Homework Help is Here – Start Your Trial Now!
Math
Statistics
You are involved in a risky business venture where three outcomes are possible: (1) you will lose not only your initial investment ($5000) but an additional $3000; (2) you will just make back your initial investment (for a net gain of $0); or (3) you will make back your initial investment plus an extra $10,000. The probability of (1) is half as large as the probability of (2), and the probability of (3) is one- third as large as the probability of (2). Find the expected value and standard deviation of your net gain (or loss) from this venture

You are involved in a risky business venture where three outcomes are possible: (1) you will lose not only your initial investment ($5000) but an additional $3000; (2) you will just make back your initial investment (for a net gain of $0); or (3) you will make back your initial investment plus an extra $10,000. The probability of (1) is half as large as the probability of (2), and the probability of (3) is one- third as large as the probability of (2). Find the expected value and standard deviation of your net gain (or loss) from this venture

Holt Mcdougal Larson Pre-algebra: Student Edition 2012
Holt Mcdougal Larson Pre-algebra: Student Edition 2012
1st Edition
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
Chapter11: Data Analysis And Probability
Section11.8: Probabilities Of Disjoint And Overlapping Events
Problem 2C
See similar textbooks
icon
Related questions
Question
You are involved in a risky business venture where three outcomes are possible: (1) you will lose not only your initial investment ($5000) but an additional $3000; (2) you will just make back your initial investment (for a net gain of $0); or (3) you will make back your initial investment plus an extra $10,000. The probability of (1) is half as large as the probability of (2), and the probability of (3) is one- third as large as the probability of (2). Find the expected value and standard deviation of your net gain (or loss) from this venture
Transcribed Image Text:You are involved in a risky business venture where three outcomes are possible: (1) you will lose not only your initial investment ($5000) but an additional $3000; (2) you will just make back your initial investment (for a net gain of $0); or (3) you will make back your initial investment plus an extra $10,000. The probability of (1) is half as large as the probability of (2), and the probability of (3) is one- third as large as the probability of (2). Find the expected value and standard deviation of your net gain (or loss) from this venture
Expert Solution
steps

Step by step

Solved in 3 steps with 30 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
Holt Mcdougal Larson Pre-algebra: Student Edition…
Holt Mcdougal Larson Pre-algebra: Student Edition…
Algebra
ISBN:
9780547587776
Author:
HOLT MCDOUGAL
Publisher:
HOLT MCDOUGAL
Calculus For The Life Sciences
Calculus For The Life Sciences
Calculus
ISBN:
9780321964038
Author:
GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:
Pearson Addison Wesley,
SEE MORE TEXTBOOKS