Respuesta :
Answer:
$70,750
Step-by-step explanation:
The expected gain/loss is found by adding the products of all of the profits/losses by their probability. So,
(0.8 * 100000) + (0.1 * 0) + (0.1 * -2500) =
80000 + 0 + -250 =
$70750
The expected gain or loss for this store is a gain of $79,750.
What is gain and loss ?
Gain is defined as the profit occurred by a store or a shopkeeper when an item is sold at a higher price than it was originally bought.
Loss is defined as the money lost by a store or a shopkeeper when an item is sold at a lower price than it was originally bought.
Both gain or loss is calculated by the formula -
Cost Price (CP) - Selling price (SP)
What is the expected gain or loss for this store ?
It is given that the company estimates that there is an 80% chance the store will have a profit of $100,000, a 10% chance of the store will break even, and a 10% chance of the store will lose $2,500.
Calculating the net gain or loss or the company -
= (80% * $100,000) + (10% * $0) - (10% * $2,500)
= (80/100 * $100,000) - (10/100 * $2,500)
= $80,000 - $250
= $79,750
Thus the net gain involved in the business by the company is $79,750 .
Therefore, the expected gain or loss for this store is a gain of $79,750.
To learn more about gain and loss, refer -
https://brainly.com/question/1370108
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