An investor is considering a $25,000 investment in a start-up company. She estimates that she has probability 0.05 of a $15,000 loss, probability 0.15 of a $20,000 loss, probability 0.35 of a $35,000 profit, and probability 0.45 of breaking even (a profit of $0). What is the expected value of the profit?
The Answer to the Question
is below this banner.
Can't find a solution anywhere?
NEED A FAST ANSWER TO ANY QUESTION OR ASSIGNMENT?
Get the Answers Now!You will get a detailed answer to your question or assignment in the shortest time possible.
Here's the Solution to this Question
The expected value of the profit is $8500 profit.