Mathematics
NijahAboutTheStudies
16

A business has an opportunity to invest $35,000. If the investment is a success, the business earns a profit of $150,000. Otherwise, the investment will result in a total loss of all monies. If the investment has 0.27 chance of success, which equation correctly models the expected value of this investment?

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Value Succes: Profit = 150000 Investment = 35000 Total income = 150000 + 35000 = 185000 Expected income: 0.27 * 185000 = 49950 Net expected value = expected income - investment = 49950 - 35000 = 14950 .

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