What is expected number of contracts that company will win

Reference no: EM13133469

A company recently bid on three contracts. It has a probability of 0.4 of winning each specific contract. For each contract that it wins, it has a probability of 0.2 of making a profit of $50,000 on the contract, a probability of making a profit of $100,000 and a probability of 0.3 of making a profit of $200,000. What is the expected number of contracts that it will win? What is the expected profit for each contract? What is the company's expected total profit on these three bids?

Reference no: EM13133469

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