In Problem 10, Ann Tyler, with the help of a financial newsletter and some library research, has

Question:

In Problem 10, Ann Tyler, with the help of a financial newsletter and some library research, has been able to assign probabilities to each of the possible interest rates during the next year, as follows:
Interest Rate (%) Probability
5 ........ .2
6 ......... .3
7 ........ .3
8 ......... .1
9 ......... .1
Using expected value, determine her best investment decision.