Question:

Question 9 The Triple L investment club is considering purchasing a certain stock. After considerable research, the club members

Question 9
The Triple L investment club is considering purchasing a certain stock. After considerable research, the club members determine that there is a 55% chance of mak
$10,000, a 25% chance of breaking even, and a 20% chance of losing $6,000. Find the expectation of this purchase. Round your result to the nearest cent. Enter
your result in the space below.
I

Question 9 The Triple L investment club is considering purchasing a certain stock. After considerable research, the club members determine that there is a 55% chance of mak $10,000, a 25% chance of breaking even, and a 20% chance of losing $6,000. Find the expectation of this purchase. Round your result to the nearest cent. Enter your result in the space below. I

Answer

since there is a 55% chance of making $10,000
so have that
!
SSXX 10,000
5500
55
X10,009
100
Also, we have a 25% chance of breaking
even, so we also have that:
250% Xo
0.
ve
4
finally
& 6000
have 20% chance of losing
so ue also have that:
20%. X 6000=
20
x6000
= 1200
100
Thus, putting it all together we have
55. (10.000) + 25/(0)+ 20% (0000)
5500 tot 1200
6700
Therefore, the expected value is: $ 6700.

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since there is a 55% chance of making $10,000 so have that ! SSXX 10,000 5500 55 X10,009 100 Also, we ... Download the app for the rest