Question

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 $

Answer 1

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