If I am considering an investment that has a 40% probability of earning a $100 return,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
If I am considering an investment that has a 40% probability of earning a $100 return, a 50% probability of earning a $200 return, and a 10% probability of earning a $50 return, then what is the expected value of my return on the investment? If I am considering an investment that has a 40% probability of earning a $100 return, a 50% probability of earning a $200 return, and a 10% probability of earning a $50 return, then what is the expected value of my return on the investment?
Expert Answer:
Answer rating: 100% (QA)
Expected value Probability of 100 return 100 Probab... View the full answer
Related Book For
Statistics For Business Decision Making And Analysis
ISBN: 9780134497167
3rd Edition
Authors: Robert A. Stine, Dean Foster
Posted Date:
Students also viewed these economics questions
-
Homework-2 DECISION ANALYSIS PROBLEMS Problem-1: Kenneth Brown is the principal owner of Brown Oil, Inc. After quitting his university teaching job, Ken has been able to increase his annual salary by...
-
Ques 1: What is the major complaint by firms concerning the Sarbanes-Oxley act of 2012? A. the legislative maximum allowable compensation for a CEO. B. the legal requirement to disclose project...
-
Multiple Choice Questions 1. You are taking a multiple-choice test that awards you one point for a correct answer and penalizes you 0.25 points for an incorrect answer. If you have to make a random...
-
Exhibits 7.17 and 7.18 provide footnote excerpts to the financial reports of The Coca-Cola Company and Eli Lilly and Company that discuss the stock option grants given to the employees of the two...
-
Long flights at mid latitudes in the Northern Hemisphere encounter the jet stream, &r eastward airflow that can affect a plane's speed relative to Earth's surface, if a pilot maintains a certain...
-
An A + B mixture exhibits solvation in the liquid phase, which is to be represented using ideal chemical theory. Because of a Lewis acid/base interaction, the system is expected to form a 1-1...
-
What is the System Operations Model?
-
Benjamin Neves bowling ball factory in Pennsyvania makes bowling balls of adult size and weight only. The standard deviation in the weight of a bowling ball produced at the factory is known to be...
-
a. Let F(x, y) = (xy)j. Sketch F(x, y) b. On your diagram, sketch three oriented curves: i. a with F(x,y) d> 0 ii. with F(x,y). dr = 0 iii. y with f, F(x, y) d < 0
-
Branson paid $626,400 cash for all of the outstanding common stock of Wolfpack, Inc., on January 1, 2020. On that date, the subsidiary had a book value of $428,000 (common stock of $200,000 and...
-
Revenues generated by a new fad product are forecast as follows: Year Revenues 1 $61,148 2 40,000 3 20,000 10,000 Thereafter O Expenses are expected to be 50% of revenues, and working capital...
-
An open train car, with a mass of 2050 kg, coasts along a horizontal track at the speed 2.77 m/s. The car passes under a loading chute and, as it does so, gravel falls vertically into it for 2.67 s...
-
You perform 1000J of work carrying a 28kg couch for 12s. If you carry the couch for 20m, what is the change in momentum of the couch?
-
A common test for automobile performance is driving the car from 0mph - 60mph - 0mph. This tests both the acceleration of the car and its stopping time. Calculate the total momentum change of a 1850...
-
A line L passes through point (3,1) and is perpendicular to the line 2y = 4.x | 5. Determine the equation of line L.
-
A tech startup is entering the competitive field of AI-driven analytics. How would the founders articulate their mission and vision in the business plan to differentiate themselves from established...
-
Complete the following table: (Enter all values as positive values.) Production 625 830 925 675 840 NUMBER OF UNITS Sales Ending Inventory 550 680 1,225 785 125 90 95 195 310 Beginning Inventory 125...
-
Show that the block upper triangular matrix A in Example 5 is invertible if and only if both A 11 and A 22 are invertible. Data from in Example 5 EXAMPLE 5 A matrix of the form A = [ A11 A12 0 A22 is...
-
As part of the study underlying Example 26.1, each customer took a test that measures willingness to believe claims, producing a numerical score called Gullible. If the customers had not been...
-
Match the description of each concept with the correct symbol or term. One-sided null hypothesis (a) t-statistic (b) 0 (c) p-value (d) p-value < (e) Type I error (f) z-statistic (g) Type II error...
-
Match the item from the first column to the best item from the second. Bayes Rule (a) P(A and B) = P(A) P(B|A) (b) P(A|B) = P(B|A) P(A) >P(B) (c) P(A) = P(A|B) (d) 1 - P(B|A) (e) P(A) P(A|B) (f)...
-
For installation and operation of a pipeline for an incompressible fluid, the total cost (in dollars per year) can be represented as follows: \[C=C_{1} D^{1.5} L+C_{2} m \Delta p / ho\] where...
-
Heavy fuel oil, initially semisolid at $15^{\circ} \mathrm{C}$ is to be heated and pumped through a $15 \mathrm{~cm}$ diameter (inside) pipe at the rate of $20000 \mathrm{~kg} / \mathrm{h}$. The pipe...
-
We are interested to produce $P$ in the reaction $A ightarrow P$ using a continuous reactor at $v=240$ liters/ hr with $C_{A_{0}}=3$ moles/liter. However, it is noticed that there is a second...
Study smarter with the SolutionInn App