1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
pogonyaev
3 years ago
11

You are considering two investment opportunities. For investment A there is a 25% chance that you lose $20,000, a 50% chance tha

t you break even, and a 25% chance that you make $80,000. For investment B there is a 30% chance that you lose $50,000, a 50% chance that you break even, and a 20% chance that you make $180,000. Based on the expected value of each, which investment should you make?
Mathematics
2 answers:
Tomtit [17]3 years ago
5 0

a 15000 !!! i just took the question

b 21000

Alex Ar [27]3 years ago
4 0

Answer:

you should make investment B

Step-by-step explanation:

The expected value of a discrete variable is calculated as:

E(x)=x_1P(x_1)+x_2P(x_2)+ ... + x_nP(x_n)

Where x_1, x_2, ... x_n are the possible values for the variable and  P(x_1), P(x_2), ... P(x_n) are their respective probabilities.

Then, the expected value for investment A is:

E(A) = -20,000(0.25) + 0(0.5) + 80,000(0.25) = $15,000

Because, you can lose $20,000 with a probability of 0.25, you can break even with a probability of 0.5 or you can win $80,000 with a probability of 0.25.

At the same way, the expected value for investment B is:

E(B) = -50,000(0.3) + 0(0.5) + 180,000(0.2) = $21,000

Then, you should make investment B because the expected value for investment B is bigger than the expected value for investment A.

You might be interested in
Find the value of y.<br><br> 5<br> 8<br> 4<br> 2<br><br> 50 Pts!
Vinvika [58]

Answer and Explanation:

Since this is a 30-60-90 triangle, you can use the ratio of side lengths specific to this type of triangle:

x = 4√(2)

y = 2(4) = 8

because where 4 = T,

x = T√2    and     y = 2T

so again:

x = 4\sqrt{2}\\y = 8

8 0
2 years ago
Read 2 more answers
HELP PLEASE I WILL GIVE YOU BRAINLIEST
Alja [10]
The answer is 600 because of the miles
3 0
2 years ago
Damian is going to invest in an account paying an interest rate of 5.2% compounded
viktelen [127]

Answer:

650

Step-by-step explanation:

651.606881968=P

round: 650

5 0
3 years ago
Read 2 more answers
What question do you ask when understanding the problem?
umka21 [38]
It seems that you have missed the necessary options to answer this question, but anyway, hope my answer helps. The question that you ask when understanding the problem would be this: "<span>what do I want to find out?"
Since the problem seeks for an answer, this would be the correct question. Hope this helps.</span>
6 0
3 years ago
Six bakers shared 7.5 kilograms of flour equally. How much flour did they receive
anastassius [24]
Each baker received 1.25 kilograms
4 0
3 years ago
Read 2 more answers
Other questions:
  • Elijah brought a total of 16 pounds of peanuts and cashew nuts and paid $49.50 if peanuts cost $2.75 per pound and cashews nuts
    6·1 answer
  • (assume no variable equals 0) PLEASE HELP
    8·1 answer
  • Jenna and Maria are hiking to a campsite located at
    10·1 answer
  • When I write my expression in rational exponent form, what is the fraction that goes with the base of 10?
    6·1 answer
  • The temperature today will be at most 50 °F
    11·2 answers
  • A music store marks up the instruments it sells by 30%
    15·1 answer
  • What's the sum of the infinite geometric series where a1 = 240, and the common ratio is r = 1∕3 ?
    7·1 answer
  • HELP ME ASAP PLEEEEAAASE
    9·1 answer
  • Graphing the function please help
    14·1 answer
  • Really need help with this, thank you!!!!!
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!