Statistics: Informed Decisions Using Data (4th Edition)

Published by Pearson
ISBN 10: 0321757270
ISBN 13: 978-0-32175-727-2

Chapter 6 - Section 6.1 - Assess Your Understanding - Applying the Concepts - Page 332: 29

Answer

The expected profit from this investment $12,000.

Work Step by Step

$E(X)=μ_X=Σ[x.P(x)]=50,000\times0.2+10,000\times0.7+(-50,000)\times0.1=12,000$
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