Imagine an investment with 3 possible outcomes. there's a 10% chance you'll lose the $1,000 you put in. there's an 80% chance you'll earn a $100 profit, and a 10% chance you'll earn a $300 profit. what is the expected value of making the investment?

Using it's concept, it is found that the expected value of making the investment is $10.

The expected value is given by the sum of each outcome multiplied by it's probability.

In this problem:

Hence, applying the expected value concept:

The expected value of making the investment is $10.

A similar problem is given at link

In this case, the expected value of a discrete random variable is equal to the sum of the probability of occurrence of each event multiplied by the value of the result of said event.

Then, the possibilities of dollar gains multiply by their probability of occurrence and add up. In this way, the expected value in this problem is:

Finally, the expected value of making the investment is $ 10 net profit.

answer:     true

step-by-step explanation:

answer: .75 km

step-by-step explanation: