Purchase Solution

calculate the expected net profit

Not what you're looking for?

Ask Custom Question

Information I have gathered from the problem. I have a new product that has a probability .5 of being a success and probability .5 of being unsuccessful. Sucessful products pass quality control 80% of the time. Unsuccessful products pass quality control 25% of the time.

If the product is successful the net profit for the company would be $40 million; if unsuccessful the net loss would be $15 million. How do I calculate the expected net profit if the product passes quality control?

Purchase this Solution

Solution Summary

This posting guides to calculate the expected net profit.

Solution Preview

We have the following assumptions.
A: A product is successful.
B: A product passes quality control.
~A means "Not A" and ~B means "Not B".
From the ...

Purchase this Solution


Free BrainMass Quizzes
Know Your Statistical Concepts

Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.

Measures of Central Tendency

Tests knowledge of the three main measures of central tendency, including some simple calculation questions.

Terms and Definitions for Statistics

This quiz covers basic terms and definitions of statistics.

Measures of Central Tendency

This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.