QUESTION 19An investor is considering a $15,000 investment in a start-up company. She estimates that she has probability 0.15 of a $5,000 loss, probability 0.15of a $10,000 loss, probability 0.15 of a $50,000 profit, and probability 0.55 of breaking even (a profit of $0). What is the expected value of the profit?prbabiltyp Usethe binomialDo no bond intermedibte

Given that An investor considering a $15,000 investment in a start up company. She estimates that…

Answered: An investor is considering a $15,000…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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Statistics Question
An investor is considering a $30,000 investment in a start-up company. She estimates that she hasa probability of 0.30 of a $20,000 loss, probability of 0.20 of a $35,000 profit, probability of 0.35 of a$45,000 profit, and probability 0.15 of breaking even (a profit of $0). What is the expected value of theprofit? Would you advise the investor to make the investment? Explain why?
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