Mathematics, 16.03.2020 23:14 alleshia2007
An investor is considering a $30,000 investment in a start-up company. She estimates that she has a probability of 0.30 of a $20,000 loss, probability of 0.20 of a $35,000 profit, probability of 0.35 of a $45,000 profit, and probability 0.15 of breaking even (a profit of $0). What is the expected value of the profit? Would you advise the investor to make the investment? Explain why?
Answers: 3
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An investor is considering a $30,000 investment in a start-up company. She estimates that she has a...
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