Returns on a certain business venture to the nearest 1000, Ask an Expert

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Returns on a certain business venture, to the nearest $1,000, are known to follow the probability distribution

x	P(x)
-2,000	0.1
-1,000	0.1
0	0.2
1,000	0.2
2,000	0.3
3,000	0.1

a. What is the most likely monetary outcome of the business venture?

b. Is the venture likely to be successful? Explain.

c. What is the long-term average earning of business ventures of this kind? Explain.

d. What is a good measure of the risk involved in a venture of this kind? Why? Compute this measure.

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Statistics and Probability, Statistics

Category:- Statistics and Probability
Reference No.:- M92180617

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