Question

A construction company plans to invest in a building project. There is a 30% chance that the company will lose $30,000, a 40% chance of a break even, and a 30% chance of a $60,000 profit. Based ONLY on this information, what should the company do?

Answer 1

30% chance of losing money.

40% chance of breaking even

Added together = 70% of not making any money or losing money.

Only a 30% chance of making money.

The company should not invest, since they only have a 30% chance of making money.