Business projection: An investor is considering an investment in a start-up company. She estimates that she has probability 0.39 of a $24,000 loss, probability 0.21 of a $6900 profit, probability 0.14 of a $38,000 profit, and probability 0.26 of breaking even (a profit of $0). What is the expected value of the profit? Would you advise the investor to make the investment? 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 0.39 of a $24,000 loss, probability 0.21 of a $6900 profit, probability 0.14 of a $38,000 profit, and probability 0.26 of breaking even (a profit of $0). What is the expected value of the profit? Would you advise the investor to make the investment? The expected value of the profit is $____
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter10: Sequences, Series, And Probability
Section: Chapter Questions
Problem 35T
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Business projection: An investor is considering an investment in a start-up company. She estimates that she has probability 0.39 of a $24,000 loss, probability 0.21 of a $6900 profit, probability 0.14 of a $38,000 profit, and probability 0.26 of breaking even (a profit of $0). What is the expected value of the profit? Would you advise the investor to make the investment?
The expected value of the profit is $____
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