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Business projection: An investor is considering an investment in a start-up company. She estimates that she has probability 0.39 of a $12,800 loss, probability 0.25
Business projection:An investor is considering an investment in a start-up company. She estimates that she has probability 0.39 of a $12,800 loss, probability 0.25 of a $15,000 profit, probability 0.13
of a
$58,000
profit, and probability
0.23
of breaking even (a profit of $0). What is the expected value of the profit? Would you advise the investor to make the investment?
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The expected value of the profit is $ ? |
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