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A man buys a racehorse for ​$20 comma 00020,000 and enters it in two races. He plans to sell the horse​ afterward, hoping to make a profit. If the horse wins both​ races, its value will jump to ​$70 comma 00070,000. If it wins one of the​ races, it will be worth ​$45 comma 00045,000. If it loses both​ races, it will be worth only ​$10 comma 00010,000. The man believes there is a 3030​% chance that the horse will win the first race and a 3535​% chance that it will win the second one. Assuming that the two races are independent​ events, find the​ man's expected profit.

User Fejd
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Answer:

A man buys a racehorse for $20,000 and enters it in two races. He plans to sell the horse afterward, hoping to make a profit. If the horse wins both races, its value will jump to $100,000. If it wins one of the races, it will be worth $50,000.

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User Jonathon Ashworth
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