An investment counselor calls with a hot stock tip. He believes that if the economy remains strong, the investment will result in a profit of $60,000. If the economy grows at a moderate pace, the investment will result in a profit of $10.000. However, if the economy goes into recession, the investment will result in a loss of $60,000. You contact an economist who believes there is a 20% probability the economy will remain strong, a 60% probability the economy will grow at a moderate pace, and a 20% probability the economy will slip into recession. What is the expected profit from this investment? The expected profit is $1. (Type an integer or a decimal.)

SECTION 11.3: EXPECTED VALUE ONLINE VERSION 1. You play a game in which 30% of the time you will WIN $5 and 70% of the time you will LOSE $3. What is the expected value for this game? Please show your work.

If a 60 year-old buys a $1000 life insurance policy at a cost of $70 and has a probability of 0.921 of living to age 61, find the expectation of the policy until the person reaches 61. Round your answer to the nearest cent

There is an option of paying $100 to have research conducted to better predict which state of nature will occur. When the true state of nature is High, the research will accurately predict High 70% of the time. When the true state of nature is Low, the research will accurately predict Low 75% of the time. Given that the research is conducted, what is the joint probability that the state of nature is High and the research predicts Low?

A man buys a racehorse for $25,000 and enters it in two races. He plans to sell the horse​ afterward, hoping to make a profit. If the horse wins both​ races, its value will jump to $105,000. If it wins one of the​ races, it will be worth $65,000. If it loses both​ races, it will be worth only $10,000. The man believes there is a 30​% chance that the horse will win the first race and a 35​% chance that it will win the second one. Assuming that the two races are independent​ events, find the​ man's expected profit.

Milan

About two events A and B, we know that A occurs with 32% probability and B with 15% probability. It is also known that both intersect at the same time with a probability of 10%. Examine whether A and B are independent events.

Charlie buys a one-year term home insurance policy for $p, that will pay $200,000 in the event of a major catastrophe and $35,000 in the event of a minor catastrophe. Charlie's home has a 0.2% chance of a major catastrophe and a 0.7% of a minor catastrophe during the one year term.  What did the insurance company charge Charlie for this policy if the company expected to break even?

You are an analyst for a consumer products company. You run a survey of 1000 customers and find that 80% of customers use gel packs for laundry detergent (the rest use liquid or powder) and 40% of customers use gel packs for their dishwasher detergent (the rest use liquid or powder). You also learn that twice as many customers use laundry detergent than dishwasher detergent.

The weather in Columbus is either good, indifferent, or bad on any given day. If the weather is good today, there is a 40% chance it will be good tomorrow, a 30% chance it will be indifferent, and a 30% chance it will be bad. If the weather is indifferent today, there is a 50% chance it will be good tomorrow, and a 20% chance it will be indifferent. Finally, if the weather is bad today, there is a 10% chance it will be good tomorrow and a 30% chance it will be indifferent. a. What is the stochastic matrix, P, for this situation? b. Suppose there is a 10% chance of good weather today and a 90% chance of indifferent weather. What are the chances of bad weather tomorrow? c. Suppose the predicted weather for Monday is 40% indifferent weather and 60% bad weather. What are the chances for good weather on Wednesday? a. Create the stochastic matrix, P, where G is good, I is indifferent, and B is Bad. From: GIB a (Simplify your answers.) To: G