A venture capitalist, willing to invest $1,000,000, has three investments to choose from. The first investment, a software company, has a 13% chance of returning $11,000,000 profit, a 25% chance of returning $2,000,000 profit, and a 62% chance of losing the million dollars. The second company, a hardware company, has a 14% chance of returning $6,000,000 profit, a 39% chance of returning $3,000,000 profit, and a 47% chance of losing the million dollars. The third company, a biotech firm, has a 7% chance of returning $6,000,000 profit, a 40% of no profit or loss, and a 53% chance of losing the million dollars. Order the expected values from smallest to largest. third, first, second third, second, first first, second, third first, third, second second, third, first second, first, third
A venture capitalist, willing to invest $1,000,000, has three investments to choose from. The first investment, a software company, has a 13% chance of returning $11,000,000 profit, a 25% chance of returning $2,000,000 profit, and a 62% chance of losing the million dollars. The second company, a hardware company, has a 14% chance of returning $6,000,000 profit, a 39% chance of returning $3,000,000 profit, and a 47% chance of losing the million dollars. The third company, a biotech firm, has a 7% chance of returning $6,000,000 profit, a 40% of no profit or loss, and a 53% chance of losing the million dollars. Order the expected values from smallest to largest. third, first, second third, second, first first, second, third first, third, second second, third, first second, first, third
MATLAB: An Introduction with Applications
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ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
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Problem 1P
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A venture capitalist, willing to invest $1,000,000, has three investments to choose from. The first investment, a software company, has a 13% chance of returning $11,000,000 profit, a 25% chance of returning $2,000,000 profit, and a 62% chance of losing the million dollars. The second company, a hardware company, has a 14% chance of returning $6,000,000 profit, a 39% chance of returning $3,000,000 profit, and a 47% chance of losing the million dollars. The third company, a biotech firm, has a 7% chance of returning $6,000,000 profit, a 40% of no profit or loss, and a 53% chance of losing the million dollars.
Order the
- third, first, second
- third, second, first
- first, second, third
- first, third, second
- second, third, first
- second, first, third
Expert Solution
Step 1:- Table
First company,
| Profit (X) | p(x) |
| 11000000 | 13% = 0.13 |
| 2000000 | 25%= 0.25 |
| -1000000 | 62%=0.62 |
Second company,
| X | p(x) |
| 6000000 | 0.14 |
| 3000000 | 0.39 |
| -1000000 | 0.47 |
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