Math  /  Probability

Question Find the expected value of the architect's bid for a museum design project, where the cost of drawing plans and submitting a model is $16,000\$ 16,000, and the probability of being awarded the bid is 0.4. If the architect is awarded the bid, they will make $40,000\$ 40,000 minus the $16,000\$ 16,000 cost.

Studdy Solution
Simplify the result to get the final expected value.
EV=$0 EV = \$0
The expected value in this situation is $0\$0. Round to the nearest dollar, the expected value remains $0\$0.

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