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Business projection: An investor is considering an investment in a start-up company. She estimates that she has probability 0.38 of a $23,000 loss, probability 0.22 of a $5000 profit, probability 0.11 of a $53,000 profit, and probability 0.29 of breaking even (a profit of $0). What is the expected value of the profit? Would you advise the investor to make the investment? Part: 0 / 2 Part 1 of 2 The expected value of the profit is $

Business projection: An investor is considering an investment in a start-up company. She estimates that she has probability 0.38 of a $23,000 loss, probability 0.22 of a $5000 profit, probability 0.11 of a $53,000 profit, and probability 0.29 of breaking even (a profit of $0). What is the expected value of the profit? Would you advise the investor to make the investment? Part: 0 / 2 Part 1 of 2 The expected value of the profit is $

Calculus For The Life Sciences
Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter12: Probability
Section12.2: Introduction To Probability
Problem 62E
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Business projection: An investor is considering an investment in a start-up company. She estimates that she has probability 0.38 of a $23,000 loss, probability 0.22 of a $5000 profit, probability 0.11 of a $53,000 profit, and probability 0.29 of breaking even (a profit of $0). What is the expected value of the profit? Would you advise the investor to make the investment? Part: 0 / 2 Part 1 of 2 The expected value of the profit is $
Transcribed Image Text:Business projection: An investor is considering an investment in a start-up company. She estimates that she has probability 0.38 of a $23,000 loss, probability 0.22 of a $5000 profit, probability 0.11 of a $53,000 profit, and probability 0.29 of breaking even (a profit of $0). What is the expected value of the profit? Would you advise the investor to make the investment? Part: 0 / 2 Part 1 of 2 The expected value of the profit is $
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