SOLUTION: In a proposed business venture, a business woman estimates there is a 65% chance she will make $52,000 and 35% chance she will lose $54,000. Determine her expected value

SOLUTION: In a proposed business venture, a business woman estimates there is a 65% chance she will make $52,000 and 35% chance she will lose $54,000. Determine her expected value

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Question 1026878: In a proposed business venture, a business woman estimates there is a 65% chance she will make $52,000 and 35% chance she will lose $54,000. Determine her expected value
Answer by robertb(5830) (Show Source): You can put this solution on YOUR website!
E(X) = 0.65*52,000 + 0.35*-54,000 = $14,900 (gain)
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