Question 8 Investment products have different probabilities of success. A businessman wishes to invest in two different products, A and B. The following table shows the probability distributions, where P (a, b) represents the probability of success of the investment of A and the ih investment of B, for the values (in thousands of GHe) for A and B invested in 4 different years. Base on this information: (a) A B P(a,b) 3 6 0.3 2 4 0.2 5 3 0.4 1 2 0.1 Which of the investments has a better return and why?
Question 8 Investment products have different probabilities of success. A businessman wishes to invest in two different products, A and B. The following table shows the probability distributions, where P (a, b) represents the probability of success of the investment of A and the ih investment of B, for the values (in thousands of GHe) for A and B invested in 4 different years. Base on this information: (a) A B P(a,b) 3 6 0.3 2 4 0.2 5 3 0.4 1 2 0.1 Which of the investments has a better return and why?
Chapter8: Sequences, Series,and Probability
Section8.7: Probability
Problem 4ECP: Show that the probability of drawing a club at random from a standard deck of 52 playing cards is...
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Transcribed Image Text:(b) Which of the investments is relatively less risky and why?
(c)
What type of association exists between the two investment options A and
B? Interpret your results.
Transcribed Image Text:Question 8
Investment products have different probabilities of success. A businessman wishes to
invest in two different products, A and B. The following table shows the probability
distributions, where P (a, b) represents the probability of success of the ih investment of
A and the ih investment of B, for the values (in thousands of GH¢) for A and B invested
in 4 different years. Base on this information:
(a)
A
B
P(a,b)
3
6
0.3
2
4
0.2
5
3
0.4
1
2
0.1
Which of the investments has a better return and why?
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