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svetlana [45]
3 years ago
9

In finance the notion of expected value is used to analyze investments for which the investor has an estimate of the chances ass

ociated with various returns (and losses). For example, suppose you have the following information about one of your investments: With a probability of 0.7, the investment will return 60 cents for every dollar you invest, and with a probability of 0.3, the investment will lose 20 cents for every dollar you invest. The expected rate of return for this investment is calculated the way we calculate the expected value of a game: Multiply the probability of each outcome by the amount you earn (or by minus the amount if you lose) and add up these numbers.
Mathematics
1 answer:
blagie [28]3 years ago
7 0

Answer:

Step-by-step explanation:

The expected return is given as

Expected Return = SUM (Return i x Probability i). i=1,2,3.....

First investment

Probability of 0.7, it returns 60cents per dollars

Second investment

Probably of 0.3, it loses 20cents per dollar.

Expected return=(0.7×60)-(0.3×20)

Excepted return= 42-6

Excepted return=36cents

To dollars, 1cents is 0.01dollars

Then, 36cents = 0.36dollars

Expected return=$0.36

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Jim will be paid $150 or 30% to his account.

Step-by-step explanation:

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How many solutions does this system have?
Sunny_sXe [5.5K]

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Step-by-step explanation:

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The area of triangle formed by points of intersection of parabola y=a(x−1)(x−4) with the coordinate axes is 3. Find a if it is k
n200080 [17]

Answer:

The value of a will be  a=-\frac{1}{2}

Step-by-step explanation:

Start by graphing the parabola and  the three points of the triangle. These points are at intersections of y=a(x-1)(x-4) and the axes

so the y = 0 points are (1,0) and (4,0).

The x = 0 intersection is when y=a(-1)(-4) or (0,4a)

The base and height of this triangle are

The base would be the distance between the y=0 intersections and the height would be the y value of the other vertex.

Hence, base=3 units and height = 4a units. Thus, area can be calculated as

A = \frac{1}{2}\times b\times h =\frac{1}{2}\times 3\times 4a = 3

a=\frac{1}{2}

∵ the parabola opens downward therefore a will be negative.

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3 0
3 years ago
Steve saw 313 birds during a bird-watching trip to Yellowstone National park. He observes 15 more trumpeter swans than sandhill
Bogdan [553]

Answer:

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Step-by-step explanation:

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5 0
2 years ago
A private jet can fly 1,095 miles in 3 hours with a tailwind but only 987 miles in 3 hours into a headwind find the speed of the
Verizon [17]

Answer:

The speed of the jet is 347 mph and the  speed of the wind is 18 mph.

Step-by-step explanation:

We have the following:

x = the speed of the jet in still air.

y = the speed of the wind

we know that the speed is equal to:

v = d / t

therefore the distance would be:

d = v * t

if we replace with the information of the exercise we have:

3 * (x + y) = 1095

3 * (x - y) = 987

we must solve this system of equations, add both equations and we are left:

3 * x + 3 * y = 1095

3 * x - 3 * y = 987

3 * x + 3 * y + 3 * x - 3 * y = 1095 + 987

6 * x = 2082

x = 2082/6 = 347

now to calculate y, we replace:

3 * (347 + y) = 1095

1041 + 3 * y = 1095

3 * y = 1095 - 1041

y = 54/3 = 18

The speed of the jet is 347 mph and the  speed of the wind is 18 mph.

8 0
3 years ago
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