Mathematics, 14.12.2020 20:40 Lucialari4345
Claire is considering investing in a new business. In the first year, there is a probability of 0.2 that the new business will lose $10,000, a probability of 0.4 that the new business will break even ($0 loss or gain) a, probability of 0.3 that the new business will make 5,000 in profits, and a probability of 0.1 that the new business will make $8,000 in profits
a. claire should invest in the company of she makes a profit. Should she invest? Explain using expected values
b. if claire's initial investment is $1,200 and the expected values for the new business stays constant, how many years will it take for her to earn back her initial investment?
Answers: 1
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Claire is considering investing in a new business. In the first year, there is a probability of 0.2...
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