There is 60% chance of making $12,000, 10% chance of breaking even and 30% chance of losing $6,200. What is the expected value of the purchase?

$5,340

Step-by-step explanation:

Given :

Making a probability distribution :

X : ___12000 0 -6200

P(X) __ 0.6 0.1 0.3

Tge expected value of the purchase si equal to the expected value or average, E(X) :

E(X) = ΣX*p(X)

E(X) = (12000 * 0.6) + (0 * 0.1) + (-6200 * 0.3)

E(X) = 7200 + 0 - 1860

E(X) = $5,340

0.16 or 16%

step-by-step explanation:

lets take a coin for example.

if you toss it twice, it has a 1/4 chance of landing on heads both times because 1/2 * 1/2 is 1/4.

with the cards, the chance of picking dog is 0.4. having two people pick one is like picking a card twice in a row. so 0.4 * 0.4 is 0.16, or 16%

b

step-by-step explanation:

a difference is the result of subtraction. while each of these expressions has subtraction in it, a difference will be the result when subtraction is the last operation applied in the order of operations for the expression. this means subtraction must be outside of the parenthesis. only b has this.