Question: Paradise Real-estate developer is considering building a condominium project. Five different sizes are being considered. The probabilities reflect the company's belief that the profit will

Paradise Real-estate developer is considering building a condominium project. Five different sizes are being considered. The probabilities reflect the company's belief that the profit will be realized (e.g., there is a 20% chance that a $4.2 million profit will result if the 30 unit condominium is built). Condominium size Probability Net Profit (Millions $) 10 units 0.1 2.1 20 units 0.3 3.5 30 units 0.2 4.2 40 units 0.05 4.4 50 units 0.35 5.9 1) Which of the following are correct regarding discrete probability distributions A. The summation of the probabilities for the simple events in the distribution must sum to 1.0 B. It is possible to a negative values for the probabilities C. All probabilities must be less than or equal to one D. Answers A, B and C are correct E. Answers A and C are correct
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
