A local barbershop is discussing the option to move locations. After researching the market, they predict a 40% chance of earning $6,500, a 13% chance of breaking even, and a 47% chance of losing $5,900. What is the expected value of moving locations?

A local barbershop is discussing the option to move locations. After researching the market, they predict a 40% chance of earning $6,500, a 13% chance of breaking even, and a 47% chance of losing $5,900. What is the expected value of moving locations?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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