# 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 (%) Probability5 ........ .26 ......... .37 ........ .38 ......... .19 ......... .1Using expected value, determine her best investment decision.

Chapter 12, Problems #21

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.

Interest Rate (%) Probability

5 ........ .2

6 ......... .3

7 ........ .3

8 ......... .1

9 ......... .1

Using expected value, determine her best investment decision.

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