nguyendavis17
nguyendavis17
30.06.2021 • 
Mathematics

In a product liability​ case, a company can settle out of court for a loss of​ $350,000, or go to​ trial, losing ​$400,000 if found guilty and nothing if found not guilty. Lawyers for the company estimate the probability of a​ not-guilty verdict to be 0.8. Complete parts​ (a) through​ (b) below. What is the expected value of the amount the company can lose by taking the case to​ court?

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