Micheal invested $2000 in a certain stock. At the end of the year the stock could be worth $1600, $1850, $2200, or $2300. He thinks these changes are all equally likely, but he believes there is a 40% chance that the investment will simply stay the same. What is the mean and standard deviation of the profit on the investment?

A First Course in Probability (10th Edition)
10th Edition
ISBN:9780134753119
Author:Sheldon Ross
Publisher:Sheldon Ross
Chapter1: Combinatorial Analysis
Section: Chapter Questions
Problem 1.1P: a. How many different 7-place license plates are possible if the first 2 places are for letters and...
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Micheal invested $2000 in a certain stock. At the end of the year the stock could be worth $1600, $1850, $2200, or $2300. He thinks these changes are all equally likely, but he believes there is a 40% chance that the investment will simply stay the same. What is the mean and standard deviation of the profit on the investment?

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