Q11) Returns on a certain business venture, to the nearest $1,000, are known to follow the following probability distribution

x

P(x)

-2,000

0.1

-1,000

0.1

0

0.2

1000

0.2

2000

0.3

3000

0.1

(i)What is the most likely monetary outcome of the business venture?

(ii)Is the venture likely to be successful? Explain

(iii)What is the long-term average earning of business ventures of this kind? Explain

(iv)What is the good measure of the risk involved in a venture of this kind? Compute this measure