor weather, what is the expected monetary value for Lobster Liquidators?
| expected monetary value is $228,000 | |||
| Please give thumbs up if you are satisfied | |||
| Statement showing Computations | |||
| Particulars | Amount | Probability | expected monetary value |
| Good Weather | 510,000.00 | 40% | 204,000.00 |
| Fair Weather | 220,000.00 | 20% | 44,000.00 |
| Poor Weather | (50,000.00) | 40% | (20,000.00) |
| expected monetary value | 228,000.00 | ||
Lobster Liquidators will make $ 510 comma 000$510,000 if the fishing season weather is good, $...
Lobster Liquidators will make $ 510 comma 000 if the fishing season weather is good, $ 220 comma 000 if the weather is fair, and would actually lose $ 50 comma 000 if the weather is poor during the season. If the weather service gives a 40% probability of good weather, a 20% probability of fair weather, and a 40% probability of poor weather, what is the expected monetary value for Lobster Liquidators?