Question: I got hit with this practice problem and am completely ground to a halt on it- I'm not even sure it's a complete question. Please
I got hit with this practice problem and am completely ground to a halt on it- I'm not even sure it's a complete question. Please help?
"One evening, your menacing sister-in-law Yolanda confronts you on the expansive front porch of your country home.She has always been jealous of your success and is constantly questioning your understanding of risk.She asks you to pair a probability of occurrence with a particular outcome (e.g. the probability of a loss of 50,000 is 25%). The probabilities and outcomes represent the set of all possible events and their probabilities.
Probability: 0.40/Outcome: -45000
Probability: 0.60/Outcome: -60000
Pair the two probabilities and outcomes that lead to the lowest risk of loss."
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