First Cost of a Construction Project Depends on Weather

First cost of a construction project depends on weather. Historical weather data shows that in the fall weather is warm 20% of the time, it is cold 30% of the time and it is somewhat in between 50% of the time. During warm weather, first cost is expected to be $225 000, during cold weather $295 000 and $250 000 in between. What is the expected value of the first cost?

A) $225 000
B) $250 000
C) $252 000
D) $258 500
E) $295 000

Correct Answer:

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