A venture capitalist, willing to invest $1,000,000, has three investments to choose from. The first investment, a software company, has a 14% chance of returning $5,000,000 profit, a 33% chance of returning $1,500,000 profit, and a 53% chance of losing the million dollars. The second company, a hardware company, has a 12% chance of returning $4,000,000 profit, a 23% chance of returning $3,500,000 profit, and a 65% chance of losing the million dollars. The third company, a biotech firm, has a 7% chance of returning $8,000,000 profit, a 26% of no profit or loss, and a 67% chance of losing the million dollars. Order the expected values from smallest to largest. third, first, second second, first, third first, second, third third, second, first second, third, first first, third, second
A venture capitalist, willing to invest $1,000,000, has three investments to choose from. The first investment, a software company, has a 14% chance of returning $5,000,000 profit, a 33% chance of returning $1,500,000 profit, and a 53% chance of losing the million dollars. The second company, a hardware company, has a 12% chance of returning $4,000,000 profit, a 23% chance of returning $3,500,000 profit, and a 65% chance of losing the million dollars. The third company, a biotech firm, has a 7% chance of returning $8,000,000 profit, a 26% of no profit or loss, and a 67% chance of losing the million dollars. Order the expected values from smallest to largest. third, first, second second, first, third first, second, third third, second, first second, third, first first, third, second
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
A venture capitalist, willing to invest $1,000,000, has three investments to choose from. The first investment, a software company, has a 14% chance of returning $5,000,000 profit, a 33% chance of returning $1,500,000 profit, and a 53% chance of losing the million dollars. The second company, a hardware company, has a 12% chance of returning $4,000,000 profit, a 23% chance of returning $3,500,000 profit, and a 65% chance of losing the million dollars. The third company, a biotech firm, has a 7% chance of returning $8,000,000 profit, a 26% of no profit or loss, and a 67% chance of losing the million dollars.
Order the
- third, first, second
- second, first, third
- first, second, third
- third, second, first
- second, third, first
- first, third, second
Expert Solution
Step 1
Step by step
Solved in 2 steps with 2 images
Recommended textbooks for you
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman