b. The number of vehicles owned by a family Discrete Continuous 2. Nick has $5000 to invest and will commit the whole amount, for six months, to one of three technology stocks. A number of uncertainties could affect the prices of these stocks, but Nick is confident, based on his research; that one of only several possible profit scenarios will prove true of each one at the end of the six-month period. Company ABC Company RST Company XYZ Profit Probability Profit Probability Profit Probability -400 0.2 500 0.8 0 0.4 800 0.5 1000 0.2 700 0.3 1500 0.3 1200 0.1 2000 0.2 MZ E ( x ) = Exit ( x , ) a. Find the expected profit (or loss) or loss for each of the three stocks. Company XYZ Commony ARC Company RST Which is the optimal choice based on expected value? Company XYZ Company RST E E ( profit )