Question

PLEASE HELP! WILL GIVE BRAINLIEST! 

Answer 1

Answer:

a. yes, she will make a profit of around $300.

b. It will take 4 years to earn back her initial investment.

Step-by-step explanation:

Claire is considering investing in a new business. As per data given,

There is a probability of business will lose $10,000 = 0.2

There is a probability of business will break even    = 0.4

There is a probability of business will make $5000 profits = 0.3

There is a probability of business will make $8000 profits = 0.1

To find expected value :

0.2 × (-10,000) + 0.4 × (0) + 0.3 × 5,000 + 0.1 × 8,000 = $300

a. Yes, Claire should invest in the company. she will make a profit of around  $300 in a year.

b. If Claire's expected value will be $300 and her initial investment $1200.

1200 ÷ 300 = 4 years

It will take around 4 years to earn back her initial investment.

Answer 2

Part A:Claire should not invest in the company because there's a higher chance of her to break even with her money(40 percent) and to lose 10000 (20 Percent) than there is to gain money. Hoped this helped.