Business projection: An investor is considering an investment in a start-up company. She estimates that she has probability 0.39 of a $23,200 loss, probability 0.28 of a $14,100 profit, probability 0.19 of a $48,000 profit, and probability 0.14 of breaking even (a profit of $0). What is the expected value of the profit? Would you advise the investor to make the Investment?
Business projection: An investor is considering an investment in a start-up company. She estimates that she has probability 0.39 of a $23,200 loss, probability 0.28 of a $14,100 profit, probability 0.19 of a $48,000 profit, and probability 0.14 of breaking even (a profit of $0). What is the expected value of the profit? Would you advise the investor to make the Investment?
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question
Select the correct option.
![Business projection: An investor Is considering an investment in a start-up company. She estimates that she has probability
0.39 of a $23,200 loss, probability 0.28 of a $14,100 profit, probability 0.19 of a $48,000 profit, and probability 0.14 of breaking
even (a profit of $0). What is the expected value of the profit? Would you advise the Investor to make the Investment?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbc45acd1-272a-4537-80b5-16bc99d2b18e%2Fb7aa033f-d2de-41b8-a83f-34779fdbef88%2Fezon2xk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Business projection: An investor Is considering an investment in a start-up company. She estimates that she has probability
0.39 of a $23,200 loss, probability 0.28 of a $14,100 profit, probability 0.19 of a $48,000 profit, and probability 0.14 of breaking
even (a profit of $0). What is the expected value of the profit? Would you advise the Investor to make the Investment?
![The investor (Choose one)
make the investment.
should
should not](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbc45acd1-272a-4537-80b5-16bc99d2b18e%2Fb7aa033f-d2de-41b8-a83f-34779fdbef88%2F2xyaz11_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The investor (Choose one)
make the investment.
should
should not
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