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The probability of an organisation making a profit of $180,000 next month is half the probability of it making a profit of $75,000.
What is the expected profit for next month?
Please help me with a step by step solution to this question.
Why are you attempting questions for which you do not have an answer? You should be using a Revision Kit published by one of the ACCA approved publishers – they have answers and workings to the questions!!
If the probability of one outcome is half that of the other, then out of every 3 occasions then 1 will be one outcome and 2 will be the other.
So the probabilities are 1/3 and 2/3So the expected profit is (1/3 x 180,000) + (2/3 x 75,000)
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