What is the expected foreign exchange rate?

Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter10: Sequences, Series, And Probability
Section: Chapter Questions
Problem 29T
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The current foreign exchange rate is 1 USD = Php 45. Assuming that the probability that the rate will be 1 USD = Php 40 is 70%, and the probability that it will be 1 USD = Php 46 is 20%, the probability that it will remain the same is 10%. What is the expected foreign exchange rate?

 

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