Question

In a certain city, projections for the next year indicate there is a 20% chance that electronics jobs will increase by 1000, a 50% chance that they will increase by 300, and a 30% chance they will decrease by 700. Find the expected change in the number of electronics job in the city next year

Answer 1

The expected change in the number of electronics job in the city next year is of 140.

Explanation:

We have these following probabilities:

20% chance it increases by 1000.

50% chance it increases by 300.

30% it decreases by 700.

Find the expected change in the number of electronics job in the city next year

We multiply each outcome by it's probability. So

E = 0.2*1000 + 0.5*300 - 0.3*700 = 140

The expected change in the number of electronics job in the city next year is of 140.