Internet Investments in the 1990s The following excerpt is from an article in The New York Times in July 1999: 35 While statistics are not available for web entrepreneurs who fail, the venture capitalists that finance such Internet start-up companies have a rule of thumb. For every 10 ventures that receive financing—and there are plenty that do not—2 will be stock market successes, which means spectacular profits for early investors; 3 will be sold to other concerns, which translates into more modest profits; and the rest will fail. a. What is a sample space for the scenario? b. Write down the associated probability distribution. c. What is the probability that a start-up venture that receives financing will realize profits for early investors?
Solution Summary: The author explains that a sample space is the set of all possible outcomes for an experiment.
Internet Investments in the 1990s The following excerpt is from an article in The New York Times in July 1999:35
While statistics are not available for web entrepreneurs who fail, the venture capitalists that finance such Internet start-up companies have a rule of thumb. For every 10 ventures that receive financing—and there are plenty that do not—2 will be stock market successes, which means spectacular profits for early investors;
3 will be sold to other concerns, which translates into more modest profits; and the rest will fail.
a. What is a sample space for the scenario?
b. Write down the associated probability distribution.
c. What is the probability that a start-up venture that receives financing will realize profits for early investors?
Definition Definition For any random event or experiment, the set that is formed with all the possible outcomes is called a sample space. When any random event takes place that has multiple outcomes, the possible outcomes are grouped together in a set. The sample space can be anything, from a set of vectors to real numbers.
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, subject and related others by exploring similar questions and additional content below.
Probability & Statistics (28 of 62) Basic Definitions and Symbols Summarized; Author: Michel van Biezen;https://www.youtube.com/watch?v=21V9WBJLAL8;License: Standard YouTube License, CC-BY
Introduction to Probability, Basic Overview - Sample Space, & Tree Diagrams; Author: The Organic Chemistry Tutor;https://www.youtube.com/watch?v=SkidyDQuupA;License: Standard YouTube License, CC-BY