# Expected Profits

Suppose that next year the U.S. will be in one of the following economic conditions: Boom, Moderate Growth, Recession, or Depression. The probability that each economic condition will occur, and that a jewelry store will earn profits within that broader economic condition are listed below:

Economic Condition Probability Jewelry Store Profits

Boom 0.40 $400,000

Moderate Growth 0.30 $300,000

Recession 0.20 $100,000

Depression 0.10 -$500,000

The expected profit of the jewelry store during the next year is

a) $250,000

b) $220,000

c) $190,000

d) $170,000

e) None of the above

https://brainmass.com/math/probability/expected-profits-501424

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Take the expected profits in each economic condition and ...

#### Solution Summary

The expert examines the expected profits for broader economic conditions.