Belt Auction

a construction company is planning to bid on a?

A construction companyvis planning to bid on a building contract. The bid cost the company $1500. The probability that the bid is accepted is 1 fifth. Ifbthe bid is accepted, the company will make $40,000 minus the cost of the bid. Find the expected valuebin this situation. Describe what this value means

Public Comments

1. The company will need to spend 5 x 1500 = 7500 for each job it gets, so each job profit will be 32500.