# Probability Word/Essay problem

#### aburchett

##### New member
The probability restoration company PuroServ is considering switching to new dehumidifiers. Their market research considering the cost of the new machines and their efficiency, tells them that the switch would give them a 67% chance of making a $20,000 profit, a 3% chance of breaking even, and a 30% chance of losing$5,000. How much money does PuroServ expect to make with their new purchase?

#### tkhunny

##### Moderator
Staff member
This is a very simple expectation problem. Please show your efforts. You simply cannot have NO idea.

#### aburchett

##### New member
67% chance of making $20,000 = 67/100 = .67 3% chance of breaking even = 3/100 = .03 30% chance of losing$5,000= 30/100 = .3

20,000(.67) + 0(.03) + 5,000(.3)=
13,400 + 0 + 1,500=
$14,900 Is this correct? #### tkhunny ##### Moderator Staff member Let's start from the top: "$20,000 = 67/100" -- Do you believe that?

"losing 5,000" leads to +5,000? The sign is wrong.

#### aburchett

##### New member
20,000(.67) + 0(.03) - 5,000(.3)=
13,400 + 0 - 1,500=

#### aburchett

##### New member
Thank you so much!! You have been a tremendous help!