2) A real estate investor is interested in buying a 4 bedroom apartment and selling it...

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2) A real estate investor is interested in buying a 4 bedroom apartment and selling it in a year's time. She feels that the possible values for her resulting profit (in 1000's$) could take the following values with associated probabilities. (Note: a negative value for profit should be interpreted as a loss of that value) Value Probability -100 -50 0 100 150 200 250 0.08 0.07 0.1 0.5 0.2 0.03 0.02 Compute the expected value of the profit 2) A real estate investor is interested in buying a 4 bedroom apartment and selling it in a year's time. She feels that the possible values for her resulting profit (in 1000's$) could take the following values with associated probabilities. (Note: a negative value for profit should be interpreted as a loss of that value) Value Probability -100 -50 0 100 150 200 250 0.08 0.07 0.1 0.5 0.2 0.03 0.02 Compute the expected value of the profit