A construction company is planning to bid on a building contract. The bid costs the company $1400. The probability that the bid is accepted is 1/4. If the bid is accepted, the company will make $17,600 minus the cost of the bid. What is the expected value in this situation?

$3,000

Step-by-step explanation:

There two possible outcomes:

There is a 3/4 chance that the bid is rejected for a value of -$1,400

There is a 1/4 chance that the bid is accepted for a value of $17,600 - $1,400.

The expected value of the situation is:

The expected value is $3,000.

step-by-step explanation:

let's cover over the formula of the vertex:

y = a(x – h)^2 + k

in this formula, (h,k) are the vertex, always remember that the positive or negative value of the vertex is based on the sign it has.

for example, if the vertex is -3,-6 then both the x and y value would have the positive sign attached to it and if it were a positive x and y value, then a negative sign would be attached to it.

with that being said, for our problem the x value is a positive one so we are looking for a number with a negative sign next to it, in this case the first and second choice.

however, for the first answer choice it isn't quite part of the formula so we know that the answer choice correctly displays the x value.

to confirm, we can see if the -1 fits correctly with the second answer choice, and as mentioned above a negative number will have a positive sign attached to it. so, for our problem we can see that -1 has been changed to +1, so we can confirm that the second answer choice is correct.

hence, our final answer is y=(x - 1)^2 + 1