In the table below x denotes the X-Tract Company’s projected annual profit (in $1,000). The table also shows the probability of earning that profit. The negative value indicates a loss. x f(x) x = profit -100 0.01 f(x) = probability -200 0.04 0 100 0.26 200 0.54 300 0.05 400 0.02 7 What is the probability that X-Trac will be profitable? That is, f(x > 0) = _________. a 0.87 b 0.83 c 0.79 d 0.75
In the table below x denotes the X-Tract Company’s projected annual profit (in $1,000). The table also shows the probability of earning that profit. The negative value indicates a loss. x f(x) x = profit -100 0.01 f(x) = probability -200 0.04 0 100 0.26 200 0.54 300 0.05 400 0.02 7 What is the probability that X-Trac will be profitable? That is, f(x > 0) = _________. a 0.87 b 0.83 c 0.79 d 0.75
Chapter12: Corporate Valuation And Financial Planning
Section: Chapter Questions
Problem 2STP
Related questions
Question
In the table below x denotes the X-Tract Company’s projected annual profit (in $1,000). The table also shows the probability of earning that profit. The negative value indicates a loss. |
x | f(x) | x = profit | ||
-100 | 0.01 | f(x) = probability | ||
-200 | 0.04 | |||
0 | ||||
100 | 0.26 | |||
200 | 0.54 | |||
300 | 0.05 | |||
400 | 0.02 |
7 | What is the probability that X-Trac will be profitable? That is, f(x > 0) = _________. | ||||||
a | 0.87 | ||||||
b | 0.83 | ||||||
c | 0.79 | ||||||
d | 0.75 |
Expert Solution
Step 1
We need to find the probability that the profit is positive
x = Profit
f(x) = Probability of profit
Step by step
Solved in 2 steps
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