A venture capitalist is considering investor money in a business that she saw on the show "Shark Tank." She has a 20% chance of profiting $3,000; a 60% chance of losing $2,000, and a 20% of breaking even. What is the expected value of this investment? Just type in the whole number number answer, without $ or any decimals.
A venture capitalist is considering investor money in a business that she saw on the show "Shark Tank." She has a 20% chance of profiting $3,000; a 60% chance of losing $2,000, and a 20% of breaking even. What is the expected value of this investment? Just type in the whole number number answer, without $ or any decimals.
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter10: Sequences, Series, And Probability
Section10.8: Probability
Problem 68E
Related questions
Concept explainers
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
Topic Video
Question
Transcribed Image Text:A venture capitalist is considering investor money in a business that she saw on the show "Shark
Tank." She has a 20% chance of profiting $3,000; a 60% chance of losing $2,000, and a 20% of
breaking even. What is the expected value of this investment? Just type in the whole number
number answer, without $ or any decimals.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage