Phil Dunphy, a real estate agent, is considering whether he should list an unusual $618,889 house for sale. If he lists it, he will need to spend $5,984 in advertising, staging, and fresh cookies. The current owner has given Phil 6 months to sell the house. If he sells it, he will receive a commission of $21,137. If he is unable to sell the house, he will lose the listing and his expenses. Phil estimates the probability of selling this house in 6 months to be 65%. What is the expected profit on this listing?

Intermediate Algebra
19th Edition
ISBN:9780998625720
Author:Lynn Marecek
Publisher:Lynn Marecek
Chapter12: Sequences, Series And Binomial Theorem
Section12.3: Geometric Sequences And Series
Problem 12.57TI: What is the total effect on the economy of a government tax rebate of $1,000 to each household in...
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Phil Dunphy, a real estate agent, is considering whether he should list an unusual $618,889 house for sale.  If he lists it, he will need to spend $5,984 in advertising, staging, and fresh cookies.  The current owner has given Phil 6 months to sell the house.  If he sells it, he will receive a commission of $21,137.  If he is unable to sell the house, he will lose the listing and his expenses.  Phil estimates the probability of selling this house in 6 months to be 65%.  What is the expected profit on this listing?

 
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