An investor is considering a $20,000 investment in a start-up company. She estimates that she has probability 0.1 of a $10,000 loss, probability 0.1 of a $15,000 loss, probability 0.25 of a $25,000 profit, and probability 0.55 of breaking even (a profit of $0).

a) Complete the probability distribution.

Event Profit (x) P(x)

Lose $10,000 $

Lose $15,000 $

Profit $25,000 $

Break even $

b) What is the expect value of the profit?$

2) In a state's Pick 3 lottery game, you pay $0.86 to select a sequence of three digits (from 0 to 9), such as 977. If you select the same sequence of three digits that are drawn, you win and collect $301.25. Answer the following questions.

a) Complete the table below.

Events Profit (x) P(x)

Win $

Lose $

b) Find the expected value.

c) For every game played, you expect to lose $ on average.