Every month Jorge invests a quantity of money in shares in the stock market. With a probability of 1/3, Jorge makes a mistake in the investment and makes a profit between -10 and 1 million pesos (negative values represent losses). On the other hand, with a 2/3 probability, Jorge earns between 1 and 8 million. All intervals of gain (or loss) are evenly distributed.

a) Define the density function f_X (x)

b) What is the probability that Jorge does not lose money?

c) What is Jorge's expected profit?

Answer rating: 100% (QA)

a The density function fX x is defined as follows fX x 1... View the full answer