What is the simple interest on $40,000 for 10 years at 12%?
2 answers:
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Using the expected value, it is found that the mean of the distribution equals $0.1.
- The expected value, which is the mean of the distribution, is given by <u>each outcome multiplied by it's probability</u>.
The probabilities of <u>each outcome</u> are:
- .0000001 probability of earning $1,000,000.
- .9999999 probability of earning $0.
Thus, the mean is given by:
Thus showing that the expected value is $0.1.
A similar problem is given at brainly.com/question/24855677