uestion 9 (5 points) An investor is considering an investment in a start-up comp

Question

uestion 9 (5 points) An investor is considering an investment in a start-up company. She estimates that she has probability 0.25 of a $ 38,053 loss, probability 0.20 of a $19,150 profit, probability 0.15 of a $ 48,473 profit, and probability 0.40 of breaking even (a profit of $0). What is the expected value of the proft? Write only a number as your answer. Round to the nearest whole number. Your Answer: Answer Save uestion 10 (5 points) The probability that a student uses Smarthinking Online Tutoring on a regular basis is 0.31. In a group of 21 students, what is the probability that exactly 7 of them use Smarthinking Online Tutoring on a regular basis? Write only a number as your answer. Round to 4 decimal places (for example 0.2416). Do not write as a percentage. Your Answer:

Explanation / Answer

Solution(9)
Expected value of profit =
- (0.25*38053) + (0.20*19150) + (0.15*48473) + (0*0.40) = -9513.25+3830+7270.95+0 = 1587.7
So there is expected value of profit = $ 1588

Solution(10)
Given in the question P = 0.31
P(X=7| n= 21) = 21C7 *(0.31)^7 *(0.69)^14 = 116280*0.000275*0.005544 = 0.17738 or 0.1774

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.