Business projection: An investor is considering an investment in a start-up company. She estimates that she has probability 0.39

Question

Business projection: An investor is considering an investment in a start-up company. She estimates that she has probability
0.39 of a $23,000 loss, probability 0.21 of a $8300 profit, probability 0.14 of a $35,000 profit, and probability 0.26 of breaking
even (a profit of $0). What is the expected value of the profit? Would you advise the investor to make the investment?

Kunduz · Accepted Answer

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