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Mathematics, 27.07.2020 14:01 Irvin1323
PLEASE HELP ANSWER A-B 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 if she makes a profit. Should she invest? Explain using expected values. B.) If Claire’s initial investment is $1,200 and the expected value for the new business stays constant, how many years will it take for her to earn back her initial investment? LOOK AT PICTURE BELOW
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PLEASE HELP ANSWER A-B Claire is considering investing in a new business. In the first year, there i...
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