A business firm is considering two investments. It will choose the one that promises the greater payoff. Which of the investments should it accept? (Let the mean profit measure the payoff.)

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Invest in Tool Shop Invest in Book Store Probability 0.10 0.30 0.30 0.30 Total 1.00 Profit $400,000 90,000 -20,000 -250,000 Probability 0.20 0.10 0.40 0.30 Total 1.00 Profit $100,000 50,000 20,000 80,000