document.write( "Question 1105891: 4. Claire is considering investing in a new business. In the first year, there is a probability of 0.2 that the new business will lose $10,000, a probability of 0.4 that the new business will break even ($0 loss or gain), a probability of 0.3 that the new business will make $5,000 in profits, and a probability of 0.1 that the new business will make $8,000 in profits.
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Algebra.Com's Answer #720788 by Boreal(15235)![]() ![]() You can put this solution on YOUR website! Not clear what asked for but maybe Expected Value E(x)=sum x*p(x) \n" ); document.write( "This is \n" ); document.write( "MINUS 0.2*10000=-$2000 \n" ); document.write( "0.4*0=0 \n" ); document.write( "0.3*5000=$1500 \n" ); document.write( "0.1*8000=$800 \n" ); document.write( "E(x)=$2300-$2000=+$300. \n" ); document.write( "This would make it reasonable to invest. \n" ); document.write( " |