SOLUTION: At a local college the business students run an investment club. Each fall they create investment portfolios in multiples of $1,000 each. Records from the past several years show t
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Question 472647: At a local college the business students run an investment club. Each fall they create investment portfolios in multiples of $1,000 each. Records from the past several years show the following probabilities of profits. In the list below, x = profits per $1,000 and P(x) = probability of earning that profit. Find the expected value of the profit in a $1000 portfolio.
x----------P(x)
0-------- 0.15
50--------0.35
100-------0.25
150-------0.20
200-------0.05
$81.00
$81.50
$82.00
$82.50 Answer by robertb(5830) (Show Source):
