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A light bulb manufacturer introduces a new product. The firm believes that there is a(n) 0.87 percent of the bulbs functioning as advertised. The firm's engineering department tests a random sample of bulbs. In the past, testing returned a positive result 0.89 percent of the time when bulbs actually functioned properly (as advertised). Further, if the bulbs failed to work as advertised, testing returned a negative result 0.94 percent of the time.
If the bulb works as advertised, the firm will earn $3.4 in profit. If the fail to work as advertised, the firm will lose $1. Calculate the expected value of the bulb given a positive test result. Round your answer to two decimal places.
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