In many respects, investing in the stock market is just another form of gambling: you pay money for the stocks, and when you sell them at some point, you can gain money, lose money, or break even. Use what you learned about expected value to answer the questions about buying and selling stock.

The Bui family decides to invest their $$7000$ tax refund in the stock market for one year. An analyst suggests that they choose between two stocks. A computer analysis of past performance predicts that if they invest in RZ Electronics, there's a $40\%$ chance they'll make a profit of $$2200,$ a $40\%$ chance they'll make $$350,$ and a $20\%$ chance they'll lose $$3500.$ For Jackson Builders, there's a $90\%$ chance they'll make $$900,$ and a $10\%$ chance they'll lose $$300.$

$($a$)$ Without doing any calculations, which sounds like the better investment to you?

Without doing any calculations, $($Choose one$),$grad sounds like the better investment.

RZ Electronics

$($b$)$ Find the expected value of e Jackson Builders hour answers to the nearest cent.

The expected value of the RZ Electronics investment is dollars.

The expected value of the Jackson Builders investment is dollars.