Mathematics, 30.03.2020 08:09 caleb19moody
An investor is considering a $10,000 investment in a start-up company. She estimates that she has probability 0.40 of a $12,800 loss, probability 0.26 of a $10,300 profit, probability 0.19 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?
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An investor is considering a $10,000 investment in a start-up company. She estimates that she has pr...
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