Business projection: An investor is considering an investment in a start-up company. She estimates that she...
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Business projection: An investor is considering an investment in a start-up company. She estimates that she has probability 0.40 of a $10,000 loss, probability 0.28 of a $11,000 profit, probability 0.18 of a $34,000 profit, and probability 0.14 of breaking even (a profit of $0). What is the expected value of the profit? Would you advise the investor to make the investment? Part 1 of 2 The expected value of the profit is $5200 Part: 1/2 Part 2 of 2 The investor should make the investment. X 5 should should not D Business projection: An investor is considering an investment in a start-up company. She estimates that she has probability 0.40 of a $10,000 loss, probability 0.28 of a $11,000 profit, probability 0.18 of a $34,000 profit, and probability 0.14 of breaking even (a profit of $0). What is the expected value of the profit? Would you advise the investor to make the investment? Part 1 of 2 The expected value of the profit is $5200 Part: 1/2 Part 2 of 2 The investor should make the investment. X 5 should should not D
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