Question
Asked Oct 29, 2019
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this a statistics question!!!! I am lookin for the monetary value!!!!


For box a is $100,000 

box b is -$55,000

box c is 0 

and box d is 0 

p1 = 75%
p2 = 25% 

questions are 

1. what EMV  ( expected monetary value)  amount do you come up with ? And what is your EMV decision ? In other words, do you build, or not?

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Expert Answer

Step 1

Solution:

The expected value of a random variable X formula is

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Ε(1) -Σ2(x = )

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Step 2

1.The EMV  ( expected monetary value) is obtained below:

From the given information, box a is $100,000, box b is –$55,0...

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E(1) -ΣΡ(X =x | -[(100,000x 0.75)+(-55,000x 0.25)] 75,000-13,750 61,250

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