5. A contractor is considering a sale that promises a profit of 26,000 with a pr

Question

5. A contractor is considering a sale that promises a profit of 26,000 with a probability of 0.7 or a loss (due to bad weather strikes, and such) of $8000 with a probability of 0.3. What is the expected profit?

A. $15,800
B. $23,000
C. 18,000
D. 18,200

6. Determine e whether the given procedure results in a binomial distribution. If not, state the reason why.

Rolling a single die 53 times, keeping track of the "fives" rolled.

A)procedure results in a binomial distribution.
B) Not binomial: there are too many trials
C) Not binomial: the trials are not independent.
D) Not binomial: there are more than two outcomes for each trial.

Explanation / Answer

5)

Expected profit= profit* probability

= 26000*0.7

=18,200

Option D is correct .

6)

Here correct option is A)

Because its follows binomial distribution approximately

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