The following table shows a partial probibility distributionfor a company\'s pro

Question

The following table shows a partial probibility distributionfor a company's projected profits in the thousands of dollars( negative numbers denotes a loss)       X               f(x) -100               0.10 0                     0.20 50                   0.30 100                 0.25 150                  0.10 200                  ???    What is the probability associated with thecompany mking a profit of $200,000?     What is the probability that this companywill be profitable? The following table shows a partial probibility distributionfor a company's projected profits in the thousands of dollars( negative numbers denotes a loss)       X               f(x) -100               0.10 0                     0.20 50                   0.30 100                 0.25 150                  0.10 200                  ???    What is the probability associated with thecompany mking a profit of $200,000?     What is the probability that this companywill be profitable?

Explanation / Answer

We know that the sum of all the probabilities is equal to 1,so 0.10+0.20+0.30+0.25+0.10+f(200) = 1 Thus, f(200) = 0.05 P(profitable) = f(50)+f(100)+f(150)+f(200) =0.30+0.25+0.10+0.05 = 0.70

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