Question 2 bt Scott likes to day trade on the internet. On a good day,the averag

Question

Question 2 bt Scott likes to day trade on the internet. On a good day,the averages $390 gain. On a bad day, days 24% of the time, bad days 36% of the time, and the rest of the time, be averages a $275 loss Suppose that he has good even. Let X represent Scott's income from day trading What is expected value of Scott's day trading hobby? After 1 month, (30 dayd. money would he expect to make/lose? (In other words, what bs the net gain/loss?) $115, $3450 gain O None of these is correct $5.4, $162 gain $192.6, $5778 gain $-115, $3450 loss ·454, $162 loss

Explanation / Answer

a) Expected Value = 0.24 * 390 - 0.36 * 275

EV = - $5.4

b) After one month

Net loss = 30 * - 5.4

Net loss = - $162

Last option

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