You have been involved in a risky business venture where three outcomes are possible: a. You will lose not only your initial investment ($5,000) but an additional $3,000; b. You will just get back your initial investment (for a net gain of $0); c. You will get back your initial investment plus an extra $10,000.

The probability of (a) is half as large as the probability of (b), and the probability of (c) is one-third as large as the probability of (b).

QUESTION:

Find the individual probabilities of a, b, and c. (These should sum to 1) Find the expected value and standard deviation of your net gain(or loss) from this venture

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