Question

saltys surf shop loses $35,000 during cold, rainy summers and profits $175,000 during summers that are hot and dry. the probability that it will be hot and dry during summers is 30%. what is the expected profit salty would realize over 10 years? $1,400,000 $770,000 $280,000 $1,120,000

Explanation:

Step1: Calculate probability of cold - rainy summer

The probability of a hot and dry summer is $P(H) = 0.3$. The probability of a cold and rainy summer $P(C)=1 - P(H)=1 - 0.3 = 0.7$.

Step2: Calculate expected profit per year

The profit[LLM SSE On Failure]

Answer:

$770,000$