Risk and probability Micro$-$Pub, Inc., is considering the purchase of one of two digital cameras, R and S$,$ each of which requires an initial investment of $$4,000.$ Management has constructed the following table of estimates of rates of return and probabilities for pessimistic, most likely, and optimistic results:

a$.$ Determint the range for the rate of return for each of the two cameras.

b$.$ Determine the value of the expected return for each camera.

c$.$ Which camera purchase is riskier? Why?

a$.$ The range for the rate of return for camera $R$ is $\%.($Round to the nearest whole number.$)$

The range for the rate of return for camera $S$ is $\%.($Round to the nearest whole number.$)$

b$.$ The value of the expected return for camera $R$ is $\%.($Round to two decimal places.$)$

The value of the expected return for camera $S$ is $q,\%.($Round to two decimal places.$)$

c$.$ Which camera purchase is riskier? Why? $($Select from the drop$-$down menus.$)$

The purchase of $$ is riskier because it has a $$ range for the rate of return.

Data table

$($Click on the icon here in order to copy the contents of the data table below into a spreadsheet.$)$

$\backslash$table$[[,$Camera R$,$Camera S$],[,$Amount,Probability,Amount,Probability$],[$Initial investment,$$4,000,1\mathrm{.}00,$$$4,000,1\mathrm{.}00],[$Annual rate of return,,,,$],[$Pessimistic$,22\%,0\mathrm{.}29,16\%,0\mathrm{.}25],[$Most likely,$25\%,0\mathrm{.}48,29\%,0\mathrm{.}51],[$Optimistic$,34\%,0\mathrm{.}23,31\%,0\mathrm{.}24]]$