# Question: You now have 10 000 all of which is invested in

You now have $10,000, all of which is invested in a sports team. Each year there is a 60% chance that the value of the team will increase by 60% and a 40% chance that the value of the team will decrease by 60%. Estimate the mean and median value of your investment after 50 years. Explain the large difference between the estimated mean and median.

**View Solution:**## Answer to relevant Questions

The file S02_08.xlsx contains data on 500 shipments of one of the computer components that a company manufactures. Specifically, the proportion of items that are defective is listed for each shipment.a. Create a histogram ...Suppose you have invested 25% of your portfolio in four different stocks. The mean and standard deviation of the annual return on each stock are shown in the file S16_38.xlsx. The correlations between the annual returns on ...Appliances Unlimited (AU) sells refrigerators. Any refrigerator that fails before it is three years old is replaced for free. Of all refrigerators, 3% fail during their first year of operation; 5% of all one-year-old ...You are considering a 10-year investment project. At present, the expected cash flow each year is $10,000. Suppose, however, that each year’s cash flow is normally distributed with mean equal to last year’s actual cash ...The Tinkan Company produces one-pound cans for the Canadian salmon industry. Each year the salmon spawn during a 24-hour period and must be canned immediately. Tinkan has the following agreement with the salmon industry. The ...Post your question