Ask Question
9 July, 16:51

The Triple L investment club is considering purchasing a certain stock. After considerable research, the club members determine that there is a 70% chsnce of making $12,000, 10% chance of breaking even, and a 20% chance of lising $7400. Finf the expectation if this purchase. The expected value is $

+5
Answers (1)
  1. 9 July, 18:34
    0
    Since there is a 70% chance of making $12,000 so have that:

    .70 * 12000 = 8400

    Also, we have a 10% chance of breaking even, so we also have that:

    .10 * 0 = 0

    Finally, we have a 20% chance of losing $7400 so we also have that:

    .20 * 7400 = 1480

    Thus, putting it all together we have:

    .70 (12000) +.10 (0) +.20 (7400) = 8400 + 0 + 1480 = 9880

    Therefore, the expected value is:

    $9880
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The Triple L investment club is considering purchasing a certain stock. After considerable research, the club members determine that there ...” in 📙 Mathematics if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers