3 years ago

PLEASE HELP. There is a 40% chance that you will lose $25,000 if you invest...

1 answer:

3 0

This is a weighted average basically take the percentages and multiply them by the amount. The total sum is the amount you will make.

0.4(-25000) + 0.25(0) + 0.35(40000)
-10000 + 0 + 14000
4000 is the expected value

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