The proprietor of Midland Construction Company has to decide between two projects. He estimates that the first project will yield a profit of $170,000 with a probability of 0.7 or a profit of $130,000 with a probability of 0.3; the second project will yield a profit of $230,000 with a probability of 0.7 or a profit of$80,000 with a probability of 0.3.Find the expected profit for each project.first project = ?second project = ?

Answer: Expected profit for first and second project are $158000 and $185000 respectively.Step-by-step explanation:Since we have given that First project :a profit of $170,000 with a probability of 0.7 or a profit of $130,000 with a probability of 0.30.7      $1700000.3      $130000So, Expected profit would be [tex]E[x]=\sum xp(x)=0.7\times 170000+0.3\times 130000=\$158000[/tex]Second project: a profit of $230,000 with a probability of 0.7 or a profit of$80,000 with a probability of 0.3. 0.7      $2300000.3      $80000So, Expected profit would be [tex]E[x]=\sum xp(x)=0.7\times 230000+0.3\times 80000=\$185000[/tex]Hence, expected profit for first and second project are $158000 and $185000 respectively.