Business projection: An investor is considering an investment in a start-up company. She estimates that she has probability 0.38 of a $14,400 loss, probability 0.25 of a $10,300 profit, probability 0.12 of a $38,000 profit, and probability 0.25 of breaking even (a profit of $0). What is the expected value of the profit? Would you advise the investor to make the investment? Part: 0 / 2 Part 1 of 2 The expected value of the profit is $ Part: 1 / 2 Part 2 of 2 The investor (Choose one) ▼ make the investment. should should not X

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Business projection: An investor is considering an investment in a start-up company. She estimates that she has probability 0.38 of a $14,400 loss,
probability 0.25 of a $10,300 profit, probability 0.12 of a $38,000 profit, and probability 0.25 of breaking even (a profit of $0). What is the expected value of
the profit? Would you advise the investor to make the investment?
Part: 0 / 2
Part 1 of 2
The expected value of the profit is $
Part: 1 / 2
Part 2 of 2
X
The investor (Choose one) make the investment.
should
should not
Ś
X
Ś
000
119
Transcribed Image Text:Business projection: An investor is considering an investment in a start-up company. She estimates that she has probability 0.38 of a $14,400 loss, probability 0.25 of a $10,300 profit, probability 0.12 of a $38,000 profit, and probability 0.25 of breaking even (a profit of $0). What is the expected value of the profit? Would you advise the investor to make the investment? Part: 0 / 2 Part 1 of 2 The expected value of the profit is $ Part: 1 / 2 Part 2 of 2 X The investor (Choose one) make the investment. should should not Ś X Ś 000 119
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