In the table below x denotes the X-Tract Company’s projected annual profit (in $1,000). The table also shows the probability of earning that profit. The negative value indicates a loss. x f(x) x = profit -100 0.01 f(x) = probability -200 0.04 0 100 0.26 200 0.54 300 0.05 400 0.02 7 What is the probability that X-Trac will be profitable? That is, f(x > 0) = _________. a 0.87 b 0.83 c 0.79 d 0.75
In the table below x denotes the X-Tract Company’s projected annual profit (in $1,000). The table also shows the probability of earning that profit. The negative value indicates a loss. x f(x) x = profit -100 0.01 f(x) = probability -200 0.04 0 100 0.26 200 0.54 300 0.05 400 0.02 7 What is the probability that X-Trac will be profitable? That is, f(x > 0) = _________. a 0.87 b 0.83 c 0.79 d 0.75
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
| In the table below x denotes the X-Tract Company’s projected annual profit (in $1,000). The table also shows the probability of earning that profit. The negative value indicates a loss. |
| x | f(x) | x = profit | ||
| -100 | 0.01 | f(x) = probability | ||
| -200 | 0.04 | |||
| 0 | ||||
| 100 | 0.26 | |||
| 200 | 0.54 | |||
| 300 | 0.05 | |||
| 400 | 0.02 |
| 7 | What is the probability that X-Trac will be profitable? That is, f(x > 0) = _________. | ||||||
| a | 0.87 | ||||||
| b | 0.83 | ||||||
| c | 0.79 | ||||||
| d | 0.75 |
Expert Solution
Step 1
We need to find the probability that the profit is positive
x = Profit
f(x) = Probability of profit
Step by step
Solved in 2 steps
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