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3 years ago

Use the probability model above to determine the successful outcome’s contribution to the expected value of the return.

Mathematics

1 answer:

Keith_Richards [23]3 years ago

8 0

Answer: Hence, Option 'D' is correct.

Step-by-step explanation:

Since we have given that

Probability of successful outcome = 0.7

Probability of unsuccessful outcome = 0.3

Amount he get for successful outcome = $900

Amount he lost for unsuccessful outcome = -$1800

We need to find the expected value of return when there is successful outcome:

P(Success)× Amount for successful

$0.7\times \$900\\\\=\$630$

Hence, Option 'D' is correct.

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