99,983 views
10 votes
10 votes
In a proposed business venture, a businesswoman estimates there is a 60% chance she will make $58,000 and a 40% chance she will lose 567,000. Determine her expected value.Her expected value is $

User Tintumon M
by
2.8k points

1 Answer

11 votes
11 votes

Her expected value is


\begin{gathered} 60\text{ \% of 58,000 -40\% of 6}7,000 \\ 34,800-24,800=\text{ \$8,000} \end{gathered}

THE FINAL ANSWER

HER EXPECTED VALUE IS $ 8.000

User Carst
by
3.7k points