Abusiness has an opportunity to invest $35,000. if the investment is a success, the business earns a profit of $150,000. otherwise, the investment will result in a total loss of all monies. if the investment has 0.27 chance of success, which equation correctly models the expected value of this investment?

the total expected value of the investment is given by:

0.27(150,000 - 35,000) + 0.73(-35,000)

The net value is:

5500.

Step-by-step explanation:

A business has an opportunity to invest $35,000.

If the investment is a success, the business earns a profit of $150,000.

The probability of success=0.27.

Hence, the value (in this case profit) of the business would be $150,000 (pure profit) minus the $35,000 (initial investment). Multiplying, you get =0.27(150,000 - 35,000).

Also the probability of failure=1-0.27=0.73

Hence, The value would now be $0 (pure profit) minus the original investment for a total of - $35,000. Multiplying, you get:

= 0.73(-$35,000).

Now the total expected value of the investment is given by:

0.27(150,000 - 35,000) + 0.73(-35,000)

on solving we get:

=0.27×115000-25550

=31050-25550

=5500.

answer: she must produce at least 9,000 windows in order to make a profit of $48,000

explanation:

48,000 - 12,000 = 36,000

36,000/4 = 9,000