An investor is considering a $30,000 investment in a start-up company.She estimates that she has a probability of 0.30 of a $20,000 loss, probability of 0.20 of a $35,000 profit, probability of 0.35 of a $45,000 profit, and probability 0.15 of breaking even (a profit of $0).

On a separate piece of paper, do the following and submit a picture, pdf or docx file of this work.

a) Create a discrete probability distribution.

b) What is the expected value of the profit?

c) Would you advise the investor to make the investment? Explain why?

1. Attach File