A venture capitalist, willing to invest $1,000,000, has three investments to choose from. The first investment, a software company, has a 14% chance of returning $8,000,000 profit, a 19% chance of returning $1,500,000 profit, and a 67% chance of losing the million dollars. The second company, a hardware company, has a 15% chance of returning $9,000,000 profit, a 37% chance of returning $3,500,000 profit, and a 48% chance of losing the million dollars. The third company, a biotech firm, has a 15% chance of returning $6,000,000 profit, a 28% of no profit or loss, and a 57% chance of losing the million dollars. Order the expected values from smallest to largest. first, third, second third, first, second third, second, first second, first, third first, second, third second, third, first
A venture capitalist, willing to invest $1,000,000, has three investments to choose from. The first investment, a software company, has a 14% chance of returning $8,000,000 profit, a 19% chance of returning $1,500,000 profit, and a 67% chance of losing the million dollars. The second company, a hardware company, has a 15% chance of returning $9,000,000 profit, a 37% chance of returning $3,500,000 profit, and a 48% chance of losing the million dollars. The third company, a biotech firm, has a 15% chance of returning $6,000,000 profit, a 28% of no profit or loss, and a 57% chance of losing the million dollars.
Order the
- first, third, second
- third, first, second
- third, second, first
- second, first, third
- first, second, third
- second, third, first
Introduction:
Denote the random variable X1 as the profit from the first investment or the investment in the software company, and p (x1) as the probability corresponding to X1 = x1.
Denote the random variable X2 as the profit from the second investment or the investment in the hardware company, and p (x2) as the probability corresponding to X2 = x2.
Denote the random variable X3 as the profit from the third investment or the investment in the biotech firm, and p (x3) as the probability corresponding to X3 = x3.
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