7
AssignmentText Input

Expected Value

Question 7 • CREDIT RE-SEAT MNPS Integrated Math III IC S2 26-27

You are considering two investment opportunities. For investment A there is a 25% chance that you lose $20,000, a 50% chance that you break even, and a 25% chance that you make $80,000. For investment B there is a 30% chance that you lose $50,000, a 50% chance that you break even, and a 20% chance that you make $180,000. Based on the expected value of each, which investment should you make? The expected value of investment A is $.

Answer

Answer:

15000

Previous
Next