Example 8: The proprietor of Midland Construction Company has to decide between two projects. He estimates that the rst project will yield a prot of...

Sec. Example 8: The proprietor of Midland Construction Company has to decide between two projects. He estimates that the rst project will yield a prot of $180,000 with a probability of .7 or a prot of $150,000 with a probability of .3; the second project will yield a prot of $220,000 with a probability of .6 or a prot of $80,000 with a probability of .4. Which project should the proprietor choose if he wants to maximize his expected prot? Example 9: Suppose the probability that it will rain tomorrow is .3. (a) What are the odds that it will rain tomorrow? (b) What are the odds that it will not rain tomorrow?