Business projection: An investor is considering an investment in a start-up company. She estimates that she has probability 0.39 of a $23,200 loss, probability 0.28 of a $14,100 profit, probability 0.19 of a $48,000 profit, and probability 0.14 of breaking even (a profit of $0). What is the expected value of the profit? Would you advise the investor to make the investment? Part: 0/ 2 Part 1 of 2 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
Section10.8: Probability
Problem 68E
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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 $23,200 loss, probąbility 0.28 of a $14,100 profit, probability 0.19 of a $48,000 profit, and probability 0.14 of breaking
even (a profit of $0). What is the expected value of the profit? Would you advise the investor to make the Investment?
Part: 0/ 2
Part 1 of 2
The expected value of the profit is $
Transcribed Image Text:Business projection: An investor is considering an investment in a start-up company. She estimates that she has probability 0.39 of a $23,200 loss, probąbility 0.28 of a $14,100 profit, probability 0.19 of a $48,000 profit, and probability 0.14 of breaking even (a profit of $0). What is the expected value of the profit? Would you advise the investor to make the Investment? Part: 0/ 2 Part 1 of 2 The expected value of the profit is $
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