Rock concert promoter has scheduled an outdoor

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Supplementary Exercise 5.48 A rock concert promoter has scheduled an outdoor concert on July 4th. If it does not rain, the promoter will make $30,000. If it does rain, the promoter will lose $15,000 in guarantees made to the band and other expenses. The probability of rain on the 4th is .4.

(a) What is the promoter's expected profit? Is the expected profit a reasonable decision criterion? (Round your answers to 1 decimal place. Omit the "$" sign in your response.)

Reference no: EM131077991

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