Statistics

An investor is considering an investment in a start-up company. she estimates that she has probability 0.25 of a $ 39,739 loss, probability 0.20 of a $ 19,759 profit, probability 0.15 of a $ 49,068 profit, and probability 0.40 of breaking even (a profit of $0). What is the expected value of the profit?

Write only a number as your answer. Round to the nearest whole number.

  1. 👍 0
  2. 👎 0
  3. 👁 1,648
  1. EVprofit=.25(-39747)+.2(19759)+.15(59068)+.4(0)

    Surely you can do this math.

    1. 👍 1
    2. 👎 6
    👨‍🏫
    bobpursley

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