Explanation Given information: x 20 , 000 10 , 000 50 , 000 0 P ( x ) 0.25 0.20 0.15 0.40 Formula used: The expected value = ∑ x p ( x ) Calculation: The possible values of X are $20,000, $10,000, $50,000 and $0 (break-even). The probability distribution of X is therefore as follows

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ISBN: 9781259724275

Author: William Navidi, Barry Monk

Publisher: McGraw-Hill Education

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Chapter 6.1, Problem 57E

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To calculate the expected value of profit.

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Chapter 6 Solutions

Elementary Statistics 2nd Edition

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To calculate the expected value of profit.

Solution Summary: The author explains how to calculate the expected value of profit, which is 145000.

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