1)  We are going to have an outdoor art festival!  It is estimated that 120 people will come if it is a cool day, 100 will come if it is a warm day, and 40 will come if is a hot day.  Bay News 9 estimates that there is a 20% chance of being a cool day, 65% chance of being a warm day, and a 15% chance of being a hot day.

2. An investor is considering an investment.  He estimates that there is a 60% chance of making $5,000, a 32% losing chance of losing $10,000, and an 8% chance of breaking even.

 

3. An investor is considering an investment.  He estimates that there is a 44% chance of making $15,000, a 22% chance of losing $17,000, and a 34% chance of breaking even.

Answer rating: 100% (QA)

Expected value is obtained by multipling each of the possible outcome with their respective probabil... View the full answer